Convert dues into EMI or go for a debt consolidation loan

Avoid settling your dues as this reflects negatively in your credit report

- HIMALI PATEL

Credit card delinquencies in the 91-360 days overdue category rose 44.3 per cent year-on-year — from ₹23,475.6 crore in March 2024 to ₹33,886.5 crore in March 2025 — according to a report by CRIF High Mark. These figures indicate growing credit card indebtedness and the need for customers to exercise greater caution while using them.

Minimum payment mindset A major reason for rising credit card non-performing assets is the minimum payment mindset, wherein borrowers pay only 2-5 per cent of the amount outstanding. "According to a report by the Reserve Bank of India (RBI), only 40 per cent of Indian credit card holders repay their full outstanding amount every month," says Inderbir Singh Jolly, chief executive officer (CEO), PL Wealth Management.

Lenders charge interest rates of 36-45 per cent on revolving credit. "Revolving credit without full repayment causes interest to outpace repayment capacity, and leads to financial distress," says Rishabh Goel, cofounder & CEO, Credgenics.