Retail Consumer Credit Finance Trap

We have increasingly noticed that Indian consumers are BUYING goods [White Goods, Mobiles, Furnitures etc] on EMIs or some on credit cards. One has to be really very careful when going for such a scheme of financing.

Many people have bought homes and apartments at unreasonable prices [They are down now, can’t help it] To furnish your dream home, you literally don’t have the deep pocket and hence opt for EMI. They sell the EMI at 0% or very low APR and we blindly sign. The trap is, if you default on one, then your APR skyrockets which will open your doors of misery. So be very careful about this.

Next, we have witnessed that about half of the mobiles purchased in Malls or Shop-in-Shops are being paid by Credit Cards. Sure if you are a regular bill payer who pays off his entire credit card bill every month, then you don’t worry. But their are few, who spend their future earnings potential today. Friends, we advise caution, be the most miserly miser and carefully plan your finances. Credit Card companies in India are the worst in the World and hence you’ve gotta be really really careful else they will rip you off.

Never BUY a Mobile Phone on Credit Card EMI or Personal Loan, unless you really have a deal that is with 0% or less than 5% APR per annum [not per month]

Comments, Questions and Suggestions are welcome to feedback @

Leave a Comment