Today we talk about credit cards, those little plastic wonders that can be your best friend or your worst enemy. They are like your average ‘Nukkar ka chaiwala’ who keeps offering you ‘one more cup’ until you've lost track of how many you've had. Before you know it, your tummy is drowning in chai (or in this case, debt). How do you keep your finances in check and avoid the debt trap? Here are some practical tips!

Track Your Spending - Desi Style

Forget complicated apps. Use a good old notebook or an Excel sheet. Write down every rupee you spend. There’s something about seeing the numbers in front of you that makes you think twice before splurging on that extra-large pizza.

Embrace the Power of EMI

In India, we love our EMIs. But remember, just because you can buy something on EMI doesn’t mean you should. Limit your EMI purchases to essentials and ensure you can comfortably afford the monthly payments.

Reward Points are Your Friends, Not Your Frenemies

Use credit cards that offer reward points, but don’t let them tempt you into spending more. Treat them as a bonus, not a reason to buy things you don’t need.

Avoid the Minimum Payment Trap

Paying only the minimum amount due is like trying to empty the ocean with a teaspoon. Aim to pay off your entire balance each month. If that’s not possible, pay as much as you can to avoid accumulating interest.

Desi Jugad for Saving Money

Look for discounts, use coupons, and never shy away from bargaining. Whether you're shopping online or at your local market, a little jugad can save you a lot of money.

Consider a Balance Transfers

If you have high-interest debt, consider a balance transfer to a card with a lower interest rate. This can help you pay off your debt faster and save on interest.

Educate Yourself 

If you are using credit cards, you must also understand how credit cards work. Get into the habit of reading the fine print and be aware of the interest rates and fees associated with your card. You should also consider getting into the habit of tracking and managing your credit score to ensure that these debts don’t start to reflect on the same. App based platforms like Olyv can help you track, manage and improve your score for free.