Festive Season Shopping: Smart Credit Card Tips to Avoid Falling into Debt This Diwali

As the festive season kicks in, online shopping platforms are witnessing a massive surge in transactions — and credit cards are leading the way. According to a Moneycontrol analysis, during festivals, people use credit cards nearly six times more often than debit cards. While this indicates strong consumer confidence and enthusiasm, it also reveals a worrying trend — most people are relying on borrowed money for their festive purchases.

Why Credit Card Use Peaks During Festive Sales

E-commerce giants like Amazon and Flipkart launch attractive festive sales, offering exclusive credit card discounts, cashback deals, and no-cost EMIs. Combined with the festive excitement of Diwali, Dhanteras, and Chhath, shoppers often find it hard to resist. But experts warn that overspending on credit cards can easily push people into financial trouble.

Credit cards undoubtedly make shopping convenient, providing instant credit and several reward benefits. However, careless usage can create long-term financial stress. If you’re planning to shop this festive season, understanding the risks before swiping your card can save you from unnecessary debt.

Beware of High Interest on Unpaid Balances

One of the biggest mistakes credit card users make is paying less than the total due amount. Banks and card issuers charge hefty interest on the outstanding balance, often ranging between 35% and 48% annually. For instance, the Flipkart SBI Credit Card levies around 3.75% interest per month, translating to 45% per year.

On top of that, missing the payment deadline attracts late payment fees, further increasing your financial burden. Experts emphasize that most shoppers don’t factor in these costs during festive splurges. Sometimes, people even buy items they don’t need, simply because of discounts or offers — a habit that can lead to serious debt accumulation.

How Overspending Can Trap You in Debt

Once your credit card bill goes beyond your repayment capacity, things can spiral out of control. Many users then start making only minimum payments, thinking it will help manage the debt. But in reality, it only prolongs repayment and inflates interest costs.

According to Harshil Morjaria, Certified Financial Planner at Value Curve Financial Services, “You must regularly track your unbilled balance and spend only what you can comfortably repay before the due date. Overspending without monitoring leads straight to a debt trap.”

He adds that if a user has a credit card bill of ₹50,000 and continues to pay only the minimum due every month, it could take up to nine years to clear the entire debt. That’s how dangerous the credit card debt cycle can be.

Simple Steps to Stay Financially Safe

The simplest way to avoid falling into this trap is to pay your credit card bill in full. If you cannot pay the entire amount at once, try clearing it in two installments within the billing cycle. This keeps interest accumulation in check.

Before you make your next festive purchase, check your unbilled transactions. Knowing how much credit you’ve already used helps you plan your next purchase wisely. Most users forget to track their pending balances, and when the final bill arrives, they are shocked by the total amount.

Final Takeaway

Festivals are meant to bring happiness — not financial stress. By using your credit card responsibly, monitoring your spending, and repaying on time, you can fully enjoy the festive cheer without falling into a credit trap.

A little financial discipline this season will ensure that your Diwali lights up your home — not your debt burden.