If you see these signs then understand that you are trapped in the debt trap.

Savings and Expenses: Economic crisis can surround anyone, but we can try our best not to face such a situation. 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. Do you know what these signs are?


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


  • If you are not able to save, then know that in the near future you may need to take a loan.
  • Try to save at least 10-20 percent of your monthly income.
  • If your entire earnings are being spent and the budget is zero, then you are at risk.

Minimum credit card bill payment

  • If you pay the minimum bill on the credit card, then stop doing so immediately. This can put 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

  • One should not take a new loan to repay the loan. This can put you in a debt trap.
  • Apart from your fixed expenses, if you have to do any shopping or go somewhere, then meet its expenses from your salary or savings. Try not to take loans for this.
  • Pay EMIs and Bill Payments on Time
  • Avoid steps that affect your credit score such as running into excessive loans, multiple credit card applications, EMI defaults, etc.

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Shivam Bangwal

Shivam Bangwal is a young entrepreneur who hails from Uttarakhand. Shivam is a professional full time Digital Marketing and PR expert with a post graduation degree of Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Branding Panther and Digital Leader.

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