TECHNOLOGICALECONOMICSOCIALPSYCHOLOGICALHow to avoid the trapLook out for these red flagsOpt for secured loans, such as home, car, education or gold loans. Use credit cards only to benefit from reward points, or in an emergency, and if you can repay in full every time. Avoid unsecured loans, such as credit card, personal, instant app, buy now pay later, microfinance or pay day loans. Do not use credit cards to pay for essentials or upgrade lifestyle, and if you can only pay the minimum amount due. Combine all your high-interest loans, especially credit card debt, and pay them off at one go.

Source: Economic Times February 23, 2026 01:02 UTC