REPAYMENT & DEFAULT LIKELIHOOD IN CREDIT CARD USER TYPES IN INDIA

Debt traps have become a real problem in the 21st Century. The total US consumer debt is at 13.86 trillion US $ as of 2019. In this paper using a logistic regression model, we aim to cover areas of consumer spending habits that is to analyze the areas where consumers spend using a credit card, credit card debt repayment patterns to find patterns in consumer repayments of credit card bills. Using this data, we attempt to find the correlation between variables that demonstrate the rate or probability of failing to repay credit card dues with other variables like credit limit, income, family information, etc. This information can be used by banks and other financial institutions to predict which of their customers may potentially be a bad debt, therefore allowing the banks to take preventive measures in advance. Consumers can also use this model to see where and how they spend their money and how close are they potentially falling into a debt trap, allowing them to take measures accordingly