Hello friends. Math's teacher asked Monu a question, that if your father borrow money at 2% monthly interest, that after six month, how much money would he pay including interest? Monu said, 'No money'. His teacher got angry and said, don't you know the maths? Monu said, 'I know maths, but you don't know my father'. Whatever money he has taken, hasn't returned till date! I am starting this video with a joke, but today, I would say something harsh!
I am starting this
Blog with a joke,
I request you to read this blog till the end. When someone asked, what is the biggest burden? The answer was, debt! Because no burden is heavier than debt. Chanakya used to say, one must end debt, enemy and disease, as soon as possible. Here, he kept debt on the top! Because debt converts a happy person into a bitter person! Debt makes a person poor and ruins the poor. Debt is like any other trap. Entering it is very easy but getting out of it is very hard. Let's talk about loan in this video! Which is saying itself, don't take. Loan is saying itself, don't take. In the age of show-off, loan is becoming a fashion! And credit cars has filled the rest gap! Today, credit card is in every person's pocket. Shoppings are being done as per luxury not necessity! Wherever he goes, whatever he buys we have credit card, swap it, we will pay in EMIs, no worries. Earlier, people were used to saving, today, loan has become a culture. For everything, if it is for buying a phone or lehanga for marriage, and look at their dialogues. 'Live in present, who knows about future?' Those who say this, have a terrible future. Conditions are getting worse because of loan taking habits. And the biggest victim is a common person! Look at this report of Money and Mental Health Policy Institute of 2019. In England, 420k people think about suicide because of debt! 1 lakhs of them do suicide attempts also!
1 lakhs of them do
suicide attempts also!
If we talk about our country then from 2018 to 2020 in three years, 16k people have died because of debt or bankruptcy. That is, around 15 people everyday! Such news also come where a person didn't just die but also killed his whole family. Look at this. This is the news of last year from Indore. There was an employee of private telecom company had a lot of debt. Killed his wife and kids from poison, and then hanged himself. Siddarth, owner of CCD died by jumping in a river. He withdrawn 2700 crores from his company and used that money for buying shares, paying debt and interest. Before suicide, he wrote a letter. And he wrote about pressure from money lenders. Guys, every person(rich and poor) seems getting stuck in this trap. Show-off is taking your life today! Till now, I talked about those who died because of debt, but there are such millions of people who are alive but living like a coward because of debt. And we have no idea, how much they are depressed. How you get stuck in this trap, let me tell you today! Where would it start from? You went to a shopping mall, and a girl/boy would come to you!
You went to a shopping mall,
Excuse me sir, can I talk to you for a few minutes? Then he will tell you benefits of credit card. Reward points, free movie tickets, discount of flight tickets, special lounge access on airport, discount on restaurants, and all this is absolutely free of cost. Get this credit card. Have to pay after 50 days. You think that there is no harm in this. And pigeon comes to get the food. And gets stuck in the trap within a few days. Brother, your known ones are not giving you loan your neighbour aren't giving you loan who are they who are giving you loan? And why are giving you loan? Try to think! Ate in a restaurant, bill was 1500 rupees and paid through credit card! And took a debt of 1500 rupees. Went to the shop for window shopping, liked the shoes, and bought the shoes worth 6k rupees impulsively. Checked the price of earphones online once, and then you see ads of earphones everywhere on Youtube, Instagram, Facebook.
Checked the price of
earphones online once,
Ignored it for a few times, and then bought earphones worth 8k rupees. We are just using credit card everywhere. And one day, you see iPhone worth 1 lakh rupees in the hands of a friend, he did show-off and you fell in inferiority complex. Your phone is working well, but now you have to buy this new phone. This phone is set in your eyes. But salary hasn't credit yet. So what, we have credit card. We don't have all at once, will pay in EMIs. Job of 30k and phone of 1 lakh rupees. What kind of magic it is, is beyond my imagination! Brother, have shame! Taking a lot of debt, and company is converting your debt in a proud moment. The more you spend through credit card, the more you get the reward points. And to redeem them, you have to spend again! Take more debt. Small debt has taken a big shape. No accountings, come on, let me tell you the truth of credit card. First is, interest free period. It is from 20-50 days normally! There is a date of bill generation, and then there is a window of 15-20 days. If you don't pay till due date, then interest rates are applied. How much? You are told 2.5%-4% You think that this is very low. But wait. This is monthly rate, sir! Yes. If you calculate yearly rate, it becomes 30%-48%. 1 in 100 people pay the credit card bill on time.
1 in 100 people pay the
credit card bill on time.
