Credit Cards Transactions Shoot up by 29%

Credit Card Transactions Shoot up by 29% in 2010

This year in India, the Credit card transactions shoot up by 29% to Rs. 6259.42 Crore from Rs.5817.46 Crores in the past year. But during the same time the number of credit card holders in India has also been declined by 14% to just 1.89 Crores from 2.19 Crores past year.

Many people think that credit cards are for rich people and that’s why they buy a credit cards. But well, let me tell you that not the all kind of expenses that you make from your credit cards are the good expenses.

If you can’t control your psychology of spending more money than simply cut down your credit cards and replace them with the debit cards. This is because I have personally seen many people who are deep in the credit card debts up to their eyeballs.

I personally use Debt card rather than credit cards for regular use. For online transactions, I have my own credit card but that I use only for the transactions for my this blog business only.

There are basically two types of Credit card debts – A Good debt and a bad debt. If you are borrowing money from your credit cards to finance the assets than its a good debt but if you are borrowing money from your credit cards to finance the liabilities than well, its a bad debt which may make you bankrupt someday.

This is because the credit card interest rates are very high (35-50%). So use credit cards but only to finance assets and not the liabilities and always do the bullet payment of your credit card outstanding to avoid higher interest rates.