Business Standard

Two strategies to avoid a debt trap during job loss and dwindling income

The avalanche will save you money, but the snowball approach is easier to stick to

Debt, loans
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Bindisha Sarang Mumbai
The pandemic and the consequent loss of jobs and reduction in business incomes have led to an increase in household debt. According to a March 19 release from the Reserve Bank of India (RBI), the household debt-to-GDP ratio rose from 35.4 per cent in the first quarter of 2020-21 (Q1FY21) to 37.1 per cent in Q2. Add to that the easy availability of loans via apps, and the chances of falling into a debt trap are perhaps higher today than at any time in the past. If you are caught in such a situation, adopt one of the two strategies

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First Published: Mar 30 2021 | 4:44 PM IST

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