Diwali is a time of celebration, shopping, and gifts—but overspending on credit cards can lead to stressful debt in the new year. Here are five hacks to use credit cards wisely and enjoy a worry-free festive season.
1. Set a Festive Budget
Determine how much you can safely spend on gifts, shopping, and celebrations.
Stick to a pre-set credit limit to avoid impulsive purchases.
Use credit card tracking apps to monitor your Diwali expenses in real time.
2. Opt for Reward and Cashback Cards
Use cards offering Diwali-specific rewards, discounts, or cashback.
Pay attention to category-based rewards, e.g., grocery, electronics, or jewelry.
Redeem points immediately or within the festive period to maximize value.
3. Avoid EMI for Non-Essential Purchases
Converting purchases into EMIs may seem convenient but accumulates interest over time.
Only consider EMI for high-value essential items you can repay comfortably.
Avoid using multiple EMIs simultaneously, which can strain your budget.
4. Pay Full Credit Card Balance On Time
Avoid carrying forward balances post-Diwali. Interest rates can exceed 30% annually.
Schedule automatic payments to clear dues and avoid late fees.
Paying in full ensures reward points do not get offset by interest charges.
5. Track and Limit Festive Splurges
Track each swipe using banking apps or UPI-linked statements.
Stop using credit cards once you reach your budget cap.
Encourage family and friends to plan group purchases mindfully to prevent overspending.
FAQs:
Q1. Can I use multiple credit cards during Diwali?
A1. Yes, but ensure you track spending and pay full balances to avoid interest and debt accumulation.
Q2. Should I convert purchases into EMI to manage expenses?
A2. Only for high-value essential items; avoid EMIs for non-essential purchases to prevent long-term debt.
Q3. How can I maximize rewards this Diwali?
A3. Use cards offering cashback, festive discounts, or category-based rewards, and redeem points promptly.
Q4. Is it safe to swipe for all festive shopping?
A4. Yes, if you stick to your budget, pay balances in full, and avoid overspending.
Q5. How do I track Diwali credit card expenses effectively?
A5. Use banking apps, UPI statements, or credit card tracking tools to monitor each purchase in real time.
Published on : 22nd October
Published by : SMITA
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