Personal Finance: 4 signs of deterioration in financial planning, which can trap you in debt trap

Financial Planning Tips: Almost everyone has to face financial crisis at some point in their life. Although everyone tries not to do this to them. The growing debt trap is one such reason that can bring anyone in trouble. It often happens that a person gradually gets entangled in the debt trap and he is not aware of this. The only way to avoid this is to be alert in advance. In fact, we can find out from some signs that in the near future we may be burdened with heavy debt. Know what these signs are.


  • If more than 50 percent of your income is going to EMI, then you should immediately Alert should be given.
  • This happens when you take many small loans or one big loan. Even in the midst of good discounts, people shop excessively and lose a large part of their salary in EMI.
  • Keep in mind that EMI is 30-40 percent or less of monthly salary.


  • If you are not able to save, then know that in the near future you will have to take a loan. Might be needed.
  • You should try to save at least 10-20 percent of your monthly income.
  • If your entire earning is being spent and the budget is zero, then you are at risk.

Minimum Credit Card Bill Payment

  • If you pay the minimum credit card bill, do so immediately turn it off. This can land you in a debt trap.
  • If you pay 90% of your credit card bill, banks will charge interest on the entire amount in the next bill cycle and not 10% on the outstanding balance.
  • It is better to clear the entire credit bill in one go.

Keep these things in mind

  • A new loan should not be taken to repay a loan. This can entangle you in the debt trap. Try not to take a loan for this.
  • Pay EMI and bill payment on time. li>
  • Avoid steps that can affect your credit score such as running too many loans, multiple credit card applications, EMI defaults etc.

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