The decline in household savings coupled with increased borrowing, especially through credit cards, affects the economy. Despite RBI’s measures, personal loan growth remains high, driven largely by credit card usage. The ease of transactions and rewards attract users, with outstanding credit card loans growing over 30%. However, high-interest rates pose risks, with interest accruing rapidly if bills aren’t paid on time. While credit cards offer short-term convenience, they should be used judiciously to avoid accumulating high-cost debt. Prioritizing long-term financial goals over credit card bills is crucial to financial well-being and wealth creation. Responsible spending and borrowing are essential for sustainable personal finance management.
The Impact of Credit Card Usage on Personal Finance and the Economy
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