Merry Christmas

Hi everybody
Christmas is on the cards and we are ready to celebrate this auspicious day. Almost all of us go for a vacation to enjoy with our near and dear ones forgetting our professional pressure. We save a portion of our income round the year to spend for this day and return back again in our normal course of work after our vacation.

Now let me try to relate Christmas with our credit problems. Mostly we spend as much as we like during this time without taking into account our ability to repay the amount. We begin spending our savings and once our savings get exhausted we take recourse to our credit cards for our expenses. Now, our credit problem starts from here. Most of us usually have more than 5 credit cards and some of us fully exhaust the credit limit on these credit cards with the expectation that when we return back to work we will repay it slowly from our monthly income. But given our regular monthly consumption expenses, we cannot afford to pay back the credit card outstanding amount and we end up in debt trap because of high interest on these cards. Moreover, due to regular non payment on the credit cards, we become delinquent and this delinquency gets reported in our credit report, which not only reduces our credit score but also increases the probability of the creditor bringing judgment against us.

It is no doubt true that that Christmas comes once a year and we buy clothes and gifts right from the beginning of the month of December and by this time most of us have completed our shopping for this day. So before spending more we should first assess our expenditures because the economy is already on the slowdown and most of us may not have a job when we are going to come back. Moreover, the stimulus payment has not been very much successful in stimulating the economy. We should therefore try to cut down our expenses a bit for this year so that we do not face credit problems the next year when we come back.


Merry Christmas