What About Living On Credit?

Asking a financial planner this question will get you a standard answer --it's never a good time to be living on credit. "Borrowing is nothing butspending a future unearned and uncertain income today and that is alwaysdangerous," emphasises Gaurav Mashruwala, financial planner. 

However, to add to that, the key word in that quote is uncertain. There's nodoubt about the fact that we live in uncertain times. 

While one can argue the merits of living on credit for larger assets likehouses which create long term value, the logic in exhaustive spending on acredit card, for instance, in times like these is flawed. Most banks havealready increased interest rates on credit cards and are currently seriouslyworried about rising non performing assets arising out of non payment of cards. 

Rising costs of living, EMIs and the uncertainty in the job market make itprudent that you apportion funds accordingly. Spending and that too on a creditcard, especially if you can't pay it within the credit cycle is definitely a badidea.