The desire to own something often outpaces financial capacity.
"Buy now, pay later" promotions, interest-free installments, and the convenience of online credit tempt many people into debt, even for things that aren't actually urgent. This is what's called consumer debt: debt used not for productive needs, but for fleeting pleasure.
Signs of Being Trapped in Consumer Debt
1. Frequently buying items because of "discounts" or "fear of missing out on trends"
2. Not because you need them, but because you want to look up to date.
3. Paying off one debt with another
This indicates an unhealthy personal cash flow.
Your salary is used up on monthly installments
1. Ideally, your total installments should not exceed 30% of your monthly income.
2. Relying on PayLater or credit cards for daily needs .
This is a sign you're starting to lose control of your finances.
The Negative Impact of Consumer Debt
Instead of helping, consumer debt can actually trap you in a cycle of "spending your income on the past." Debt isn't your enemy, as long as it's used wisely and for purposes that add value.
However, consumer debt is a trap often hidden behind the convenience of modern transactions.
Be wise in managing your desires, because in the world of finance, it's not how much you earn that matters, but how intelligently you manage it.
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