Outlook Money
The easy access to credit, loans through EMI schemes, more and more taking of debt, and rising levels of aspirational consumption, ultimately lead to one falling into debt traps.
One gets affected by debt when the outstanding loans absorb a substantial part of the regular cash flow leaving aside very little for meeting emergencies or daily expenses. If an individual does not have access to a steady cash flow, the stress factor mounts manifold.
Debt can affect mental health and cause stress if one defaults or falls back on outstanding debt. It can lead to disturbing personal experiences like repeated calls and in extreme cases, even threats from collection agencies.
Financial illiteracy is one of the major reasons for debt. A lack of awareness about managing personal finance can also lead to debt burden.
Healthy borrowing and altering the spending pattern can help overcome debt.
Adopting financial discipline and taking the help of a trusted professional financial adviser can help one to de-stress from debt burdens.