The consumer culture has been gripping India and easy access to credit facility is one of the causes of overspending. This overspending many a time is the reason for the mismanagement of the personal finances and thus creates pressure on investment management of individuals. The primary objective of this study is to investigate the effect of irresponsible use of credit card on compulsive buying among Indian consumers on their personal finances. A survey was conducted to collect the needed data in the cities of Delhi and Hyderabad. A Sample of 250 shoppers in the shopping malls like Shoppers' Stop, Lifestyle, Food World, Q-mart and other retail stores was selected for the study. After a detailed literature survey, the hypotheses were developed. Scientific scale to measure the compulsive buying behavior among Indian consumers was used. To measure the irresponsible use of credit card, another scale was used which was pre-tested using a pilot survey. The discriminant analysis using the primary data reveals that use of credit card is the significant variable that is associated most closely with compulsive buying behavior followed by anxiety attitude, income and power and prestige attitude in that order.

The outcome suggests that irresponsible use of credit cards facilitates the compulsive buying behavior that ultimately is the cause for the mismanagement of personal finances.With the advent of globalization and privatization, the concept of credit cards is gaining popularity. Customers no longer have to carry huge sums in their wallet. Further, in most of the developing countries, people perceive the card as a status symbol. The attitude toward money also has a role toward compulsive buying as revealed by many researchers. Money Attitudes Yamauchi and Templer (1982) identified four dimensions of money attitudes: (1) Power prestige, (2) Anxiety. (3) Retention time, and (4) Distrust. Power Prestige Persons dominant on this attitude use money as a tool to influence and impress others and as a symbol of success. To many people money means power and status, means to buy control and domination. The process of moving ahead materially without any real gain in satisfaction has been termed the treadmill of consumption (Bell 1998). Anxiety Persons high on the anxiety factor perceive money as a source of protection from anxiety. Compulsive buyers react to stress with higher levels of anxiety than do non-compulsive buyers. Compulsive buying is viewed as a quick fix for anxiety.Astous and Trembly (1989) found that ‘compulsive buyers’ were more likely to associate with social status. Roberts (1998) and Roberts and Martnez (1997) have found a positive relationship between the social status associated with buying and compulsive buying. Elliot (1994) found that one of the primary functions of compulsive buying is to increase the compulsive buyer’s ability to match his or her subjective perceptions of socially desirable or required appearances. Thus, the use of money as a tool of power and prestige has the potential to lead to compulsive buying.

Credit facility, overspending, personal finances, investment management, Indian consumers, Shoppers' Stop, Lifestyle, Food World, Q-mart,retail stores,literature survey, Scientific scale,pilot survey anxiety attitude, income,Power prestige, Anxiety, Retention time,Distrust.