Manage Your Festive Cash with Credit Card and Payday Loans

The period from December to February always passes by in a flash, starting with Christmas celebration, followed by New Year and finally, our personal favourite, Chinese New Year! All these activities requires huge cash commitment from us. A Straits Times report states Singaporeans intend to spend an average of $2,503 during the Chinese New Year period.

Coupled that with the other celebrations, this amount can easily go up to three or four thousands. So, how can we manage or even make the most out of these thousands of dollars?

Cash back or Miles Credit Cards

There are many credit cards in the market with various benefits, but you will have to decide which one works best for you. Here, we recommend just looking at two types — cashback or miles.

This is how Cashback credit cards typically work — you get a percentage cash back at the end of the month after the bank has tabulated your spendings, usually with a cap on the cash back.

Different cards give cash back for different type of purchases:

Citi Cashback Card works best for food and transportation with up to 20% cashback on select merchants.

DBS Live Fresh Card works best if you love shopping online with up to 5% on online purchase

There are many others in the market, so compare them and select the best ones for your needs in order to get the most out of the high spending during the festive periods.

Miles cards are best for those who loves travelling as these cards gives you X miles for $Y purchase.

Unlike cash back cards, miles cards do not have a limit so you can rake in tons of miles during this period.

Credit Cards and Interest Rates

However, with credit cards, you will also need to take note of interest rates. Especially since there will be so much on your to-do list that you might forget about your credit bills.

This can take a huge hit on your finances since the rolling interest rates can be as much as 2% per month or 24% per annum.

Payday Loans Instead of Credit Cards For Quick Turnaround

The only issue with credit cards is that not everyone can afford them, especially if you have a history of bad credit ratings.

That’s when payday loan can help. Example, when you are waiting for your year-end bonus to arrive, and you require a small cash top-up to prepare for the celebrations.

While payday loan also has high interest rates, they can be easily managed as long as you work within your means and figure a plan to repay the amount monthly.

So, how have you been managing your spending during this period? Let us know if you have other great ideas!