How to manage your IME, your debts to save money during the festive session

Buying things with debt can give you immediate satisfaction, but it creates an obligation to pay the amount from future income.

Buying things with debt can give you immediate satisfaction, but it creates an obligation to pay the amount from future income. So, buying something with debt or equivalent monthly payments (EMI) might seem affordable, but getting into the habit of doing it can create tremendous financial stress for you in the future.

In such a situation, any disruption of future income can even lead you to bankruptcy.

Even if you manage to stay afloat, too many IMEs can put a strain on your future spending ability, even on the essentials.

So it is important to restrain your desire and spend within the limit of your income to ensure that you have the capacity to spend during the festivities to bring happiness to your loved ones.

“While your debt doesn’t have to define who you are, it certainly does have a significant impact on your finances. Especially as the holidays approach, it’s tempting to lose track of your final financial obligations and hamper your credit rating by overspending on materialistic items, ”said Nitin Mathur, CEO of Tavaga Advisory Services.

Speaking about how to properly manage your finances, Mathur said, “To effectively manage your debt, the first step would be to maintain a tight budget and save for an emergency fund to meet your financial obligations on time. It is also essential to select an appropriate and appropriate debt repayment strategy, such as the “snowball method” in which the smallest debt can be paid first, the “avalanche method” in which the highest or highest interest rate debt can be paid. as quickly as possible, or the “debt consolidation method,” in which all debts can be consolidated into one account for easy repayment. You should also set up monthly bill payment reminders which will not only save you time but also save you a significant amount of money.

Consumers Frantic Shopping This Holiday Season, Many Choose to Pay Later

Expressing his point of view, Manikanta Racharla, Chief Growth Officer and Co-Founder of, said: “For some, ‘debt’ is like a four letter word, but for others it is synonymous. of burden – and you cannot avoid it. But with the festivities approaching, we don’t want to be weighed down by the burden of debt and IMEs.

Racharla lists some steps on how to strategically break free from this rut ​​-

  • Savings are saviors: This is the first source to consider. Start by paying off the loan with the highest interest rate.
  • Debt Consolidation: Be smart and consolidate all your debts into one loan – and take advantage of low interest rates on large amounts.
  • Reduce occupancy time of your loan, and the EMI amount will automatically decrease.
  • Additional payments: Ditch the usual EMI concept and take advantage of prepayments. Why? Because with the decrease in the principal amount, the amount of interest also decreases.

Speaking about debt management, Anil Pinapala, CEO and Founder of Vivifi India Finance, said: “Personal finances are an important aspect of our lives and the way we plan for them impacts all other factors in it. are linked.

“Timely repayment is the key to having a good credit rating, and this is again crucial for any future loan needs you may have, as well as keeping interest rates low,” a- he added.

“We must avoid late payments or missed payments, because they entail an additional financial burden, because the bank or the credit institution will then charge late fees, penal interest, etc., which will again increase the costs. payment charges. To avoid such hassles, borrowers may consider prepaying loans in part or in full when they have access to additional cash, but before opting for this, it is important to ensure that it does not. There are no prepayment penalties or a waiver / reduced penalties can be negotiated. for prepayment, ”suggests Pinapala.

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