Outlook Money
From new gadgets and gold jewellery to gifts and home makeovers, Diwali shopping can stretch your budget. How you finance these purchases matters as much as what you buy.
Using savings for planned Diwali purchases can help you avoid interest costs and debt. However, don’t exhaust your emergency fund or compromise money set aside for essential expenses.
Credit cards can make Diwali shopping more rewarding through cashback, discounts and reward points. They also offer short-term payment flexibility, provided you clear the entire bill by its due date.
Carrying forward unpaid credit card dues can make festive purchases significantly more expensive. Annualised interest rates can reach 36-48 per cent, potentially wiping out the benefits of shopping discounts.
A personal loan can help spread the cost of expensive Diwali purchases over several months. Before borrowing, compare interest rates, processing fees, repayment tenure, and the total amount payable.
Pay-in-three schemes and easy EMIs may make festive purchases appear affordable. However, combining several instalments can increase your monthly commitments and leave you with less money for regular household expenses.
Prepare a festive budget covering shopping, gifts, travel, and celebrations. Account for essential bills and existing EMIs first, then decide how much you can comfortably spend.