With festive and wedding season comes list of expenses. Whether it is to buy expensive gifts or planning a luxurious honeymoon. One has to be ready with all the finances. 

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Apart from using savings, one thing which is easily accessible is Credit cards. We often use credit cards for all our small and big expenses. So, should you be making payments from credit cards this time?

We tell you.

Credit cards make spending very easy, because you are using money that you don’t actually have. However, this can be harmful to one’s finances as you run the risk of overspending and then, if you don’t pay the bill on time, then you pay interest on the amount due.

In fact, credit cards are among the costliest form of credit. 

Archit Gupta, Founder & CEO ClearTax, said, "You not only spend more than you can afford to but you also pay additional amounts by way of interest. This problem can get amplified during the festive season when you are shopping for gifts for your loved ones."

However, credit cards can also be useful because you get offers, discounts and cashbacks on them. If used wisely, credit cards can help you save money. Hence, the best way to use credit cards during the festive season would be:

1. Fix a budget for the gifts you want to buy. Stick to this budget and make sure the purchases don’t exceed this budget, no matter how you pay--credit, debit or cash
2. Use credit cards only when you are getting a good offer or discount. Otherwise, use other forms of payments
3. Pay the credit card bill on time to avoid having to pay interest

Further, if we consider case of weddings, one can look at taking personal loans rather than using credit cards. 

Aditya Kumar, Founder & CEO Qbera said, "Among all loans, personal loans comes with the highest interest rates than any other loan type due to its unsecured nature. Since there is little to no documentation or verification involved, the entire procedure takes lesser time compared to the processing of other financial services and products. Personal loan interest rates range from 12% to 24%, which is far less compared to that of credit cards."

Unlike credit cards, which is a revolving credit, personal loans can be easily repaid in an agreed tenure in fixed EMIs. 

"Interest is estimated based on the average daily balance during the month rather than the ending balance. Unless you are borrowing for a short-term, we tell you it is best to avoid swiping during festive seasons when lenders are already offering you personal loans at reduced rates. Some banks/NBFCs even waive off fees and charges," Kumar added. 

So, this time do not overspend and manage for expenses wisely. 

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