Credit card delinquencies in the country surged by 44 per cent year-on-year, reaching a whopping ₹33,886 crore as of March 2025, according to a recent report by The Indian Express. This drastic rise is primarily attributed to overdue payments coinciding with a boom in consumer spending and easy access to unsecured credit.
Furthermore, a significant portion of these defaults — ₹29,983.6 crore — comes from payments delayed between 91 and 180 days. This is a clear indication that borrowers are now struggling to manage repayment terms and schedules.
This jump in missed payments comes as the total number of credit cards in circulation has crossed 10 crore by September 2024, up from 9.3 crore in the past year. Data also reflected a rise in Portfolio at Risk (PAR); 8.2 per cent accounts overdue by 91-180 days were flagged in March 2025, in comparison with 6.9 per cent a year ago.
Lending institutions attribute this worrying trend to rising consumer expenses and a lack of financial management, especially among young borrowers who tend to default without revolving or repaying balances. Considering the above factors, it is important for credit card users to understand the concept of efficient financial management and use their credit instruments responsibly to avoid falling into endless debt.
5 smart habits to stay debt-free
1. Pay credit card bills on time: Missing even a single personal loan EMI payment or credit card bill can attract high interest charges and harm your credit score. So stay focused on addressing your pending payments.
2. Limit credit usage: Avoid maxing out your credit limit. A credit utilisation rate below 30 per cent is considered healthy. This means if your credit limit is ₹1,00,000, never use more than ₹30,000 of this credit limit to keep your credit profile neat.
3. Track your spending: Monitor all credit card transactions and set usage limits to prevent overspending. This will help you in managing expenses and debt properly.
4. Understand your credit card’s terms: Always check for hidden charges, interest rates, and billing cycles. If in doubt, discuss with your credit card issuing financial institution so that you can make the most of the services provided by them.
5. Spend only what you can repay: Treat your credit card like cash, not a loan, and repay the full balance every cycle. This simple habit will ensure that you use credit responsibly. Use only that amount on your credit card which you can repay without overextending yourself.
By following these simple financial habits, credit card users can avoid falling into a debt trap and maintain a strong credit profile.
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