Non-Metro Cities Surpass Metros in Monthly Credit Card Spending

Non-Metro Cities Lead in Everyday Credit Card Usage

  • While metro cities often see high credit card usage for big purchases, non-metros are now using credit cards regularly for monthly expenses.
  • Around 45% of non-metro residents use their credit cards for routine expenses, outpacing 39% in metro areas.
  • This trend highlights a shift in spending habits, with non-metros increasingly leaning on credit for day-to-day financial needs.

Financial Strain in Non-Metro Regions

  • With slower income growth and fewer financial options, 22% of non-metro users reported challenges in paying off credit card bills, compared to 18% in metro areas.
  • The convenience of credit comes with the risk of debt, especially when payments aren’t managed well, which can add financial stress.

Spending on Essentials

  • Rising food and household expenses across India have prompted more people, especially in non-metros, to use credit cards for essentials over luxury items.
  • About 54% of people saw a rise in expenses between ₹10,000 to ₹50,000/month, while only 43% saw similar income growth.
  • This expense-income gap is driving increased credit card use for covering daily costs.

The Savings Gap

  • Savings are also harder to come by in non-metros. Around 35% of non-metro residents reported a decline in savings, while only 26% saw growth.
  • In contrast, metro residents saw more growth in savings (28%). This lack of savings pushes many to rely more on credit cards to bridge financial gaps.

Aspiring for a Debt-Free Future

  • The goal to reduce debt is common among residents across India.
  • 44% of metro and 36% of non-metro residents aspire to clear their debt within the next year, showing a strong desire for financial stability.

Tips for Managing Credit Cards Wisely

  • Use credit only for purchases you can pay off on time.
  • Keep track of monthly expenses to stay within budget and avoid unnecessary debt.
  • Use rewards points on essentials to maximize savings.

In Summary:
Credit cards are becoming essential tools not just for festive shopping, but for managing everyday expenses in non-metro areas too. From groceries to weddings, credit cards offer flexibility—but it’s important to use them wisely for a secure financial future!