Shop Smart This Festive Season: Avoiding Festive Debt Trap

Festive shopping can lead to overspending and result in a debt trap. But not if you follow some simple approaches.

How To Avoid Debt Trap

With the festive season around the corner, shopping is almost unavoidable. But do you know what is avoidable? Debt trap arising out of festive shopping. If you are stuck in a debt trap, your credit score goes for a toss, and you remain under prolonged financial stress. With credit card interest going up to 42%, and late fees compounding with every bill, you must avoid overspending. Remember, even a single EMI default can dent your credit history, risking your future loan prospects. Therefore, shopping smartly is highly recommended.

  • In the 2022 festive season, there was a 10% jump in within-state deliveries.
  • Look for offers and deals by merchants and credit/debit cards.
  • Budgeting and smart shopping can help you avoid the festive debt trap.
  • The number of personal loan defaulters in India has increased to 32.9%.

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Prepare a Budget

To avoid a financial roadblock during the festive season, prepare a budget. You can create a fund out of your monthly budget, earmarking a portion towards the holiday spending. This will help you create a shopping fund regularly, without feeling the pinch during the festive months.

Steal the Deal

You can shop for the festive season at any time during the year. If there is a fantastic off-season discount on an item, buy it then and there instead of waiting for the festive season. Look for merchant offers on your credit or debit card and make full use of the same. Keep an eye on shopping festivals and deals offered by merchants on special occasions, be it on Independence Day or Diwali. To sum up, buy when the opportunity arises, rather than stacking the entire task for the holiday season.

Watch Out For Financing Options 

If you must finance some of your shopping, look for affordable options. Interest-free EMI, processing fee waivers, and interest rate comparisons are finer details that you need to check before financing an item during the festive period. This will lower your cost of borrowing and help you repay the debt on time, and without financial pressure.

Also ReadWhy Is Buy Now Pay Later Becoming Popular Among Customers?

Avoid Temptation

Impulsive shopping can make your budget overshoot. Therefore, once you have a shopping budget prepared, make sure you stick to it while shopping. Defer impulsive shopping for occasions like your next appraisal or your salary bonus.


The key to avoiding the festive debt trap is to follow a strict budget, control your impulses and watch out for the costs while shopping. By avoiding the unnecessary stress of mounting debt repayment, you can enjoy the festivities in the true spirit.

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Also Read5 Things To Remember When Opting For Big Festive Discounts Online


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