Start With a Realistic Festive Budget
Before you check any accounts, the first step is to know your spending limit. Creating a festive budget is crucial to avoid overspending and financial strain. Start by listing all anticipated expenses: gifts, new clothes, home decor, sweets, travel, and celebrations.
Assign a realistic monetary cap to each category. This total should be based on your disposable income and any expected bonuses, not your credit card's entire limit. A good practice is to separate your festive budget from regular monthly household costs like rent, utilities, and EMIs. This simple plan acts as your primary defence against impulse buys and ensures your spending remains under control.
Scrutinise Your UPI and Wallet History
Unified Payments Interface (UPI) has become a primary mode of transaction for many, making it essential to review your history. Open your primary UPI apps—like Google Pay, PhonePe, or BHIM—and navigate to the 'Transaction History' section. Carefully scan the list for any unrecognised payments, duplicate charges, or transactions that are still marked as 'Pending'. If a transaction failed but money was debited, it should be reversed automatically, but it's wise to verify. For any suspicious entry or unresolved issue, use the app's built-in dispute mechanism to report the problem immediately. You can typically click on the specific transaction and find an option to 'Raise a Dispute' or 'Report an Issue'.
Review Your Bank and Credit Card Statements
Your bank and credit card statements are a comprehensive record of your financial activity. Log in to your net banking portal or mobile banking app and download the statements for the last couple of months. Check for any unfamiliar merchant names, subscriptions you forgot to cancel, or incorrect billing amounts. The festive season sees a spike in online shopping, which can also increase the risk of fraud. Regularly monitoring your statements helps you spot unauthorised transactions early. If you find a charge you don't recognise, contact your bank or credit card issuer immediately to report it and block the card if necessary.
Check Credit Limits and Card Health
Knowing the status of your credit cards is vital before a high-spending period. Check your available credit limit on each card. It is advisable not to exceed 30% of your total credit limit, as higher utilisation can negatively impact your credit score. Also, review any rewards points or cashback offers available. Many banks have special festive deals that you can leverage for savings on planned purchases. If you have multiple cards, consider using just one for all your Diwali shopping. This makes tracking expenses much easier and simplifies bill payment later.
Update Your Security Settings
With increased online activity during the festive season, fraudsters are more active. This is a perfect time to enhance your digital security. Change the passwords and PINs for your net banking, mobile banking apps, and UPI services. Avoid using easily guessable information like birthdays or simple number sequences. Enable two-factor authentication (2FA) wherever possible, as it adds a crucial layer of security. It is also wise to set up transaction alerts via SMS and email. These notifications will keep you informed of all account activity in real-time, allowing you to react quickly if you spot anything suspicious.
