Credit Purchases Rise - Festive Season
This festive season, banks and financial institutions have a reason to be worried as many Indians opted to pay for their festive shopping by means of Credit Cards. The number of transactions by means of plastic money went up by 20% this festive season in absence of other financing modes like persona loans or white goods consumer loans provided by Citi / GE Money.
R.L.Prasad of Standard Chartered said,
Rising interest rates and double digit inflation has left lower disposable income in the hands of Indian consumer which has made them to go the Credit Card route. Also people wouldn't want to part with their cash reserve nest in uncertain times.
Future Group [Pantaloon, Central Mall, Big Bazaar etc] and Spencers retail have confirmed the higher usage of plastic money at their stores during this festive season.
R.L.Prasad of Standard Chartered said,
Cards usage typically grows during the festive season starting from September. It is important to constantly monitor spends and take appropriate action to prevent defaults.ICICI Bank the largest issuer of credit cards said that it was not worried since it was catering to existing customers with good credit history. What a Joke ?
Rising interest rates and double digit inflation has left lower disposable income in the hands of Indian consumer which has made them to go the Credit Card route. Also people wouldn't want to part with their cash reserve nest in uncertain times.
Future Group [Pantaloon, Central Mall, Big Bazaar etc] and Spencers retail have confirmed the higher usage of plastic money at their stores during this festive season.
Published by CardBhai @ 11:33 AM
1 Reader Comments
1 Comments:
I truly hope everybody in India (esp. metropolitan areas) reads your blog and sees how dangerous credit cards become when people use them to pay for things they cannot afford. People buy buy buy on these cards and then get angry when they have to pay high interest charges (which add up to much more than what the original item costs). Simple mantra: Don't buy what you can't afford.
It baffles me that people are shocked or surprised when they are hit with late charges, etc. COME ON WHAT DID YOU EXPECT PEOPLE? That the banks just lend you free money with no expectation of getting paid back?
I know that many people are new to credit cards, want to have what their friends have or what they see on TV.. They see cards as a way to achieve their dreams... Dreams achieved with mountains of debt are just pipe dreams... Please for your own sake and for India's future, do some basic research! There is no such thing as easy money or a free lunch. Although the share and real estate market of the last 4 years have literally allowed people to become rich overnight, it cannot be sustained. We should always follow basic economic principles in life, whether we are up or down.
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