New Delhi: I’ve been watching the numbers, and honestly, they’re unsettling. We’re in the middle of a credit card explosion, but it feels less like progress and more like a pressure cooker.
“Think about this: We’ve added a staggering 76 per cent more credit cards in just four years.In August 2025 alone, banks issued nearly 700,000 new credit cards, a seven-month high. That’s over 11 crore cards in people’s wallets today. But here’s the real kicker: the outstanding debt on them has doubled to Rs 33,886 lakh crore.”
And now, the cracks are showing. Defaults payments overdue by more than 90 days have shot up by 44 per cent in a single year.
This isn’t just about more people spending. It’s about an alarming inability to pay.
What’s driving this? On one hand, credit card spending is at an all-time high. On the other, household savings have crashed to historic lows. For many, the plastic isn’t for luxury purchases anymore. It’s for basics: rent, groceries, school fees. This isn’t financial inclusion; it’s survival financed at 40 per cent+ interest.
Banks are making it incredibly easy to fall into, with slick EMI conversions, “no-cost” offers, and irresistible cashbacks. They make debt feel convenient “Rs 2,000 per month for a 65-inch TV” deal? You’re paying Rs 60,000 for a Rs 48,000 TV. Credit cards charge 40 per cent+ interest if u miss a payment and you’re trapped. The minimum payment cycle is a devilish design it keeps you afloat just long enough for the interest to bury you.
If this pattern feels familiar, it should. We saw it play out with devastating effect in the US before 2008 and in South Korea in the early 2000s. Rampant, unmanageable consumer debt doesn’t just strain wallets; it can strain the entire economy.
The writing is on the wall. So, what do we do?
As individuals, the shift has to start with us:
1. Stop seeing your credit card as free money. It’s the opposite it’s the most expensive money you’ll ever borrow.
2. Attack your card debt aggressively. If you have outstanding dues, make it your number one financial priority to clear it.
3. Live within your means. The oldest rule in the book is the most important. If you can’t afford to pay with cash or your debit card, you probably can’t afford it.
And for regulators? It’s time for stricter oversight. We need caps on punishing interest rates and a crackdown on predatory lending practices.
But real change begins with a mindset shift from chasing rewards to valuing financial peace. From fuelling our present with borrowed money to building our future with disciplined savings.
This isn’t just about personal finance anymore. It’s about our collective economic health. Let’s break the cycle before it breaks us.
let’s also remember and discuss about Credit score soon
What are your thoughts? Are you seeing this play out around you?
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