Personal Finance Red Flags Related To — Debt & Borrowing
When your personal finances show red flags related to debt, it is a signal that your borrowing is becoming unmanageable and may soon affect other areas of your life.
Recognizing these warnings early allows you to take corrective action before a debt trap sets in
1. No idea how much money is in your accounts.
2. Using credit cards/loans for everyday basics.
3. Avoiding bills or credit card statements.
4. Carrying debt as a “normal” thing.
5. Saying “just this one time” to justify overspending.
6. Paying one debt with another.
7. Asking family/friends for money regularly.
8. Only making minimum credit card payments.
9. Constantly maxing out cards/overdraft.
10. Taking loans for depreciating assets (gadgets, holidays).
11. Relying on payday loans/informal borrowing.
12. No clear plan to become debt-free.
13. Debt-to-income ratio > 40%.
14. Using loan moratoriums/restructuring habitually.
15. Ignoring credit score or not knowing it.
16. Using EMI holidays to extend lifestyle, not emergencies.
17. Co-signing loans without safeguards.
18. Paying high penalties (late EMIs, bounced cheques).
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