Festive lights, Colorful banners, the lure of deals and discounts, in India, the stretch from Ganesh Chaturthi to Diwali isn’t just a cultural high; it’s a financial marathon. Retailers, e-commerce platforms, NBFCs, all gear up for a consumption surge. But there’s a flip side: overspending, rising debt, buyer’s remorse.
For Advents Wealth, the message is simple: before you splurge, cleanse your financial slate. A proactive detox can empower you to enjoy the festivities without regrets, stress or long-term burden. Here’s how, and why, you should start now.
Why Financial Detox Matters
Festive spending is rising fast
- A recent survey (JioStar Festive Sentiment Survey, 2025) found 92% of Indian consumers plan to maintain or increase festive season spending this year. Average budget: ₹16,500 per consumer. The Economic Times
- E-commerce sales are projected to cross ₹1.2 lakh crore in 2025, a growth of about 27% from the previous comparable period. Much of that is in discretionary, impulse, festival-driven purchases. The Times of India
- In smaller towns, 36% of consumers plan to spend more than last year despite inflation. Choice of categories: fashion, electronics, home décor. mint
These numbers suggest a strong pull to spend—but they also hint at risk, especially for households already carrying debt.
Rising household debt & tightening lending
- Household debt from unsecured sources (personal loans, credit cards) is increasingly under scrutiny by lenders. Some recent reports highlight a decline in originations for personal loans and consumer durable loans amid concerns over rising household debt. The Economic Times
- Banks are tightening risk weights on unsecured lending and becoming cautious about customers with multiple loans. The Economic Times
So, for many, going into the festive season with existing debts is like sprinting with weights. It magnifies risk: higher interest costs, added stress, possible default.
What Financial Detox Looks Like: A Step-by-Step Guide
Here are actionable steps to clear debt, reset financial goals, and enjoy the festivals without overspending.
Step 1: Audit Your Debts & Interest Rates
- List all liabilities: credit cards, personal loans, EMIs (consumer durables, car, etc.), overdue bills.
- Note each debt’s interest rate, due date, outstanding amount.
- Identify which debts are costing you the most, those are the ones to target first.
Step 2: Prioritize Repayment Strategically
Two popular strategies:
- Avalanche method: Pay off the debt with the highest interest rate first while making minimum payments on others. Saves interest in the long run.
- Snowball method: Pay off the smallest balance first to build early momentum. Offers psychological wins.
Choose depending on your temperament. If motivation is more important, snowball helps. If saving money is priority, avalanche is better.
Step 3: Free Up Extra Cash Flow
- Temporarily pause or reduce non-essentials (subscriptions, impulse buys).
- Reallocate any bonuses, refunds, or unused funds towards debt.
- If possible, negotiate lower interest rates or consolidate multiple high-cost loans to one with lower rate.
Even redirecting small amounts (say an extra 5-10% of budget) can make a tangible dent in the highest-cost debt.
Step 4: Plan Your Festive Budget Before Shopping Begins
Without a plan, spend happens. With a budget, spend is intentional.
- Determine how much you really want or need to spend this festive season.
- Prioritize categories (gifts, clothes, décor, electronics) and assign spending caps per category.
- Leave a buffer for surprises, but set a ceiling.
Example: If your total festive budget is ₹20,000, you might allocate ₹6,000 for apparel, ₹4,000 for home décor, ₹5,000 for gifts, ₹2,000 for sweets/food, and ₹3,000 for miscellaneous/emergencies.
Step 5: Reset Financial Goals Post-Festivities
Once the festive season ends:
- Set goals: reduce debt by specific amounts, increase savings, invest.
- Build or replenish an emergency fund (3-6 months of living expenses).
- Track how you did during the season: what went over budget, what gave joy, what purchases were regrets. Lessons matter.
The Payoffs: What You Gain from Financial Detox
Here are the benefits beyond just “owing less”:
| Benefit | Impact / Data |
|---|---|
|
Lower interest burden |
Reducing or eliminating high-rate debt (credit cards, personal loans) can save thousands in interest per year. |
|
Improved liquidity & peace of mind |
Having fewer monthly obligations frees up cash flow for unexpected needs, reducing stress. |
|
Better credit score / financial reputation |
Timely payments and lower credit utilization help scoring models—useful for future borrowing, buying homes, etc. |
|
More intentional spending |
Clearer goals help avoid regret purchases and buyer’s remorse. Shopping becomes more meaningful. |
|
Financial momentum into the new year |
You start the post-festivity period with a cleaner ledger, better savings, more achievable goals. |
Data-Driven Case Study: The Cost of Festive Overspend
Let’s imagine:
- A household has ₹50,000 in credit card debt at 24% per annum.
- They also have a ₹30,000 personal loan at 15%.
- Festive spending adds another ₹20,000 on EMI (appliances) at 18%.
Without detox:
- Total interest payments could run into ₹15,000-₹20,000 extra over the next year.
- Minimum payments eat into monthly cash flows, reducing ability to save or invest.
With detox (auditing, focusing repayment, cutting down festive splurges):
- One can aim to pay off the credit card debt within 6 months, saving a large part of interest.
- Limit festive spending to budgeted ₹5,000-10,000 rather than overspending, keeping post-festive financial burdens manageable.
Action Plan: What You Should Do Today
- Grab a sheet (or open a spreadsheet/app) & list all debts + interest + due dates.
- Set a realistic repayment plan, e.g. pay extra to the top-cost debt this month.
- Define your festive spending limit before seeing any offers or deals.
- Stick to cash/debit or limited credit for festive purchases; avoid using maxed-out credit lines.
- Track every purchase during the season; review mid-season to adjust if overshooting.
Final Word: Celebrate Without Financial Hangover
The festive season in India is joyous, filled with family, food, color, and gifting. It shouldn’t be filled with financial regret. By detoxing finances, that is, clearing high-cost debt, resetting goals, planning your spend, you can enjoy the festivities while building momentum toward financial strength.
For Advents Wealth clients, think of this as your seasonal reset: a chance to emerge from the holidays not just festively richer in memories, but also financially stronger. Because a well-planned festival doesn’t just shine for a few days, it sets the tone for the year ahead.
