Are EMIs troubling you? Here's how to manage instalments amid festive spending

The festivities are at their peak and so is the spending by most Indian households. Many people wait for festive sales and auspicious times to buy homes, gold, and other desired goods, right from electronics to household items. While preparing for the celebrations, expenses may go a little out of hand hence it is important to plan and save ahead for impending expenses during these times. There are many options where one can make their purchases through monthly payment schemes which ease the burden and helps with monthly budget management. These days, many financial firms offer schemes like buy now and pay later that provide short-term credit to people. Then, there are e-commerce platforms that help with EMIs on credit cards.

Prashant A Bhonsle, Founder & CEO of Kuhoo Fintech said that one must ensure that they are using the right financial partners while availing options like Buy Now Pay Later. "Various factors such as what is the loan tenure, principal amount, different interest rates and processing fees being charged on the transaction must be looked into. Prioritising your wishlist and sticking to a well-defined budget determined earlier is always advisable," said Bhonsle, cautioning people against skipping an EMI.

If you have exhausted your savings and still need to buy something, opting for Buy Now Pay Later may help you by reducing this month's outgoing expenses by carrying them forward to the next month. However, it's always advisable that never stretch your spending beyond your earnings, as this will help you avoid default. 

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Anil Pinapala, CEO & Founder of Vivifi India Finance, said that a record of good credit history unlocks opportunities to fulfil your financial goals without any hassles in life. "A well-devised financial strategy and efficient debt management with utmost discipline are the most essential aspects that bear weightage on an individual’s credit profile. If you’ve opted for a personal loan to manage your finances, managing your debts with discipline becomes crucial," said Pinapala.

Experts also advise that one should have an understanding of a credit card's billing cycle as this helps in availing more credit time. Also, if you have multiple EMIs going on, you should keep enough balance to fund them.