Avoid ‘Diwala’ This Diwali: Four Ways To Celebrate & Stay Debt Free!
Advertisement
Advertisement
Avoid an impulse purchase
Diwali
Read the fine print
A consumer durable loan may seem tempting because you do not have to pay a steep rate on interest like that in a credit card (where the annualized rate of interest may anything between 36-40%) or a personal loan (12-14%). However, do check out the real
Loans are not available on every product
Advertisement
Check out your current liabilities
It may seem easy to make a down payment on the device you want with the Diwali bonus you have just received, but before you avail of any new loan, take a careful look at your existing liabilities and ask yourself honestly whether you are in a position to take on an additional debt burden. Not only should you be comfortable making timely repayments it should not influence your debt to income ratio negatively (financial wisdom suggests that it should ideally be under 35 %). A high debt to income ratio may negatively impact your chances of getting a loan when you are really in need of one.
It surely feels good to buy sparkling new things during Diwali, but if you don’t really need it and do not have the money saved up for it, it is perhaps a better idea to postpone your purchase for a while rather than blindly increasing your debt burden right after Diwali!
About the author: Rajiv Raj is the director and co-founder of www.creditvidya.com
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market