5 Warning signs you are headed for a debt trap

What’s the big deal about missing your EMI payments occasionally? Okay, you took a few extra days to clear the debt, but you did pay up. So it’s not a problem, right? Well, it could be a problem if you’re habitually careless about repayments. A missed EMI or an overdue on your credit card can spiral into a debt trap over time.

Here are some warning signs that indicate you’re getting into a debt trap:

  • Exhausted credit card limit

    Purchasing goods on credit is convenient. You can buy what you want without having to worry about paying for it right away. However, an urgent situation may require a costly purchase. To avoid the financial burden resulting from repaying the amount in full, a Personal Loan could come in handy. To avoid incurring substantial interest rates, you may want to apply for a personal loan to clear your debt and improve your credit rating.
  • A dwindling credit score

    Your credit score is an indicator of your credit health and repayment capabilities. For a healthy debt profile, it is advisable to keep your debt records clear. Identify areas where you may have a debt problem and try to work on them. For example, you may find yourself stretched thin on your monthly budget and may therefore have missed a payment deadline. To get an infusion of cash and comfortably make room for other purchases, you may wish to consider a Personal Loan to ease your finances. Timely repayment of Personal Loans can energise your credit score.
  • Juggling various loans

    Imagine if you had to repay a Car Loan, two Personal Loans, and two Credit Card bills each month! It can get exhausting to repay different loans at different times each month. You may want to consolidate all your loans under one loan umbrella; this can ensure a fixed rate of interest, a single repayment window every month, and peace of mind.
  • Lack of savings

    If you haven’t started saving yet, now is the time. It is never too late to set a savings goal. Saving money for the future can help you achieve your financial dreams. Many low-risk investment avenues such as Recurring Deposits, Retirement Schemes, and Mutual Funds allow you to invest regularly. You can benefit from the advantages of compound interest by making periodic/monthly investments.

    Keep reading to know how to increase Savings?
  • Paying only the minimum due

    Credit Cards offer you the option to carry forward your credit. However, it is vital to make timely payments to clear earlier dues and maintain a healthy credit profile. To prevent debt, you could opt for a Personal Loan from HDFC Bank that comes at a low interest rate. This could ensure you repay your debt in full as you can make easy repayments towards the loan each month, without burdening your finances.


Having debt is not a bad thing; you can make it to work in your favour. For instance, having a Home Loan can get you tax benefits. Similarly, taking a Personal Loan to clear debt and other repayments can ensure a healthy credit score and a hassle-free life.

So what are you waiting for? Get a Personal Loan now, and Jio Shaan Se!

Looking to apply for an HDFC Bank Personal Loan? Click here ​​​​​​​!

* Terms & conditions apply. Personal Loan and Home Loan disbursal at sole discretion of HDFC Bank Ltd.