Household Debt: How To Identify High-Debt Signs, 5 Ways To Borrow Less & Save More
Last Update Date: 06-10-2026
Published by Outlook Business
Abhishek Kumar's role: Quoted
Abhishek Kumar suggested keeping the debt-to-income ratio, which is total EMIs divided by monthly income, between 20% and 35%. 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 warning signs of a debt trap, such as EMIs taking up half of income or frequent refinancing. 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