|
|
 Email this Page |  Write to us
How to avoid a debt trap
April 18, 2008
Do you splurge? Well, nothing wrong with that, so long as you are careful. You have every right to spend your hard-earned money, but overspending should not lead you to misery and debt. The economic boom has seen salaries rise and lifestyles change with people spending a lot on luxuries. Unfortunately, the economic prosperity has also seen a huge rise in personal debts.
While banks coax you to take loans for every reason, they will not help you when you are in a crisis. Debts wreck you financially as well as emotionally. So spend wisely. One needs to maintain a perfect balance between one's needs and wants to avoid debt trap. Here follow some tips to avoid the deadly debt trap, but first the danger signals. . .
If your bank balance is not enough to meet your expenses till the end of the month, you are headed for trouble. You may think that you can always save the money later but it is not easy.
You are moving towards a debt trap if you are spending much more than you earn. Though loans and credit cards make you richer temporarily, it brings with itself a huge burden which will lead you to a debt trap.
Image: Spend, but wisely -- An Indian youth with a magnetic roll and a coin he recovered from the River Ganges at Dakshineswar, near Kolkata. | Photograph: Deshakalyan Chowdhury/AFP/Getty Images
Also read: An amazing story: From Rs 60,000 to Rs 435 cr!
|
|
|
Advertisement
