Beware the Festive Credit Card Trap: Are Diwali Discounts Really Worth It?
Festive credit card offers promise discounts but hidden costs and overspending risks require careful budgeting.
As India’s festive season, including Diwali, Dhanteras, and Bhai Dooj, approaches, credit card companies flood the market with enticing offers like discounts, cashback, and no-cost EMIs, making everything from smartphones to SUVs seem more affordable. However, these deals, while appealing, often conceal pitfalls that can lead to financial strain. To navigate the festive shopping frenzy wisely, consumers must scrutinize terms, set budgets, and prioritize disciplined spending to ensure savings outweigh the risks.
Not all festive discounts deliver true value. Retailers may inflate original prices to exaggerate discounts or tie cashback to stringent conditions, such as minimum spend thresholds, which diminish actual savings. Hidden charges, including high interest rates after EMI grace periods or processing fees, can escalate costs if dues aren’t cleared promptly. Consumers should always compare sale prices with market rates and carefully review offer terms to avoid deceptive deals.
Setting a festive budget is crucial to curbing overspending. By allocating specific amounts for categories like gifts, decor, clothing, and sweets, shoppers can stay within their means and avoid post-festive financial regret. Impulse purchases, fueled by aggressive marketing, should be resisted—pause to assess whether a product is truly necessary and if its cost will burden next month’s credit card statement.
Also Read: Tata CLiQ’s 10/10 Sale Unleashes Epic Festive Discounts: Up to 85% Off Fashion & Luxury
Credit card rewards, such as points and cashback, can enhance festive shopping if used strategically for planned purchases rather than justifying unnecessary spending. While credit cards offer convenience and benefits, discipline is key. By reading the fine print, sticking to a budget, and prioritizing needs over wants, consumers can enjoy the festive season without falling into a debt trap, ensuring celebrations remain financially stress-free.
Also Read: Rain Turns Delhi Roads Into Gridlock Nightmare Just Before Festive Rush
