New Delhi: Many people wait for the festive season to buy essential household appliances like smartphones or TV-fridge. The biggest reason for this is the huge discounts available during the festive season. During this time, the use of credit cards for shopping increases significantly.

Many e-commerce platforms also offer separate discounts on purchases made using credit cards. But, some precautions should also be taken while using credit cards during the festive season, otherwise you may get trapped in the debt trap.

Be sure to take care of the repayment cycle

If you are making huge purchases using a credit card during the festive season, then you need to take good care of the repayment cycle. If you do not pay the EMI on time, then the burden of debt on you may increase. Due to this, the bank may put you in the category of high-risk customers. This may cause you problems in taking loans in the future. In such a situation, you should keep in mind that you should make only as much purchases as you can easily pay in EMI.

Disadvantages of not paying the dues on time

If you do not pay the credit card bill on time, the bank will charge you a very high interest on the outstanding amount. You will get trapped in the debt trap due to high interest rate. This can have a bad effect on your other plans, such as investment or savings. You may also have to cut down on essential household expenses. In such a situation, you should do anything to pay the credit card bill on time.

Don't shop just for discounts

During the festive season, many e-commerce platforms offer huge discounts. In such a situation, many people make purchases just because of the greed for discounts. But, one should avoid doing this. You should buy only those things which you actually need. For example, if your old TV or refrigerator is working well, then you should not buy a new one just because you are getting a great discount on it.