New Delhi, Oct. 9 -- As we build up to Diwali, banks and financial institutions are witnessing a surge in the use of credit cards for meeting day-to-day expenses. Still, it is vital to carefully understand credit cards as borrowing tools so that efficient decisions can be made.

In August, credit card spending reached Rs. 1.91 trillion, a 13.7% year-over-year increase from Rs. 1.68 trillion in August 2023, although marginally lower than July's Rs. 1.93 trillion. On a broader annualised basis, spending reflected a 28% year-on-year growth, underscoring strong momentum in retail consumption.

Anand Agrawal, Co-founder & CPTO, Credgenics, highlights how festival excitement can easily blur financial discipline.

"The festive season often bring...