Personal loan
The festive season is always special and in the meantime, the decoration of the house, shopping of gifts, working with relatives are working. There is beauty everywhere, but at the same time expenses increase. Many times these expenses become so much that our month’s income starts to decrease. In such a situation, people often think about taking help of personal loan or credit card.
If you too are going out of your budget this Diwali and are thinking of taking a loan, then it is very important to understand some important things. You can help you with a loan, but if not prudent is not taken, then this help can become a big financial responsibility.
Take a loan only when needed
Many times we take a loan only to increase the fun of the festival, such as more expensive gifts, new clothes, or holiday planning. But you must ask yourself the question whether these expenses are really important? If these expenses can be reduced or can be done later, then it would be better to avoid taking a loan.
What is a credit card option?
If you have a credit card and you can pay it within 30-45 days, then it can be a better option than the loan. Many credit card companies also offer festive offers and cashback. Keep in mind that it is necessary to pay on time, otherwise he may have to pay heavy interest.
Borrow as much as necessary
While taking a personal loan, people often take more money, so that a little extra remains in the hand, but it can be a little extra as more interest later. So borrow as much as it is necessary, and plan to repay it as soon as possible.
Keep the loan duration short
The purpose of taking personal loan is to meet immediate needs. Therefore, keep its duration at least i.e. between 6 months to 1 year. By giving EMI for a long time, not only your monthly budget deteriorates, but the happiness of the festival also fade.
Large financial goals do not harm
Suppose you are thinking of taking a loan for the education of a car, house or children in the next few months, then the personal loan taken in this festival can affect your credit score and loan eligibility. Therefore, take carefully decide that today’s small happiness does not become heavy on the great need of tomorrow.