New age DEBT on CREDIT CARDS

 While the real essence of DEBT has remained the same, its applicability has changed over the years.

Earlier people would borrow money for bigger needs such as house, after due consideration. Low Debts could also be credited to the difficulty of getting loan. Today you borrow money for even small wants such as an earphone. The easy availability of credit is alluring.

However, the seemingly helpful loan come with hidden cost. Here's what you don't realize

• You will keep paying interest on the interest that gets added to your outstanding credit card amount. If you dont clear your dues, you can end up by paying between 36-42% interest in a year.
• Once you enjoy the credit facility, you will not shy away from living on credit, which is one of the initial signs of entering the DEBT TRAP.
• Multiple credits not only affect your credit score but also make repayment difficult. Missed payments attract additional interest or penalties which will only push you further into DEBT TRAP.
• Defaulting on credit card payments also attract 18% GST on the sum accrued interest and charges.