Debt Trap Tips: In today's time, whether you want to buy a house, buy a car, or need money for any personal work, you get the facility of a loan for every kind of work from the bank. Money is easily arranged through a loan and the borrower gets the facility to repay the loan amount gradually through EMI. But many times people take advantage of this facility and take many loans together. Later when they have to pay EMI of all the loans, then they face problems. In such a situation, loan becomes a problem for them, not a convenience. They do not understand when they get badly trapped in the debt trap. If something like this is happening with you too, then know here those 5 ways which can help you in this difficult time.

First see which loan is the most expensive among all the loans you have taken because it will also have the highest EMI. If you have taken a personal loan, auto loan and home loan, then the personal loan will have the highest interest rate. In such a case, the personal loan is the most expensive loan. Repay such loans first. One way to get rid of expensive loans is that you can take a top up on the cheapest loan and close the loan with higher interest by paying it off at once.

If you want, you can also choose the option of loan settlement. Settle the loan first which is the most expensive and is increasing your debt rapidly. During loan settlement, try to bring the amount to 50 percent. This can give you a lot of relief.

If you are employed, then get out of the comfort zone and switch to another job to increase your income. Or do some extra work which increases your income. You can also reduce your debt burden by increasing your income.

Since ancient times, people have been storing gold in their homes so that this loan can be useful in difficult times. If you are badly trapped in debt, then you can repay the loan by selling gold or reduce the burden of debt. Apart from this, if you restructure your budget and remove unnecessary expenses from it, then you can use that amount for pre-payment.

After getting trapped in the debt trap, do not create new problems for yourself by taking another loan from outside. This will trap you in new debt. If you have any kind of property, then it can be useful for you. You can reduce the burden of big debt by mortgaging or selling it. Do not increase the debt in the process of saving the property, otherwise it will create problems for you.