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Festive Season Payment: Cash, UPI, Credit Card, or EMI? Which Saves You More?
- •Be cautious when choosing a payment method for festive season shopping to maximize savings.
- •Cash, UPI, or debit cards avoid EMI worries but may miss out on larger bank card discounts.
- •Credit cards offer instant discounts and reward points, but late payments incur high interest charges.
- •No-cost EMI allows installment payments but may involve processing fees and GST, making the product more expensive.
- •Experts advise careful shopping during festive offers; cash payments help track expenses and avoid additional charges.
Key Questions Answered
Using cash, UPI, or debit cards helps you stay within budget and avoid outstanding payments. However, credit cards can offer up to 10% instant discounts and reward points if paid on time, while no-cost EMI helps maintain cash flow for expensive items despite extra processing fees.
Financial planners recommend creating a dedicated festive budget before shopping begins, keeping it separate from routine monthly expenses like groceries and utility bills. You should divide expected costs into specific categories like gifts, clothing, and travel, and never treat your total credit card limit as your spending limit.
While no-cost EMI lets you buy expensive items in installments without spending a large amount at once, it carries extra costs. You may miss out on full-payment instant discounts and must separately pay a processing fee of Rs 199 to 299 along with an 18% GST on interest.
