India, May 4 -- April or May is when most corporate employees receive their annual performance bonus. It is something that they eagerly look forward to. Once the amount hits the bank, most people are very excited to use it. It is important to plan how to use the bonus amount; otherwise, you may end up splurging it. In this article, we will discuss some ways to use the annual bonus for financial planning.

If you have any high-cost debt (credit cards, personal loans) outstanding, you should use the bonus amount to repay it. Most banks charge up to 3.5% per month (up to 42% per annum) for credit card balance carried forward. It makes credit cards one of the costliest loans in the world.

Do you have any personal loans for which the EMIs are...