The demand for credit cards in the Indian banking sector has been increasing in the last few years. In its most basic form, a credit card scheme is a method of obtaining credit through rental transactions in which the cardholder can purchase on credit up to the amount agreed upon with the credit card business by using the card rather than cash. This paper focused on understanding whether credit cards help consumers save or put them under debt. It further built a model that will help detect the defaulters in the real world. The paper adopted a conclusive research design with a questionnaire-based research method and collected data from 184 respondents. The random forest technique was applied to analyze the data. The results indicated that customers who did not manage their funds had high chances of falling into the trap of debt, and there was a strong correlation between variables such as repayment of previous bill, billing amount, and payment of present bills. These variables were found to be relatively stronger together in predicting about the customers.

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