That is extra-ordinary person, not a person and I salute him! He is really an extra-ordinary person! But normally, it doesn't happen! People give minimum amount. That is the amount enough to keep credit card active. The payment you postponed that is foundation of your debt trap! You have to pay interest on it. And then interest on that interest, more interest on that interest, you must have learnt in school, compounding interest. It is the same thing. Compounding was on yearly basis in those questions, but most credit card issuers do compounding on daily basis. Yes, you heard it right. The interest that is pending today, will have more interest tomorrow. And how can you forget penalties like late fee. You forget that this is your mistake, and suddenly, it appears in your statement, 'Late fee'. And some people have 3-4 credit cards. Paying the bill of one credit card from other credit card. They consider themselves very smart. The day this circle stops you will faint that day! Suppose, after today's video you become wiser, and you went for 'loan for closure'. That I want to pay all my debt. Wait. You have to give 5% as closure charges. Got confused?
Got confused?
This is what happens. While taking loan, everything is kept so simple that just sign on these 5 things and you are done. But the complexity which is in that document a common user isn't able to understand that, and due to this, he get stuck in debt trap! I want to tell you here credit card or loan isn't a bad thing. It is a great help in compulsion! But the way a young man is using it, those are very terrible ways. If you use credit card in compulsion and pay on time, then there is no issue. But it is not happening. Most of the people are using for show-off not for compulsion! Have made it a toy! And come companies take advantage of it. The habits of spending money are changing, because getting credit card is easy. And we don't feel and we keep doing unnecessary transactions. Guys, saving money and investing is very important.
Guys, saving money and
investing is very important.
How? For that, listen a very good audiobook, listen 'Baniye money management mein master' on Kuku FM. I have been using Kuku FM for a long time, and it is India's best audioshows platform, where there are more than 15 lakh Hindi paid subscribers. It's good thing is that it helps you to reduce your screen time. Its subscription costs just 99 rupees a month. If you use my coupon code SONU50 then you will get the first month subscription in just 49 rupees instead of 99 rupees. Let me take you back on our topic. Where there is no complexity, people get stuck there. A new story starts here. Yes. Private money lender make their entry here. People get attracted quickly to these people. Because there is no so much documentation! One can get loan very fast! But their interest rates are higher than that of credit card. However government has put the limit, that they can't charge more than a particular interest rate. But the ground reality is that a lot of money lenders are unlicensed! And we can see 10% monthly interest rate also! 500 rupees monthly interest on 5000 rupees. If you don't give they have recovery agents, who are goons in easy language. They will harass you to get the money back! Some people have paid double of the loan money but the loan amount is still the same. This is what they do. And not just that, there are loan apps in the market to give loan! Yes! This is our and your digital India! One can get loan easily without much documentations! And that's why people are becoming victim of these fraud Chinese apps. These loan apps asks for just Aadhar card and bank details to give loan.
These loan apps asks
for just Aadhar card
People get money in just 3 days. After 1 week, the real terrible things start. Loan app team calls and demand a big amount of money. These apps access his contacts and gallery morph their images and send to his contacts. Person get embarrassed! Look at this news of Hyderabad. Chandra Mohan of Hyderabad took loan worth 70 rupees from a loan app, and returned 2 lakh rupees, still he started getting harassment calls. He took his life because of mental torture. After family's complaint Cyberabad arrested three people. 1 from Gurugram and 2 from Karnataka. Later it was turned out that a guy named Micheal who was the resident of China he developed this loan app and sold to three different companies. Today, a lot of such apps are in the market. Guys, all this sounds very terrible, but don't get scared, let me give you solution! The solution is as simple as this problem. I am going to tell you seven points, remember them. First of all remember, you have to return whom you have taken. Remember it first.
Remember it first.
First thing is that, never think that we would take loan and won't repay it. Sounds weird but it is true. Some people aren't able to repay loan because of compulsion but some people are very smart. They put shame on side. They took the loan and now they make excuses in front of him! Will listen him and won't pick their calls! If the loan is taken from the bank, then they avoid notices, their intention is not to repay loan! They are lazy to make money, so they take loan! And that's how they live their life. They keep moving their money here and there. Basically, I am sorry, I am using bad words they are bastards. Those who eat for free. Such money which is wrong, which is prohibited in religion. Such person is considered as bastard in Bible. Who takes debt but don't repay. If you are such a person, I request you return the money you have borrowed. Point no. 2. Loan for need and desire. Why did you went to take loan? Think! Was it important to take loan?
Was it important to take loan?
The answer to this question is simple. Taking loan is important for necessity only, not for desire. Must give food, Cloth, House, Education, Health, Employment! If you want to take loan for admission in college then it's okay! But people are taking loans for foreign trips, whole family is going to travel, on EMI. Taking loan for iPhone. Salary is 30k rupees, but they want iPhone 14 pro in hands. I don't know, what is going on? I am not saying that you shouldn't have wants, but you should never take loan for wants. You should work hard. You need phone worth 10-15k rupees but a phone worth 1 lakh rupees is your desire. I am not saying that don't keep desires but work hard and then fulfill those desires, not with EMIs. A car worth 6-7 lakhs is a need, but a Fortuner worth 40 lakhs is a desire. Fulfill desires but by working hard. Point no. 3. