Credit Card Usage Surges as Debt Concerns Grow

Digital payments are gaining momentum in India, accompanied by a significant rise in credit card usage. HDFC Bank, the country’s largest private-sector bank, has stepped up its credit card issuance. Data cited in the report indicate that the bank issued around 1.4 million new credit cards during the three-month period ending in September, marking an increase of nearly 19% over the previous quarter. Monthly spending through credit cards across India averages more than ₹2 lakh crore, with HDFC Bank customers accounting for approximately ₹61,435 crore, or around 30.3% of the total. The number of credit cards in circulation nationwide reached 122.9 million by July.

Credit cards are increasingly being used for shopping, everyday expenses and equated monthly instalments (EMIs). However, spending beyond one’s means and failing to pay bills on time can lead to mounting debt and financial stress. While banks continue to expand their credit card businesses, consumers need to use credit responsibly by assessing their income and repayment capacity. Controlling unnecessary purchases and paying bills on time can help prevent debt from becoming a long-term financial burden.