Household Debt: How To Identify High-Debt Signs, 5 Ways To Borrow Less & Save More
Last Update Date: 06-10-2026
Published by Outlook Money
Abhishek Kumar's role: Quoted
Abhishek Kumar suggested keeping the debt-to-income ratio, meaning total EMIs as a share of monthly income, between 20 and 35 per cent. He also suggested sorting spending into essential and optional items, so that cuts to optional spending free up money to repay costly debt.
More of Abhishek's views on debt and loans
Citing an RBI bulletin on rising household debt, the article explains how families can spot signs of a debt trap, such as high EMIs relative to income, frequent refinancing and unpaid card dues. It shows how to work out a debt-to-income ratio and lists ways to borrow less and save more.
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Household Debt: How To Identify High-Debt Signs, 5 Ways To Borrow Less & Save More