COVID has been disastrous for Individuals who work for businesses heavily involved in sectors like travel, tourism and entertainment. They have felt the impact most directly with loss of bonus and other incentive pay often followed by temporary or permanent job loss. As the economic contraction turns into a longer-term economic recession, one can expect high unemployment figures to continue, along with lower salaries as more job seekers compete for fewer available jobs.
This is bound to have an impact on one’s levels of debt, especially on credit cards. If you have available credit on your credit cards, and you need money, you may want to use your credit card limit and make minimum amount due payments (rather than pay the card dues off in full). But credit cards typically charge very high interest rates. This increase your outflow and also increases your card limit utilization ratio. This can decrease your CIBIL score.
The credit utilization ratio plays a