Nowadays, people take loans to fulfill their every small and big need. This is the reason that before the installment of one loan is over, they add another loan to their life. Due to which, gradually they get trapped in the debt trap. The lure of 'Buy Now Pay Later' can make you bankrupt. So let's know how to get rid of it from yourself.

It often happens with people that before the installment of one loan is over, the offer or need of another loan comes up. Loan apps on mobile, lucrative offers of 'Buy Now Pay Later', easy EMI on credit card... all this seems very convenient to all of us, but do you know that the 'ease' that you get sitting at home in minutes is slowly making you bankrupt? So now today we will know what can be the secret of this dangerous web of 'easy loan'.

Companies are following this format of 'easy loan' to trap people in loans. Sometimes the interest on these loans is very high, which is not told. Processing fees, late payment charges are so much that the loan becomes expensive. If you are in debt even for small things, then it also has a bad effect on CIBIL / credit score.

By taking a loan for a long time, a large part of your income is spent only on EMI. Due to this, 30-40% of the monthly salary or even more sometimes goes in paying EMI of different loans only. This is the reason that many times there is tension on the date of EMI that which EMI to pay this month and which to stop.

Many times people take personal loan to pay credit card bill. Some people take loan from another app to pay the installment of a loan app. So this can be considered a dangerous cycle in itself. Due to this, instead of paying off the loan, you get trapped in the debt trap.

You easily choose the loan or 'Buy Now Pay Later' option for things like mobile, gadgets, clothes, travelling, even if it is not your immediate need. If you think that it is a matter of just Rs. 1000-2000, we will pay it later and are accumulating many loans, then you are making a mistake. But by doing this you are losing financial discipline and debt is becoming your habit.

By taking one loan after another, the burden of debt becomes like a mountain due to interest on interest. Then the credit score gets spoiled, due to which it becomes difficult to get a big loan like a house or a car in the future.

If you are seeing the above mentioned signs, then first of all stop taking any new 'easy' loan. To get out of this, make a list of all your small and big loans and their EMIs, along with the interest rate. Make a list of income and expenses and finish the EMIs.

The shortcut of 'easy loan' can put you in trouble for a long time. So first understand the difference between your needs and desires. Make your budget, save and spend wisely. A little caution today can save you from big trouble tomorrow. (Note: The news is based on general information)