Debt Trap Warning: Are You Falling In? 5 Critical Signs to Watch Out For

• Debt traps are significantly increasing, driven by rising EMI purchases (mobiles, electronics) and credit card usage.
• Credit card default rates (90+ days overdue) jumped from 12.5% in March 2024 to 15% in March 2025, per CRIF High Mark data.
• A key sign is paying only the minimum amount on credit card bills or loans, leading to interest accumulation without principal reduction.
• Taking new loans to repay old ones, or loan amounts not decreasing despite regular payments, are clear indicators of a debt trap.
• Spending a large portion of income on EMIs and having no savings after many years of employment signal deep financial trouble.

Why It Matters: Recognize the 5 critical signs of a debt trap to avoid financial ruin and secure your future.