Red Flags Of High Debt: Are You Borrowing More Than You Could Pay?
Published by Outlook Business
Abhishek Kumar's role: Quoted
Abhishek Kumar, SEBI RIA at SahajMoney, said total EMIs should ideally stay between 20% and 35% of monthly income, and that regularly dipping into savings to pay EMIs is a sign to start reducing debt.
More of Abhishek's views on debt and loans
Outlook Business lists warning signs that a borrower may be heading towards a debt trap, such as EMIs above 50% of take-home pay, fixed obligations above 70%, frequent refinancing, a weakening credit score and dipping into savings to pay EMIs. It also explains how to work out a debt-to-income ratio, counting existing EMIs, before taking a large loan. The article includes comments from Abhishek Kumar.
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Red Flags Of High Debt: Are You Borrowing More Than You Could Pay?
