Getting Out of a Debt Trap: A Step-by-Step Plan

A debt trap happens when new loans are taken to pay old ones. The way out is structured, not heroic.

Steps - List every loan: lender, balance, rate, EMI. - Stop all new borrowing. - Talk to lenders early about restructuring — regulated lenders have options. - Prioritise the costliest debts (avalanche) or smallest balances (snowball) — pick one and stick with it. - Build a small buffer so one emergency doesn't restart the cycle.