You heard right. Currently I am playing this game and don't know how long it will run. How and when I have been trapped in this financial crisis and it becomes my lifestyle I don't know. Now the situation is that it is hard to stop or reverse this lifestyle. The total value of installments are higher than my income, and therefore to meet my EMI value I take another loan to repay existing debts. Though I know I am falling in more debts than before, I couldn't stop myself to take another loan.
Microfinance companies that provide small loans to married woman have been setup their branches all over India. And therefore people are getting easy loans from these brands. However, most of them don't create wealth, or acquire new property. Apart from microfinance companies, there are several other NBFC who provide loan within few minutes. I have already borrowed debt from these companies as personal loan to invest in business, but actually I use this fund to repay my credit card dues and installments. However, it is not going to work for longer period.
It has been difficult to stop this lifestyle habits. Now-a-day, most household items can be bought in EMI system such as refrigerators, washing machines, air conditioning, TV, laptop, mobile, and many more things. Therefore the people who can't afford the whole amount in cash, they choose financial help from lenders. Consumer finance and microfinance are very easy to get without showing your income proof. They check credit score and take some documents like identity and address proof to approve loans. In order to get consumer loans, product companies have tied up with lenders and offer their customers who are not able to buy a product in cash. Consumers find it the best and easy way to acquire essential products for home requirement.
Even I don't know how many purchases have been converted into installments in my credit card. Loan installments have used my whole credit card balance. I take loans and repaying existing debts rather saving anything. Like me, several people are doing the same thing and have fallen debt trap. The think about current lifestyle model rather traditional saving habits. Now I am trying to find out the way that will help me get out of this massive debt. I want to break this debt cycle otherwise it will ruin my life.