Loan Trap: In today's time, people are taking the help of loan to fulfill their every need. From phone to laptop, they are buying in installments, while this option gradually traps you in the debt trap. Taking loan is not wrong, but it is important to manage it in the right way, at the right time and for the right need. If you do not want to get trapped in the debt trap, then first understand some important things.
In today's time, it has become very easy to take credit card, personal loan. We get many such plans which guarantee instant approval. Due to this ease, people often forget the right and wrong in this. The result is that they keep getting trapped in the debt trap. After which problems also enter life. Therefore, you need to avoid this trap in time. So now we will know how we can avoid this debt trap.
Let's assume that you took a loan of Rs 50,000 to fulfill your laptop needs and thought that it will be paid through installments, but in the meantime, due to some problem, you have to take another loan of Rs 20,000 in a medical emergency. So now you will have two loans. Now if there is a delay in paying the installments of these loans, then your interest will increase. Then to get out of this, people take the help of credit card, but here the interest rate is even higher. This is where the financial problems enter your life. Then, without even wanting it, you slowly increase the burden of debt on your head. Many times, the entire salary is spent in paying it off.
Often, the debt trap is created in people's lives when the balance between your income and expenses starts deteriorating. The reason for this is excessive spending, not making a budget for expenses and sudden expenses, such as medical emergency or job loss. This is the reason why a budget should be made along with the salary and investments should be made to avoid emergencies.
If you do not want to get trapped in debt, then always understand the difference between your needs and desires. For example, if you have a TV or a fridge but still want to buy a new one, then this is not your need but a hobby. If you fulfill this hobby despite the lack of money, then you get trapped in debt by taking some loan or the other. If your phone suddenly breaks down some day and stops working, then you buy a new phone on installments, then this will be your need.
It is always necessary to make a budget so that you do not get trapped in the debt trap. In such a situation, if your salary is Rs 50,000, then you should always try to save Rs 10,000 every month. Spend the remaining Rs 30,000 on the necessary expenses of life and spend Rs 10,000 on fulfilling your hobbies etc. By making a budget in this way, you can keep yourself safe even in trouble.
Often we all do not prepare for an emergency fund in life. If you want that in future there is some emergency and you do not have to take loan etc. when you need money, then start preparing emergency fund right now. Take out some part of your salary for your emergency fund. You can prepare this fund for yourself by investing in any scheme.
It is very important for all of us to take health insurance on time. Health insurance helps not only you but also your family in medical problems. If you want to save yourself financially from sudden trouble, then it is necessary to take insurance on time, by taking health and life insurance you can avoid taking loan or borrowing in need.
If you have personal loan, credit card bill due and have also taken a car loan, then it is necessary to manage it properly. Actually, the interest rate of these three is different. So try to finish the loan whose loan and interest rate is less first so that you can save yourself from the burden of interest and make yourself debt free. That is, if you do a little planning, you can get freedom from loan. If you fulfill your wishes by doing this, then you can not only avoid debt. (Note- The news is based on general information)
