Unsecured loans are costly; limit the EMIs to 10-15% of your salary

The numbers in the recently published Reserve Bank of India (RBI) Annual Report (2017-18) indicate that Indians are loading up debt. Household debt has risen to 4 per cent of gross national disposable income (GNDI), up from 2.4 per cent in 2016-17. A large part of this is personal debt, including credit card debt. Credit card loans stood at Rs 690 billion at the end of March 2018. The foremost issue with credit card debt is that it is very expensive. You may be charged 2-4 per cent per month on your card balance. On an annualised basis, including penalties for late payment, yearly outgo .....

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