Credit Card EMI/SIP: More Risks, Fewer Benefits; Choose Safer Financial Paths

• Young professionals increasingly use credit cards for EMI, SIP, and insurance payments, beyond just shopping.
• Experts warn against using credit cards for investments, labeling it a "debt-funded investment trap" with high risks.
• Risks include 36-48% annual interest on revolving credit, compounding interest on missed payments, and severe damage to credit scores.
• SEBI prohibits credit card payments for SIPs to prevent debt-funded investments, as this practice can lead to overspending and poor financial discipline.
• Safer alternatives for EMIs and SIPs include debit card EMIs, consumer loans, BNPL apps, and direct bank mandates.

Why It Matters: Using credit cards for EMI/SIP is risky, leading to high debt and credit score damage.