Buying things on debt, equal monthly installments, EMI, festive session, saving money, future earnings, credit score, how to manage debtBuying things with debt may give you instant gratification, but it imposes an obligation to pay the amount out of future earnings.

Buying things with debt may give you instant gratification, but it imposes an obligation to pay the amount out of future earnings. Therefore, buying something with debt or in equal monthly instalments (EMI) may seem affordable, but getting used to doing so can put huge financial stress on you in the future.

In such a case, any disturbance in future profits may lead to bankruptcy.

Even if you can stay afloat, too many EMIs can put severe limits on your ability to spend in the future, even on essentials.

Therefore, it is important that you limit your desire and spend within your earning limits to ensure that you have the ability to spend during the festivities to bring happiness among your loved ones and loved ones.

“While your debt shouldn’t define who you are, it certainly has a huge impact on your finances. Especially with the holidays approaching, it is tempting to lose track of your final financial commitments and hamper your credit score,” said Nitin Mathur, CEO of Tavaga Advisory Services. by overspending on material items.

Speaking about how to properly manage your finances, Mathur said: “To manage your debt effectively, the first step would be to maintain a strict budget and save for an emergency fund in order to meet your financial obligations on time. It is also crucial to define an appropriate and appropriate debt repayment strategy, such as The “snowball method”, where the smallest debt can be paid off first, the “avalanche method”, where the largest or highest interest rate debt can be paid off as quickly as possible, or the “debt consolidation method”, where all debts can be combined into one account To pay it off easily. You should also set up monthly bill payment reminders which will not only save you time but also help you save a significant amount of money.”

Consumers are on a buying spree this holiday season, many are choosing to pay later

Giving his views, Manikanta Racharla, Head of Growth and Co-Founder at, said, “For some, ‘religion’ is like a four-letter word, but for others, that word is synonymous with burden — and you can’t avoid it. But with Celebrations approaching, we don’t want to burden ourselves with debt and EMI.”

Racharla lists some steps on how to break free strategically from this rut ​​-

  • Savings Saver: This is the first source to consider. Start paying off the loan with the highest interest.
  • Monotheism Be smart and combine all debts into one loan – and enjoy lower interest rates on higher amounts.
  • Reducing the duration of your loan, and the EMI amount will decrease automatically.
  • Extra payments: Ditch the usual EMI concept and benefit from prepayments. why? Because as the principal amount goes down, the amount of interest also goes down.

Speaking on how to manage debt, Anil Binabala, CEO and founder of Vivifi India Finance said, “Personal finance is an important aspect of our life and how we plan for it affects all other factors related to it.”

“Timely repayment is key to a good credit score, and this again is critical for any future loan needs you may have, as well as for keeping interest rates low,” he added.

“One should avoid late payments or missed payments as they lead to additional financial burden because the bank or lending institution will then charge late fees, penalty interest, etc., which will increase the burden of repayment again. To avoid such trouble, borrowers can Consider prepaying loans partially or fully when they have access to additional cash, but before one chooses it is important to ensure that there are no prepayment penalties or one can negotiate for a reduced prepayment waiver/penalty,” Benapala suggests.

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