According to the financial experts the high rate of interest payable on unsecured loans, credit cards and other debts are the major sources of burden for the young generation. Hence, getting rid of them or clearing gradually should be the priority of every individual.
We are in the age of digitalisation. Everything is available on
virtual platforms. There are obvious advantages of such developments but on the
other side, it is pushing people in absolute and unnecessary consumerism. It
might provide a boost to the industry but it has distorted the budget in most
of the households.
In earlier days, shopping was not a festival and spending was only
on required objects. In the currents times, the virtual vendors, the online
shopping sites and megastores decide the amount and time one spends on shopping
because either it is Ďend of seasoní or maybe a Ďbig billion saleí.
The frequent onslaught of SALE has literally spoilt the financial planning of individuals. Individuals face financial crunch and resulting stress as they end up losing their salary on repaying the credit card bills and paying the ever increasing EMIs.
The most lucrative feature of the market is that now you can buy things even if the same does not fit your pocket, through credit cards and easy EMIs.
Money is spent in such a way that we donít realise that it is
spent. It leaves one person without any cash reserves for the uncertain future.
The loans that we take for personal shopping start to pinch us from the very
next day itself.
Here are a few tips to keep unnecessary spending in control:
Restricting the use of cards: The plastic money or the credit cards let you spend even if you
donít have the money. People swipe the cards without realising that in 45 days
you have to REPAY the whole amount. And in case you pay a fraction and roll
over the balance, the interest charge is crippling.
It adds to your existing
burden of managing your everyday expenses and paying necessary bills like
electricity, water, etc. Donít use the cards without planning and realising
your actual need for shopping. Keeping strict check on your avoidable spending
and credit control is absolutely necessary for a stress-free life.
Removing the non-essential
shopping: People in
metropolitan cities like Delhi, Mumbai, Bangalore etc. have habits of quite a
few unnecessary expenses. While it is OK to spend on some aspirational objects,
it is all the more essential to remain within a limit. However, the worrisome trend
is the growing habit of overspending on avoidable consumption items. It may
include ordering food online or frequently going to specific places just to
eat. For an instance if you spend Rs. 300 on average on one order and place
10-15 orders in a month then you end up spending around Rs. 3000-4500, which
not only affects you financially but also affects your health. Finally, you end
up with unnecessary credit card dues on your pocket, payable from your salary.
Reworking with the current
debt: It is
better to consider your financial situation before making a purchases. If you
are already paying EMI for vehicle or house then it is bad to burden yourself
with more credit. You pay the highest interest on the shopping done on the
cards (if the monthly dues are not paid in full). Try to restrict your
avoidable expenses and save for the future.
Using the extra time on
work: If you
require extra money then you work extra. If you work for two extra hours after
office then you can easily manage some extra bucks for yourself and utilize the
free time in productive work. Why not go for more earning, more saving and thus
lower your burden of unnecessary debts.
Avoiding the temptation: Sellers will always put the
best marketing strategy to lure customers but you need to decide whether you
require something or not. An useful method is not to take instant purchase
decisions for aspirational items even if the same is available at a lower
price. Before carrying out a large spending take some time off to think about
the funds available and whether you can defer the purchase. List your
priorities and plan wisely. Remember everyday groceries and bills are necessary
expenses which one canít avoid but buying clothes or gadgets on every sale is
absolutely illogical. Let market sell but you buy only when you actually need
clear your debts paid in the form of EMIs as soon as possible. Strive to keep
yourself away from purchases on credit. Do not make hasty decision when it
comes to buying. Remember, you may decide to buy a house eventually and would
need to pay a large part of your income as EMI on the house for a fairly long
time. It is better to prepare early for the same. Like you may save a fixed sum
from your monthly income in order to create a corpus for the down-payment
required for purchase of a house.
following the tips described above and keeping in mind the shared information,
the new generation can lower burden of debts. It will help you enjoy happy and
debt-free living in the society.