Debt management getting fiscally fit

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: fact that they have held other credit cards so they cannot check their credit rating with us.

The consumer is often desperate too, as he uses one card's credit to pay the bill of another and tries to play around for as long as he can. The banks too share blame, for many banks issue credit cards to people, on the sole basis of the fact that they already own a credit card. However, such situations often turn out to be lose-lose situations for the customer and the bank”

The numbers of credit cards in India are over 30 million. This is thrice as much as they use to be 5 years ago, which only goes to show the sudden boom in this area. The amounts of unsecured loans and credit card defaults, which are over three months overdue, have risen to 15% of the total loans outstanding. This is a jump from the average 7-9% reports Crisil Ltd. The banking industry that has been reeling under the strain of bad debts are too approaching a cautious tone towards loans and credit now, having suffered the first backlashes of their haste this quarter. While the trap had been laid wide open, with warning signs shouting “Danger” and “Do not enter” for miles in each direction, we Indians who sometimes pride our wits to the extent of over smartness, walked right into it. How can we be as silly as Americans too live a life of debt burdens, loans and mortgages? How can some financial suits in a big bank swindle us? Well, the fact remains they did. They gave you money you didn't have and hadn't earn and at times didn't even need, only to spend it on buying goods flooding our malls, which too have originated from all over the world and all this we lapped up without a whine. Now, when we find ourselves backed up in a corner, the question isn't really about who out smarted whom, but who learnt the fastest.

No such thing as an easy loan