“Congratulations! Your credit card limit has been increased from ₹1,50,000 to ₹3,00,000.”
I used to get these messages too. At first, they felt good. On Twitter I saw people flaunt their screenshots, and I felt the same rush of pride when my own limit went up when I used to have a bunch of credit cards. It looked like a reward, as if the bank had stamped me as trustworthy and successful.
But I know better now.
These messages are not rewards. They are traps dressed up as celebrations. I realised this only after I surrendered all my credit cards. That was when the confessions started coming in. People wrote to me saying the very increases they once celebrated had slowly buried them in debt.
I could see the pattern in their stories, and in my own past too. The higher the limit, the higher the balance. Pride turned into anxiety. Excitement turned into regret. What felt like recognition was simply a push to spend more than we should have.
Today, when I see those cheerful messages, I no longer smile. I see them for what they are: an opening into debt, hidden behind balloons and confetti, carrying a weight that can crush years of effort.
The Game Banks Play
Banks know exactly what they are doing.
They frame a limit increase like a reward. They write to you with congratulations, as if they are on your side. In truth, it is a calculated strategy. Every time your limit rises, your chance of borrowing more rises with it. And with that comes more interest and more fees.
I used to think I was special when my limit was raised. In reality, it was the bank’s way of pulling me deeper into their system. And I was not alone.
RBI data shows that outstanding credit card balances in India crossed ₹2.9 lakh crore in mid-2025, up from ₹2.67 lakh crore a year earlier. That is a jump of more than ₹23,000 crore in twelve months. Behind these numbers are millions of people who accepted their higher limits and ended up using them.
Banks celebrate us only because it helps their bottom line. The more we borrow, the more they earn.
Why We Celebrate
I have asked myself this many times. Why do people flaunt these messages on Twitter? Why did I feel so proud myself?
The truth is that a higher limit feels like validation. It feels like the bank sees you as important, that you have moved up a level. In a culture where money and status are linked, that is powerful. For a while, I too thought of it as progress.
But a limit increase is not progress. It is only more rope. And many of us, without realising, use that rope to tie ourselves down.
How Debt Creeps In
It never happens in one day. It starts with small upgrades. A holiday you justify because the limit allows it. A new gadget that you convince yourself you deserve. Slowly, the outstanding grows. And once it grows, the minimum due becomes your only way to cope.
I have seen this story repeat in many messages people sent me after I gave up my cards. They wrote about nights without sleep, staring at bills they could not pay. They wrote about paying the minimum due every month while the interest kept piling up.
The numbers explain why. Credit card interest rates in India are often 40 percent or more annually. At those levels, even ₹50,000 carried forward can double in a short time. No salary hike can keep up with that pace.
RBI reports show that delinquencies in the 91 to 180 days overdue category rose to 8.2 percent by March 2025, up from 6.9 percent a year earlier. Even longer overdue debt also rose. These are not random figures. They are the lived experiences of people who once celebrated a higher limit and now struggle to escape its cost.
The Real Price
The real damage is not only in numbers. It is in trust broken, in families stretched, and in health ruined by stress.
One friend told me that his higher limit allowed him to spend on his child’s education and holidays at first. But when he could not repay, it turned into months of phone calls from collection agents. Another person wrote that every rupee she earned began going to the bank, leaving nothing for her own savings.
This is the part that nobody posts on Twitter. The screenshots of higher limits get likes. The screenshots of debt balances never appear.
Why It Keeps Happening
I believe it continues because three powerful forces are at play:
- Banks want it. They frame the increase as a celebration, but it is designed to pull you deeper.
- Technology makes it easy. With one tap on an app, a larger limit appears and spending becomes seamless.
- Society rewards it. When people flaunt their limits online, it creates pressure to see it as success.
Together, these forces are stronger than most people’s discipline. That is why even those who know better can still fall.
What I Now Do
When I get messages about higher limits, I ignore them. I do not celebrate. In fact, I no longer keep credit cards at all. That decision freed me in a way I had not felt in years.
For others, the advice I share is simple. If you struggle with repayment, decline the increase. You can call your bank and opt out. If you accept it, use it only as emergency backup. Budget as if your limit never changed. True financial success is not measured by how much you can borrow. It is measured by how little you need to.
Closing Thought
A credit limit increase is not applause. It is not proof of trust. It is not progress. It is an invitation into debt, disguised as a gift.
I learned this lesson the hard way, and I have seen many others learn it too. My plea is simple. The next time your phone buzzes with a message that your limit has been raised, pause before you smile. Ask yourself who really benefits. Ask yourself if you want to carry that weight for years.
Because the truth is, balloons and confetti fade quickly. Debt does not.
Author Note
Note: This article relies on data from fund reports, index history, and public disclosures. We have used our own assumptions for analysis and illustrations.
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my current or past employers.
Parth Parikh has over a decade of experience in finance and research. He currently heads growth and content strategy at Finsire, where he works on investor education initiatives and products like Loan Against Mutual Funds (LAMF) and financial data solutions for banks and fintechs.