Credit card usage increases during festivals. Special schemes on e-commerce, extra discounts on credit cards as well as festival mood play a role in this. Moneycontrol’s data analysis has revealed that during festivals, credit cards are used six times more than debit cards on online platforms. This means that people make more purchases with loan money during festivals. Many times this purchase becomes costly. We get caught in a debt trap from which it becomes difficult to get out.
Use credit card carefully during festive shopping.
Experts say that Credit Card Makes your shopping easier. Shopping through this also provides benefits like discounts, cashback and rewards. But, carelessness in use can create financial problems for you. Therefore, this time during festivals you need to be careful while using credit cards. There are many big festivals this month. These include Dhanteras, Diwali and Chhath.
Banks charge very high interest on credit card balance bill.
Credit card companies or banks charge high interest on the balance if the bill is not paid in full. It ranges between 35-48 percent annually. Late payment fees are also imposed in case of delay in payment. Flipkart SBI Credit Card charges 3.75 percent interest every month. This comes to 45 percent annually. Experts say that these things are not in the user’s mind at the time of purchase. Many times during festivals we buy things which we do not need. Experts say that at least we should try to avoid purchasing such things on credit cards.
Credit card bills become a big problem when they get out of control.
Once a credit card bill goes out of control, it creates a big problem. Every month the user keeps making partial payments. In such a situation, he spends a lot of money on interest. “To avoid overspending, you should keep tracking unbuilt balances. You should only purchase up to the amount that you can repay by the due date,” says Harshil Morjaria, certified financial planner at Value Curve Financial Services.
Credit card users are also in danger of getting trapped in the debt trap.
He said, “If a user’s credit card bill is Rs 50,000 and he pays only the minimum due amount every month, then it will take him about 9 years to repay this debt.” The easiest way to avoid falling into this debt trap is to pay off the entire credit card bill in one go. If we cannot pay it in one go then we should pay it in two. With this, there will be no danger of you getting trapped in the date trap.
Check unbuilt purchases before shopping
Therefore, check the unbilled purchases of your credit card today itself. Check that if needed and up to what amount it can be used for purchases. Experts say that most users do not remember about their unbuilt purchases. With this he makes new purchases of large amounts. But, when the bill arrives he is surprised. Experts say that a little caution this festive season can save you from getting trapped in debt.