Does your loan fulfil the AA criteria?

A good loan must fulfil the AA criteria: it should 'add' to assets or income and should be 'appropriate', meaning EMI shouldn't exceed one-third of income

I was catching up with Arihant, an ex-colleague and an IIT-IIM (Indian Institute of Technology-Indian Institute of Management) graduate, who now runs a successful company. He described his first brush with financial leverage in the early 2000s when he had just begun working. Despite earning a good salary, Arihant’s lifestyle expenses surpassed his earnings. He soon ran up a credit card bill amounting to three months’ salary. He had to seek financial assistance from his parents to clear off this debt. After this experience, Arihant curtailed his expenses and soon repaid his parents.

Arihant’s story illustrates human beings’ evolutionary bias for