Oh my God! 70% discount offer! Riya’s brown eyes got enlarged with the high level of exclamation. She was browsing online to make the best use of festive discounts. Amazon, Snapdeal, Flipkart, and many other e-commerce sites were tempting her.

The festive season is about to end, but not the sale and discount offers. With the variety of options available in the market, getting the desired thing has become very easy. Financial flexibility has made this, even more, convenient. Credit Cards, Mobile Wallet, Instant Loans are the options that people are availing to get instant finance. This trap is so beautiful and tempting that people make unknowingly financial mistakes to do unlimited shopping.

 

Festive Shopping Debt Traps

 

Traps for you: Credit Cards, Consumer Loans

You can easily commit mistakes while making your financial decisions. In festive season, you may want to do shopping like electronics gadgets, Home Accessories, etc. You can earn heavy discounts. Let’s take an example. Assume that you are earning 40,000 per month, and you want to buy a fully automatic washing machine that will cost you around 70000 rupees.  You are planning to take consumer loan to buy it as it is offering you a great discount. So for 1 year you will take a loan and pay an EMI of 6219 rupees at 12%. The bank will charge 2% processing fees also. So the total amount you will pay 76,028 rupees (6219*12+1400) at the end, thus paying more to avail the discounts. If you are paying any other EMI of Car Loan or Home Loan, you will realize that 60% of your salary is getting used in terms to pay the loans.

If you miss any EMI or any credit card due, you can screw up your CIBIL Score. Any wrong step can lead to a bad credit score. In future, you may not get any financial help from the banks if your financial health is bad. Your loan application can get rejected.

 

Avoid These Traps-Plan and then Shop:

You can avoid getting into these traps by planning your shopping. Make a list of things that you need and want to buy in this festive shopping. Only buy your wish-list, don’t get tempted by discounts and offers. Always take a look at your finance. Try to pay by cash and Debit Cards.

Avoid using the credit cards. Make a list of items that you want to purchase on credit cards.

By considering the small points of your financial health, you can enjoy the festive shopping season. Look around for the best options. Shop smart and live smart.

Read more to enhance your knowledge:

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Which Credit Card suits you?

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