Credit Card Boom in India Sees Defaults and Debt Traps Rise

Credit card adoption in India has risen exponentially from 2 crore in 2011 to nearly 10 crore in 2024, with over 1.6 crore new cards issued in 2023 alone.

Along with greater adoption, credit card spending has hit record highs, crossing Rs 5 lakh crore in last 3 months.

Defaults on credit card dues stood at Rs 4,072 crore in 2022-23, up from Rs 3,122 crore the previous year, ringing alarm bells.

Many people fall into debt traps by paying only minimum dues every month, with interest compounding to unmanageable levels.

Some even take personal loans to repay credit card dues, as interest rates are lower compared to credit cards with missed payments.