People are getting ruined due to credit cards, paying bills by taking loans.

Credit Card: In increasing the CIBIL score for online shopping and loan, credit card is very beneficial for the working people as well as the common man, but many people are getting ruined due to this credit card. The number of defaulters who delay in paying bills after making credit card purchases in the country is increasing exponentially. The situation is that people who made huge purchases through credit cards are now taking loans from banks to pay the bills. There is also news that those who are not able to pay the bills are also facing lawsuits.

Credit card default cases increased by 1.8% in the country

According to a report by Navbharat Times, credit card default cases increased by about 1.8% in June 2024. It was 1.7% in January 2024 and 1.6% in March 2023. It has also been said in the report that credit card holders are even taking personal loans for minimum payment. Due to this, their financial condition is becoming worse than before. After being declared a credit card defaulter, his CIBIL score is getting weakened and his health and reputation are also being deeply affected.

How to become a credit card defaulter

It has been said in the report that in fact, people purchase goods worth huge amounts through credit cards. They think that they will pay this amount in installments. Initially they make big purchases, but this outstanding amount increases at the rate of about 48% annually. Then problems start arising in making payment. After this, the person purchasing with credit card reaches such a situation that he is able to make only the minimum payment. Many times a borrower gets trapped in the quagmire of debt by taking small personal loans to make minimum payments. If even the minimum amount payment on the credit card bill is not made for several months, then the person becomes a credit card defaulter.

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Guilty for failing to pay credit card bill

Now if a credit card holder fails to pay the bill for 30 days, his credit card account first goes into delinquent category. After this, after remaining in delinquent category for six months without any minimum payment, the account becomes default. If there is a delay in payment, the bank contacts you to understand your financial situation and even then you do not make the payment, then your account is closed. After this the bank sends the credit bureau non-payment report, due to which the credit score becomes negative. After bad credit score or CIBIL, it becomes difficult to take a loan or get a new credit card in future.

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There may be a lawsuit for not making credit card payment

Government and private banks of the country have hired agencies to recover the outstanding amount of credit card or any loan. If you have not paid your credit card bill for a long time, then these agencies harass you by calling you daily. If you stop receiving the phone, a notice will be sent to you. This notice will be sent to your work or home address. If payment is not made even after this notice, banks or credit card issuing companies can take legal action against you. For this, a case is also filed in the court or police. In major cases, the bank may even file a criminal case against you for fraud.

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