Over the years, Indians have been averse to credit cards. This is primarily because they believed that spending through credit is a sure shot way of getting into the debt trap. Of course, movies highlighting the sad state of a borrower did not exactly help matters. And even the local kirana shops have the famous lines Áaj Nagad, Kal Udhar (cash today, credit tomorrow).
But in the last decade, things have changed. Families are more comfortable now with home loans, personal loans and credit cards. The ‘new Indian’ is willing to splurge, even if it is on credit. No wonder, the bank credit growth in the last two years have been to the tune of over 25 per cent.
However, in case of home loans/personal loans, one is normally clear about the rates of interest being charged. But spending through credit card is an all together different ball game. With interest rates as high as over 3 per cent month, one actually starts feeling the pinch when one overspends.
