The festive season is over with companies meeting their sales target and luring customers with large cash back and pre-approved loan offers. Unquestionably, this was the happiest time for Indians that stirred the retail economy after two years of socially restricted celebrations. However, this has also brought large-ticket expenditures for customers buying new electronic appliances, gadgets, gold, gifts, etc., spending over the budget.   

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After two years of the pandemic, the economy has gradually recouped making people explore ways to manage the expenses burgeoned during festivals. Let's have a look at what all it takes to get back on track. 

Personal Loans: The emergence of the digital lending industry at a fast pace eases the loan application and approval process for customers. They no longer need to visit brick-and-mortar banks for documentation or processing of a personal loan. According to Ajay Chaurasia - Vice President, Business, Product and Marketing at RupeeRedee - customers can get instant access to credit as per their perusal and avail of a loan in 2 to 7 working days. 

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"Festivals bring sudden and large expenses and short-term personal loans can fulfill all customer needs. Furthermore, shorter tenures are available at the lowest interest rate to reduce the financial burden of the customers," he added.

Avoid Credit Cards: Banks offer credit cards to lure customers for small to big-ticket expenses. However, customers usually get trapped in high-interest repayment cycles. Considering the affordability, personal loans are much more convenient and better for customers to manage their debts. 

Let’s understand how! Credit cards usually charge 2-3 per cent per month from customers on outstanding balances which becomes 24  per cent to 36 per cent annually. 

"On the other hand, personal loans charge something around 18 per cent annually, making it a cheaper option for customers. As a result, the chances of delayed payments are alleviated and debts can finish off real quickly without interruption with the monthly expenses," said Ajay Chaurasia.

Define your financial priorities: As you have already spent over and above your budget, your prime responsibility should be to fix your financial priorities. In order to get back on track, it is always better to lower down the expenses on dining out, shopping for non-essential items, expenses on vacations and other such things.

Track Expenses: It is very important to track your expenses. According to Bhuvanaa Shreeram - Co-Founder & Head of Financial Planning, House of Alpha - tracking expenses is essential for maintaining a healthy saving rate.

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"A healthy saving rate will ensure long-term wealth creation and eventually financial independence and prosperity," Bhuvanaa Shreeram added.