1. You are in a total debt trap if:-
a) You’re repaying loans over 45% of your income.
b) You’re repaying non-mortgage loans over 25% of your income.
c) You roll over your credit card bill almost every month.
d) You’ve been warned by the bank for frequently missing EMI and credit card payments in the past one year.
e) You find it difficult to arrange money for EMI or credit card payment and end up
borrowing to pay them.
f) You transfer the balance of a credit card bill to another card when unable to pay.
g) You use a credit card as a means to spend freely.
h) You take a loan by assuming a pay hike or a big appreciation of your investments.
i) You are totally clueless about how you will repay your loans.
2. However, you can climb down the debt trap ladder by getting rid of the costliest loans to the cheapest:-
a) Credit card payments.
b) Personal loans.
c) Consumer durables loans.
d) Vehicle purchase loans.
e) Education loans.
f) Home loans.
a) You’re repaying loans over 45% of your income.
b) You’re repaying non-mortgage loans over 25% of your income.
c) You roll over your credit card bill almost every month.
d) You’ve been warned by the bank for frequently missing EMI and credit card payments in the past one year.
e) You find it difficult to arrange money for EMI or credit card payment and end up
borrowing to pay them.
f) You transfer the balance of a credit card bill to another card when unable to pay.
g) You use a credit card as a means to spend freely.
h) You take a loan by assuming a pay hike or a big appreciation of your investments.
i) You are totally clueless about how you will repay your loans.
2. However, you can climb down the debt trap ladder by getting rid of the costliest loans to the cheapest:-
a) Credit card payments.
b) Personal loans.
c) Consumer durables loans.
d) Vehicle purchase loans.
e) Education loans.
f) Home loans.