By Admin 
Debt Trap Warning Signs: Nowadays the debt burden on people is increasing very fast. Apart from needs, people have started considering it as a normal thing to buy goods on EMI and use credit cards to fulfill their hobbies. Many times things are being purchased without thinking. Due to which EMI remains on the head every month.
Even after the balance in the bank account decreases, expenses continue with the help of loans and installments. The real problem arises when you do not even realize this. However, by then it is too late and you are trapped in debt.
In such a situation, it is important to recognize those signs in time, which show that your steps have moved towards a debt trap. Let us know about some such signs…
1. Taking a new loan to pay off the old loan
A person trapped in debt is forced to take another loan to repay the amount of one loan. This is a sign that the person is trapped in a debt trap. By doing this, the gap between monthly income and expenses becomes very large. Due to which the person has to face problems.
2. Most of the income is spent in paying EMI.
Most of the income of a person trapped in debt trap is spent in repaying the loan and EMI installments. If you are getting these signs, then you need to be careful. Savings are not possible as most of the money is spent on EMI installments.
Due to which financial planning cannot be done. Which shows that the person is trapped in the web of debt.
3. Relying only on minimum payment
Another sign of getting trapped in debt is when a person starts paying only the minimum amount instead of paying the full amount on a credit card or loan. This saves him from immediate fine, but the actual amount does not reduce. Due to which interest keeps increasing continuously.
4. No savings after working for many years
If a person does not have any kind of savings even after working for years, it can be a sign of being in a debt trap. The person has not paid attention to saving and investing or he is trapped in debt.
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