Managing consumer debt during the festive season requires strategic planning and disciplined spending to avoid financial stress. With the allure of discounts and special offers, setting a realistic budget for gifts, travel, and celebrations is crucial to prevent overspending. Financial experts suggest avoiding essential expenses, using credit cards cautiously, and understanding loan terms to ensure responsible borrowing. Amit Bansal, Founder of BharatLoan, emphasizes the importance of planning and sticking to a budget. At the same time, Anand Agrawal, Co-Founder & CPTO of Credgenics, advises using technology for timely payments and considering debt consolidation to simplify financial obligations.
Smart strategies for a stress-free festive season
Budget wisely
“Careful planning and responsible financial strategies are essential for managing debt during the festive season. Focus on essential expenses and avoid overextending yourself with debt that’s hard to repay,” advises Amit Bansal, Founder of BharatLoan.
Use credit cards cautiously
“Pay off credit card balances quickly to minimize interest and penalties. Despite planning, some expenses might necessitate borrowing,” says Anand Agrawal, Co-Founder & CPTO of Credgenics.
Understand loan terms and leverage technology
“Know the terms of any loans, including interest rates and repayment schedules. Use technology for payment reminders and automatic transactions to stay on track,” recommends Amit Bansal, Founder of BharatLoan.
Choose low-interest options and prioritise needs
“Understand loan terms, select low-interest options, and create a clear repayment plan. Communicate financial limits with family and avoid impulse purchases,” advises Anand Agrawal.
Consolidate debts and plan ahead
“Consider consolidating existing debts to simplify obligations and potentially reduce interest costs. Plan ahead, borrow only what you can manage, and maintain disciplined repayments,” suggests Amit Bansal.
By implementing these strategies, you can enjoy a financially stress-free festive season.
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Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
