1. You Borrow for Lifestyle, Not Necessity
Most people don’t take loans because of emergency.
They take loans because they want things now — clothes, phone, trips, upgrades.
That’s not financial need. That’s impatience.
Debt taken for lifestyle always traps you.
Fix:
Never borrow for anything that doesn’t increase your income.
2. You Think Installments Make Things “Affordable”
Installments are psychological traps.
You convince yourself:
“Only 3,000 per month — easy.”
But stack 5–6 installments and suddenly half your income is gone.
You don’t feel the pain instantly — but the long-term damage is massive.
Fix:
If you can’t buy it cash, you can’t afford it.
3. You Ignore Interest Like It’s Nothing
Interest is the silent killer.
Even small percentages multiply your debt quickly.
People underestimate interest and overestimate their ability to repay — a deadly combo.
Fix:
Understand interest before taking any loan.
If you don’t understand it, avoid it.
4. You Only Pay Minimum Amount
Paying minimum is financial suicide.
It keeps you stuck for years and increases your total payable amount.
You’re not reducing debt — you’re paying rent to your lender.
Fix:
Always pay more than minimum.
Target the highest-interest loan first.
5. You Don’t Have a Repayment Strategy
Most people just “pay whatever they can.”
That’s not a plan.
Your debt will outsmart you unless you attack it strategically.
Fix:
Use one of these two methods:
- Snowball: Pay smallest loan first for momentum.
- Avalanche: Pay highest-interest loan first for maximum savings.
Both work — just choose one and commit.
6. You Repeat the Cycle Again
Even after paying one loan, you take another — same toxic cycle.
Debt isn’t the problem.
Your financial behavior is.
Fix:
No new loans until:
- Emergency fund built
- Budget stable
- Income steady
Break the cycle once, not temporarily.