Investing ( trading) when you are in debt trap

Recently, got a mail from a person who is struggling to pay his EMIs. The person had withdrawn cash from a credit card when his variable pay got down and has a huge outstanding amount on his credit card.
When his company announced an increment this year, the person was keen to invest the incremental income in the stock market , to multiply the money quickly to pay off his credit card dues.

I was shocked on reading this mail. When you are in a deep debt trap, you should try to get out of it first. In fact credit card cash withdrawal should be the last mode you should look into.

When you are in a debt trap, one should try to use any excess or surplus cash to pay of the debt. Investing (Trading!) with borrowed money or when you are in deep debt trap would potentially lead you to more trouble.

One should always try to live within the means and borrow within the means too.!


1 comment:

Anonymous said...

Thanks after sharing. Like always, on the money and bang on on object!

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