A STUDY ON MULTIFACETED CHALLENGES OF CREDIT CARD USAGE

The findings of this study indicate that credit card usage, although beneficial for convenience and short-term financial flexibility, is associated with several significant challenges that affect users both financially and psychologically. The analysis demonstrates that factors such as interest rates, hidden charges, and late payment fees have a strong and positive relationship with users’ stress levels. Among these variables, interest rates exhibit the strongest and most consistent association with stress, suggesting that higher borrowing costs place a substantial burden on users. Hidden charges, while slightly less consistent, contribute to unexpected financial strain, often leading to dissatisfaction and mistrust. Late payment fees further intensify this burden, particularly for individuals who face difficulties in managing repayment timelines. The regression results reinforce these observations by showing that all three factors significantly influence stress levels, with each variable contributing positively to the overall financial pressure experienced by users. The high explanatory power of the models indicates that these financial components are key determinants of user stress in the context of credit card usage.Additionally, the study highlights the role of financial awareness as an important underlying factor. Users with limited understanding of credit card terms and conditions are more likely to incur additional costs and experience higher levels of stress. In conclusion, the challenges associated with credit cards are not limited to financial costs alone but extend to behavioural and knowledge-related aspects. Enhancing financial literacy, improving transparency in fee structures, and promoting responsible usage can help mitigate these issues and enable users to make more informed financial decisions.

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