How to avoid a debt trap?

While the plastic money, debit cards, credit cards, personal loans, consumer loans have made the life hassle free, they have made sure to enhance the debt trap. Indeed, this is the fact, presently being experienced by so many people. The easy money which should have actually made life financially sound is doing the reverse. So, what should you do? Well, in the present world, it is really tedious to not have credit cards, debit cards or not avail a loan. However, the road should be taken in such a way that you avoid the debt trap.

Here are some simple yet effective rules which, if followed by you will avoid the trap of debts:-

  1. Credit cards- you love to swipe the cards. It is just one card and you have ample opportunity to swipe it and enable lots of purchase. Most of the time the credit keeps on accumulating and the result is debt. In fact, there are the instances when they are unable to assess the statement with respect to the same. Hence, use them well.
  2. Too much loan- there is immense availability of loan; however, this does not imply that you should avail them all. There are consumers rather individuals witnessed taking loans for renovating their abodes and even impulsive shopping. Well, you definitely not require these. After all, the loans are always associated with interest. And, hence repayment becomes a task. If you leave the task unattended the result is really bad.
  3. EMIs- you do not require every latest smart phone which comes on the market. In fact, you do not have to get that new bike too. And not at the expense of EMIs from your monthly salary. There are individuals that indulge too much in the EMIs and the result is a less salary. Finally, the outcome is debts.
  4. Budget- you are not required to purchase everything in this very month. It is for this acumen there is the principle of budgeting the purchase. Make sure to make a budget and stick to it. It will be of aid to you, your family and your future.