7 Tips to Avoid Credit Card Debt During Festive Season Shopping

1. Stick to a Budget
Festivals bring irresistible deals, but it’s crucial to stay within a budget. Set a spending limit that won’t affect your other financial commitments.

2. Track Your Spending
Many mobile banking apps allow real-time alerts. Use them to track your expenses and ensure you don’t exceed your budget or credit limit.

3️. Avoid Impulse Purchases
Limited-time offers can be tempting, but they can lead to unplanned buys. Stick to your wishlist and avoid splurging on things you don’t really need.

4️. Know Your Credit Limit
Using your full credit limit may impact your credit score. Try to keep your utilisation to 30% or less to maintain a healthy credit score.

5️. Be Smart with No-Cost EMIs
No-cost EMIs make big purchases affordable by splitting payments, but overcommitting can hurt your finances. Ensure the EMI plans fit your budget.

6️. Pay Off Your Bill in Full
Paying only the minimum amount results in interest accumulation. Always aim to clear your full outstanding balance to avoid falling into debt.

7️. Don’t Chase Rewards Blindly
Cashback and rewards are tempting, but chasing them can lead to overspending. Stick to your budget and only spend for the items you need.