Our Own Habits Leads to Debt Trap: How to Get Out Of It?

debt trap

When Akash was a kid, whenever he wanted something, his father would give it to him eventually, but only if he had enough money to buy it. Even though Akash’s father was from a lower-middle-class family and did not have access to a credit card at the time, he was in a position where he could have easily borrowed money from anyone he knew.

However, he never did, which is why he never went into debt and died without owing anyone a single penny. Nearly 30 years later, Akash has everything his father never had—an apartment, a posh car, and lots of other similar possessions. Akash, on the other hand, has a lot of debt and will have to live paycheck to paycheck without any savings for the future.

However, this is not an exceptional case. Debt has become an accepted way of life for many people today, and consumer finance schemes and credit cards are quickly becoming major drivers of this devil. The average person’s debt today has increased as a result of rising disposable incomes, rising aspirations, and the ease of obtaining credit. And one never knows when they really fall into the trap until they have to borrow money to pay back outstanding loans and interest, which eventually creates a spiral that is difficult to break out of.

The First Ever Community Where You Get Verified Friends Who Help You In Financial Crisis.

True, borrowing may be necessary from time to time, particularly during times of crisis and emergency. However, the problem begins when people borrow money for their own pleasure. It should come as no surprise that the majority of financial disasters are our own creations, beginning with small bad habits that can only be broken if we recognize them and take action to break them.

Living extravagantly or beyond one’s means is one such bad habit. In fact, whoever advised the world to cut its coat according to its cloth was surely not an insane person. After all, simply by overspending or spending more than they can afford, people always lose more than they gain.

Read: Importance Of Saving Money: Why Is Saving Money Important?

8 Financial Advice From Some Of The Richest People In The World

How To Avoid Falling Into The Debt Trap

Rather than taking a loan for buying the things you need you can save money and purchase the thing you need. This way you will not be under any kind of debt. Now the question arises how can we save?

You can save money through a digital group savings platform like the Money Club. Here you get a chance to save money along with verified peers from all over India. In this platform a specific number of people verified by the Money Club invest their money with a promise that their investment will be multiplied within a short span of time with surety and guaranteed return.  A certain amount is deposited on a regular basis by individuals. Generally, those who are in need of money in a particular month participate in the bidding, and the member who bids the lowest is given the total amount of pooled money.

This scheme lasts for the same number of months as the number of members. In this way, you save by contributing a small amount to gather a lumpsum amount which you can then use to purchase anything as per your requirement. In this manner your purchases will become pocket friendly.

The rate of return generated by saving on this AI based platform is much higher than what is offered by banks. Banks offer 3%-6% annual returns whereas, the returns here can be between 15–20% on an average.

Do money problems keep you up at night? Looking for a solution?

The Money Club is India’s best AI–driven digital peer to peer platform founded by ex IIT, INSEAD and UCLA alums. Through The Money Club mobile app you can join a club with other verified peers and pool up money regularly. It is a transparent, safe and secure platform that allows like-minded people from all over India to save, invest or borrow efficiently through their smartphones.

The Money Club runs clubs on a daily, 3-days, and weekly basis to help you earn returns in a short time. The biggest advantage of this platform is that you can borrow money whenever you have a need or if there is any financial emergency.       

Saving money can be tough on your own, but with the support of a community, it becomes a lot easier. When you surround yourself with like-minded individuals who are also committed to managing their finances, you’ll find that you’re more motivated and accountable to reach your goals.

So, join The Money Club and achieve your goals NOW!


Read: How Does The Money Club Mobile App Work? – The Money Club

 How to Save Money from Salary? 15 Smart Tips

How To Save Money Fast- 10 Best Ways For Saving Money