Finance·Original Research Articles
Abstract
The global financial system has undergone a major transformation from a predominantly cash
based economy to a credit-driven and digital economy. Among various financial instruments,
credit cards have emerged as one of the most widely used tools for facilitating transactions.
Initially introduced to enhance convenience and security, credit cards now play a central role
in shaping consumer spending behaviour, lifestyle choices, and financial decision-making.
Credit cards offer several benefits such as cashless transactions, deferred payment options,
fraud protection, reward programs, and access to short-term credit. These features make them
attractive to consumers across income groups, particularly in urban areas. However, the same
features that provide convenience can also weaken personal financial discipline. Deferred
payment, high credit limits, and reward-driven spending may encourage impulsive purchases,
excessive borrowing, and accumulation of highinterest debt.