Millennials fuel surge in credit card defaults as e-commerce drives debt

The increasing allure of Buy Now, Pay Later (BNPL) schemes and easy e-commerce instalment purchases is propelling young millennials into a credit card debt spiral. According to data from TransUnion Cibil, credit card defaults have risen from 1.6 per cent in March 2023 to 1.8 per cent by June 2024. Although this may seem marginal, the amount of outstanding credit card dues has skyrocketed to nearly Rs 2.7 trillion by June 2024, compared to Rs 2.6 trillion in March 2024 and just over Rs 2 trillion in March 2023, reported The Economic Times.