How I managed my finances post festive season- Setting the credit limit right
Praveen Nair

Ever since I retired, I have looked forward to the festive season with added zeal. It is the buzz that I need once in a year in my laidback post-retirement life. I like to celebrate the occasion, get the house painted or renovated, buy gifts for my dear ones or go on a vacation. These things mean that I end up spending more money than usual, but at my age, it is wise to know your limits when it comes to spending. 

I have a fixed income coming in every month and I know exactly how much disposable income I have to spend in a year. That is why I am very certain about the money I borrow. Borrowing isn’t bad, as long as you don’t borrow more than what you can repay. Therefore, my credit limits are crystal clear. By setting my credit limits right I have always borrowed within my limits, repaid without defaults and always maintained my financial stability. All I did was figuring out the maximum amount of money out of my monthly income that I can use to repay loans. I made sure that my credit limit always stays somewhere within that figure. I don’t have a problem with credit cards or personal loans. It is all about their intelligent use that matters.