What is a debt Trap? Mistakes to avoid while taking debt | Personal Finance for Beginners Ep - 3

Welcome to Episode 3 of Personal Finance for Beginners! In this video, we're diving into the topic of loans and how reckless borrowing can ruin a person's financial life. Karthik Rangappa breaks it down - how to handle your debts, deal with credit cards, and borrow wisely (if at all you are forced to borrow.) Get practical tips on steering clear of debt traps and understanding your borrowing limits. Towards the end of the video, Karthik shares a simple technique that anyone can use to figure out what is the maximum amount one can borrow and still get a good night's sleep.
Time Stamps
00:00 Introduction
01:00 How to use debt responsibly?
02:30 How to overcome debt trap?
02:40 Ask for Help! and repay loan/debts
03:50 Is it bad to have a credit card or borrow money?
04:46 How to manage credit card debt wisely?
05:15 How can a credit card be used as an emergency fund?
06:16 How to estimate your loan taking capacity?
07:00 Conclusion
Links to Refer
Learn What is an Emergency Fund? How to build it? Personal Finance for Beginners Ep - 1
• What is an Emergency F...
Learn Common mistakes while buying life and health insurance | Personal Finance for Beginners Ep -2
• Common mistakes while ...
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Beginners Guide to Personal Finance
• Mutual Funds Investing...

[@kinetoscoper]

I fell into a massive debt very early in my career. When all came out it was nasty. All the things you said about losing face in front of the relatives, losing friends and loved ones were true in my case. My family helped me pick up and I have a wonderful set of close friends to support me. Today I am well settled and courageous enough to make any huge financial decisions. This video rang so many bells in me.

[@nipunjha]

How to not fall in a debt traps proceeds to explain benifits of credit card and emi 👏🏻

[@mdsarwar9593]

Robert kiyosaki watching this video now😅

[@kadapallavineshnithinkumar2473]

My father once had overall personal of about 14 Lakhs. Interest he was paying was almost near to his earnings. He didn't hesitate to sell part of his land to clear the loans. Emotionally it was hard. Logically, if he didn't sell then, he would have lost more till the time he realize. He bought more than what he sold within few years. I feel lucky for his thought😊

[@mohitmayank275]

If you are using credit card, It's good. If Credit Card is using you, God save you! understand the difference.

[@dadlife_diaries]

Good topic..I m happy that I am already aware about all these facts hence use my credit card very carefully.

[@sureshgs740]

Excellent.

[@yashyash3307]

I suggest to implement either 'Debt snowball' or 'Debt Avalanche' method. If they have fear towards their debt.

[@wiwian3902]

This video could'nt have come out at a more better time.. but It would be nice to also have some insight and advice on what to do or how to maintain one's sanity when you're stuck in a debt trap... because surely its taking a huge mental and emotional toll... :(

[@dannotes9396]

Thanks for those useful videos 😍

[@venugopal-yi5kn]

Great video...

[@jainikshah5751]

what about Od/Fd as emergency fund and LIC with pension plan ?

[@shamshadalamkhan9494]

Nice job

[@rajatraut1952]

Me and my mom stuck in loan trap now. 😢 Trying to overcome come but it's very difficult for us.

[@Nikhil-jk9vq]

I'm also in same situation but I know how to overcome from this situation. Basically I'm 21 and borrow money for stock market and the same amount of loan money is successfuling help to me get out of debt but in last some amount of money like 2 lakh is left. Coz currently bull run is no more in Indian Stock Market. So, I'm doing job now of delivery boy. And in 2024 this is my promise I clear all the amount of loan money. Baazigar hu mai kisi bhi situation ko handle kar sakta hu bas jigra hona chahiye insaan me. My aim to become a person of 5 crore by the age of 25. This is my promise to myself

[@shyammohan6772]

How do you figure out that, if a person gets 20k as free money on salary, in such case the affordable loan is 8 lakh

[@heypritam]

♥️♥️♥️

[@dhireshparab5190]

First step is stop taking new debt...which is very difficult for debt ridden person whose salary is eaten by EMI and cibil score is good.

[@puneetmishra5106]

The best way is disown the credit card

[@Bmohanty35]

Do not take debt