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Credit cards: Friend or foe? Smart use makes the difference
India's ₹2 lakh crore credit card market is growing fast. Experts say the tool itself is neutral, how you use it decides if it's a reward or a debt trap.
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Credit cards have become a fixture of modern financial life, offering convenience, rewards, and short-term credit for everything from online shopping to travel bookings and emergency expenses. But the same tool that can be a financial ally can also become a debt trap, depending entirely on how it is used.
"The cause of the problem lies not in the card itself but instead relates to the irresponsible financial behavior we practice," said Mukesh Pandey, founder and managing director of Rupyaapaisa.com. "India's use of credit cards crossed ₹2 lakh crore in May 2026, which indicates that the plastic card has already become a common part of our spending habits."
Pandey warned against impulsive purchases, late payments, cash withdrawals, and the continuous accumulation of debt. "A credit card is a payment instrument and not something people use to borrow money," he said. "In case a credit card holder makes his or her payments in a timely manner, the card proves to be an extremely effective means of getting rewarded."