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Last Updated : Nov 16, 2015 03:06 PM IST | Source: Moneycontrol.com

How to‘s to making big ticket purchases this Diwali!

Better to do some research before shopping. There is no point jumping the gun, just because there is an offer. If you cannot pay off your credit card bills, it can impact your CIBIL score.

Rajiv Raj
Creditvidya.com

The festive season, it is all about the celebration and sales. You not only get time to spend with your family and friends but also get to shop to your heart’s content with the bonuses received! During Diwali a lot of people get ready to make both small and big ticket purchases because well, you do get the best offers during this period but how to be really sure if spending during this time is the right decision?

How would you know if the prices are right or the offers are realistic enough? How to not go over budget or have funding problems while buying things like cars or jewellery or even a home? How not to binge shop and waste your money on things you could get better prices on? If these are the questions that haunt you this bright festive season, then this article might just be your solution!

#1 Know your purchasing power
Be a smart consumer or even better, think like an economist. Know that manufacturers know, you are going to shop and you won’t care about how much money you spend because you’re going to subconsciously tell yourself - it’s okay, it’s Diwali, but your money won’t magically turn into self-generating income every time you spend. If you are planning to buy a home or a car or gold, be careful about your spending power. Don’t get swayed away by special prices, they are all displayed in a way to fool you. Even with 0% interest free EMI options, they might be very tempting but if you don’t earn or generate the money you are going to spend you will fall into a bad debt, so hold you horses and think every purchase through.

#2 Make a list
Lists are the best things to keep you aware about your requirements and spending. If you need to buy particular items then put them on the list, see how much budget they require. Check if you have the money and then stick to that list and make the following purchases and you will have an awesome shopping experience!

#3 Use your reward points or cash back offers
I bet you’ve swiped your credit card plenty of times to collect enough rewards points to redeem them while you go shopping with that list you’ve made. You would be surprised the amount of discount or cash back opportunities these points can get you. Start digging for those collected points and start utilizing those great opportunities to help you save money or make better purchases!

#4 Know the original prices
While online shopping sites might get you pumped up with their offers, always keep a list of the original prices of the products you’ve been meaning to buy. If the offers make a bare minimum difference, you’re better off getting the item from shops especially electronics where you can get detailed ideas of configurations you require and maybe bigger sale opportunities!

#5 Stick to your six month old plans
If you’re planning to make a big purchase I am sure it isn’t an instant decision of yours to pick Diwali for buying those goods. If you’ve done your research and have been planning to buy a particular car or a home in a particular society since a while so don’t get swayed away with bigger cars with better offers or bigger homes with lower interests. You might just go over budget and end up thinking you settled for a good deal but don’t forget you also paid more than what you had decided!

#6 Do your research
Be a research master! With the internet you can almost get ideas or tips on better offers within seconds of your time. If you are planning to take a home loan or a car loan because of the best offers provided by your bank during Diwali, don’t get swayed away again. Look for more loan offers from other banks, search for better offers by manufacturers. Sometimes builders directly can get you great offers on buying a home during this season. Use your resources and do the best research you can. Just because it is Diwali doesn’t mean it is your last chance to purchase something big.

#7 Look beyond the sale
Sometimes - “0% EMI and no down payment during this festive season”, might sound temping but the payment that comes after maybe hell. Look at the after effects on your CIBIL score while taking loans or spending too much on your credit cards and suffering while paying off your credit card bills on its next due date. Consider the next move before making the current one and you will do good!

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First Published on Nov 10, 2015 12:13 pm
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