How to detect debt trap and exit it before it hurts your credit score

It is unwise to hang on to assets even as your liabilities keep growing due to high interest charges

Ashish Jha, a young entrepreneur, is a self-confessed compulsive spender. Worse still, he does not mind taking loans to fulfil his desires. Having been caught in a debt trap early in his life, Jha is aware of his shortcomings, but nonetheless finds it hard to curb his desire to live on borrowed money. “I am an impulsive spender. Often, when I don’t have adequate funds, I use my borrowing options and spend generously, thinking I will find the money to repay. But even though I try, I often find it hard to service my dues,” says Jha.

Are you, too,