Credit offerings can be debt traps!

Consumers often forget that credit comes with risks and fall prey to the temptation of borrowing beyond their means. Fast & easy credit offerings combined with manipulative marketing tactics lure youngsters into a debt trap. Gen Z may lack the financial smartness to understand the obligation of credit, timely repayments & interest rates. This may result in accumulating unnecessary excess debt which if not paid in time will diminish their credit worthiness and reduced their savings substantially. Schemes like Smart EMI & Buy Now Pay Later (BNPL) can be debt traps if not exercised with caution. That is why financial literacy at early age is essential.