KOLKATA: Children misusing credit cards is a new social malady in city, feel sociologists and psychologists. Counsellors declare they are being incessantly consulted by means of helpless folks on the identical.
"There were at least five recent cases where I have counselled kids, all from affluent families, who have used their parents' credit cards habitually to indulge in online shopping before getting caught. The most recent case is that of a school boy who got into online gambling and the bill ran very high, catching his father's attention," mentioned Salony Priya, a counsellor attached with several city schools and in addition runs her personal centre, Umeed.
Worse, not one of the children did impulsive spending. All instances were pre-meditated and calculated, Priya feels.
Counsellors say affluent folks frequently don't keep a take a look at on their bank card expenses and cross on paying mechanically, frequently asking their place of work assistants to make the payments. Small inflations on their expenses cross not noted. They do not know that their tech savvy children are staring at them and are acutely aware of the spending patterns, CVV numbers on the back in their credit cards and the way one time passwords can be generated.
"Parents give a long rope to kids and perhaps don't mind them shopping with their credit cards as long as it's within their knowledge. But how long does it take for the kids to cross that line?" requested sociologist Prasanta Ray. He feels that the misuse of credit cards by means of children are rampant in India nowadays and Kolkata can't be insulated from it. This is a transparent affect of the West, he feels. "We are aping their lifestyle, aren't we? So it is natural that maladies which bothered their societies will also come to us," Ray mentioned.
Sociologist Abhijit Mitra feels, "Today, parents' leniency has boomeranged and they are becoming the first targets of such kids. Even bullying has assumed such bizarre proportions that schools have ceased to be innocent spaces."
Finance consultants feel it's time that folks turned into more vigilant, since instances have modified and with it aspirations, spending behavior/patterns. "The first best policy is to use add-on cards to limit the cap to a minimum so that the card can't be used for major expenses. The billing cycle should also be addressed to the primary card holder only. Another thumb rule is that if you purchase something using the card, then maximum payment should be made within the billing cycle. One should not get into vicious circle of paying only the minimum amount and heading towards debt trap," mentioned Prasunjit Mukherjee, director, Plexus Management Services.
As a prudent apply, it is all the time really useful to set suitable limits, even on add-on playing cards. It is really useful to keep an eye on amount applied visa-vis the full credit limit on the card, feels an HDFC Bank skilled. Timely payments are vital to care for a healthy credit status. "Your loan repayments should ideally be within 60% of your net take home pay. It's always advisable to pay more than the minimum amount due indicated on your card account. It is a sound practice to issue a standing instruction for repayment in your card account," mentioned Rajesh Kumar, Retail Risk co-head, HDFC financial institution.
COUNSELLOR ADVISE
How to stop children from - Spend more time with children misusing credit cards? - Set suitable limits, - Keep a close eye on their even on add-on playing cards spending behavior - Keep an eye on amount - Keep a take a look at on credit applied vis-a-vis the full card expenses and do not pay credit limit on the card mechanically
There were no less than 5 contemporary instances the place I've counselled children, all from affluent households, who have used their folks' credit cards habitually to delight in on-line shopping
Salony Priya | COUNSELLOR
"There were at least five recent cases where I have counselled kids, all from affluent families, who have used their parents' credit cards habitually to indulge in online shopping before getting caught. The most recent case is that of a school boy who got into online gambling and the bill ran very high, catching his father's attention," mentioned Salony Priya, a counsellor attached with several city schools and in addition runs her personal centre, Umeed.
Worse, not one of the children did impulsive spending. All instances were pre-meditated and calculated, Priya feels.
Counsellors say affluent folks frequently don't keep a take a look at on their bank card expenses and cross on paying mechanically, frequently asking their place of work assistants to make the payments. Small inflations on their expenses cross not noted. They do not know that their tech savvy children are staring at them and are acutely aware of the spending patterns, CVV numbers on the back in their credit cards and the way one time passwords can be generated.
"Parents give a long rope to kids and perhaps don't mind them shopping with their credit cards as long as it's within their knowledge. But how long does it take for the kids to cross that line?" requested sociologist Prasanta Ray. He feels that the misuse of credit cards by means of children are rampant in India nowadays and Kolkata can't be insulated from it. This is a transparent affect of the West, he feels. "We are aping their lifestyle, aren't we? So it is natural that maladies which bothered their societies will also come to us," Ray mentioned.
Sociologist Abhijit Mitra feels, "Today, parents' leniency has boomeranged and they are becoming the first targets of such kids. Even bullying has assumed such bizarre proportions that schools have ceased to be innocent spaces."
Finance consultants feel it's time that folks turned into more vigilant, since instances have modified and with it aspirations, spending behavior/patterns. "The first best policy is to use add-on cards to limit the cap to a minimum so that the card can't be used for major expenses. The billing cycle should also be addressed to the primary card holder only. Another thumb rule is that if you purchase something using the card, then maximum payment should be made within the billing cycle. One should not get into vicious circle of paying only the minimum amount and heading towards debt trap," mentioned Prasunjit Mukherjee, director, Plexus Management Services.
As a prudent apply, it is all the time really useful to set suitable limits, even on add-on playing cards. It is really useful to keep an eye on amount applied visa-vis the full credit limit on the card, feels an HDFC Bank skilled. Timely payments are vital to care for a healthy credit status. "Your loan repayments should ideally be within 60% of your net take home pay. It's always advisable to pay more than the minimum amount due indicated on your card account. It is a sound practice to issue a standing instruction for repayment in your card account," mentioned Rajesh Kumar, Retail Risk co-head, HDFC financial institution.
COUNSELLOR ADVISE
How to stop children from - Spend more time with children misusing credit cards? - Set suitable limits, - Keep a close eye on their even on add-on playing cards spending behavior - Keep an eye on amount - Keep a take a look at on credit applied vis-a-vis the full card expenses and do not pay credit limit on the card mechanically
There were no less than 5 contemporary instances the place I've counselled children, all from affluent households, who have used their folks' credit cards habitually to delight in on-line shopping
Salony Priya | COUNSELLOR
Misuse of credit cards invites trouble for kids
![Misuse of credit cards invites trouble for kids]()
Reviewed by Kailash
on
February 24, 2018
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