CREDIT CARD USAGE BEHAVIOR AND ITS IMPACT ON PERSONAL FINANCIAL PLANNING IN CHENNAI

Abstract

This look explores the connection between credit card usage conduct and its effect on personal economic making plans among customers in Chennai, Tamil Nadu. With the growing penetration of credit scorecards in city India, expertise on how customers manage credit scores and its effect on their financial functioning has grown to be increasingly more critical. The studies investigate key factors influencing credit card usage, inclusive of spending patterns, repayment habits, recognition of interest quotes, and promotional offers. It also examines how these elements affect personal economic planning, especially in budgeting, savings, and debt control. A structured survey was carried out amongst 400 credit score cardholders in Chennai, with the use of stratified random sampling to make certain demographic diversity. Data evaluation changed into performed using statistical tools to pick out extensive correlations between credit score card behavior and economic planning outcomes. The findings reveal that impulsive spending and minimum cognizance of hobby costs extensively impact financial stability, even as strategic utilization, inclusive of leveraging reward points and timely repayments, contributes to monetary making plans. The observation concludes with guidelines for banks to enhance economic literacy packages and design patron-centric credit scorecard guidelines. These insights are treasured by clients, economic planners, and policymakers in selling responsible credit utilization and improving personal monetary management.