ATM :: Here’s how you can be credit responsible during Diwali

Nov 05, 2013, 11.21 AM IST | Rajiv Raj, Founder & Director , |
As far as possible do avoid buy today and pay tomorrow offers, no matter how attractive they appear. A good credit card outstanding payment history helps in building good credit score, also known as CIBIL score, explains Rajiv Raj of


Celebrations are an integral part of any festival. It provides a way to escape from our mundane and daily drudgeries and take stock of the brilliance that lies in our futures. Consciously or unconsciously, we embark on a journey. Because it is pointless delve into past when future is waiting for your unconditional embrace. Most people forget this fact.

They are so fatally stuck in their daily routines that any moment of celebration means indulgence to excessive degree to them. They forget that it is not only a start of the auspicious but also the beginning of the propitious. In plain terms, it is the beginning of securing your financial freedom. And this time it is Diwali—the festival of lights.

It is better to keep a check on your financial health. Diwali and the festive season is a slippery area where we hear many accidents every year. I am not referring to those that happen due to some firecracker going awry or some guy getting punch drunk on the Diwali night. I am referring to those emails that I receive in couple of month’s post this festive season in which people seek advice to get out of debt trap.

Unfortunately that is not much written about and year after year credit counselors including myself keep replying such mails helping people to solve their problems. Hence, it is very important for me that this time, that we celebrate Diwali in a slightly different way.

But how different? This would be your question, right? I mean can we practice ‘responsible celebrations’ this year? It is easy to say that you should not splurge. But most of us cannot control themselves as there is no clearly defined boundary. So, I put a simple test or simple rule to ensure that you don’t go overboard. And the rule is: buy in cash.

You may choose to ‘buy’ using your credit card as a payment mechanism. But you should have money in your bank account to pay off your credit card debt on the due date. This would ensure that this year Diwali won’t leave you saddled with credit card debt and your CIBIL score would remain intact.

As far as possible do avoid buy today and pay tomorrow offers, no matter how attractive they appear. A good credit card outstanding payment history helps in building good credit score, also known as CIBIL score.

A good credit score is an essential for your good credit health but it does not stop here. How long will you continue the practice of gifting your dear ones gadgets, shirts, wines and what not? Why not gift your daughter studying in kindergarten a systematic investment plan in a good equity mutual fund.

This would be first step to build an overseas education fund for her. Consider gifting your wife a systematic investment plan in a gold exchange traded fund or some shares of Titan or Tribhovandas Bhimji Zaveri . She won’t mind it. How is the idea to gift yourself ‘part-prepayment of home loan’?

This will surely reduce the burden on your shoulders. The smile it fetches on your face will last much beyond Diwali and would reflect in better financial health with some improvement in your credit score. This Diwali take the right action and reduce your loans not increase borrowings against your name.

This will not only improve your credit score but also ensure that you are financially stronger to enjoy the festivities ahead. This is because one celebration also calls for another celebration if the purpose and goal are achieved.

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