It might not be possible to remain unscathed from the global economic downturn completely, but there are things you can do to beat the financial impact. The world is ensnared in a recession brought on by the recent Russia – Ukraine war and the coronavirus pandemic. As the events continue to unfold, there is a chance for the world to face a global recession soon. But no need to worry if you follow basic financial hygiene and are a smart consumer. Here are a few tips you can consider if you are facing the ongoing cash crunch situation–
Get rid of the high-interest loans/debts
If you are trying to cut down expenses, then paying off high-interest loans or debts should be at the top of your target list. Whether it is a high-interest home loan, car loan, personal loan, or even credit card bill, high interest can add up quickly and you could end up paying more towards your debt than you ought to. If you don’t have enough funds to pay off the high-interest debt, then you could consolidate all your debts and make single, regular payments towards them to reduce your financial burden.
Credit Card Myths
It’s a myth that using a credit card can lead you to a debt trap. On the contrary, if you use it wisely, you can rake in accelerated reward points, get lifetime free credit cards, and also enjoy discounts and deals on online grocery shopping, etc. Many banks such as IndusInd Bank offer rewards that don’t expire. Meaning you could accumulate reward points and redeem them at your convenience. Not only this, but you could also convert them to cash to pay the outstanding amount on your credit card statement. So, credit cards offer more value to your money as you can maximize your savings. Apply for a credit card online if you haven’t already.
Instant Money
When you are low on funds, credit cards can come in handy, especially when it comes to month-end utility bill payments or online grocery shopping. As opposed to debit cards, you could rake in points on every transaction on credit cards and accelerated reward points on weekends.
Convert your purchases to EMIs
You can convert your big, essential purchases into EMIs with low interest. Therefore, if you are low on cash, but need to make a big essential, don’t let the temporary cash crunch hold you back. Speak with your bank representative, about how you can convert your credit card transaction into easy EMIs.
What’s more?
During the festive season, you can avail multiple offers from credit card companies. For instance, depending upon the type of credit card, it could open the door to a host of discounts and other privileges like lounge access, fuel surcharge waiver, comprehensive insurance benefits, etc. Instant cards like the Legend Credit Card from IndusInd Bank comes with accelerated reward points on weekends and even exclusive bonus rewards on milestone spending. You must use your card in a way that helps you get the best out of the perks that come with the card which can definitely save you money.
Despite all the tips we follow, most of us can run into a cash crunch at one point. The money in our savings account can dry up, but instead of worrying about managing household expenses, applying for a credit card online can help you maximize your savings by offering discounts and cashbacks.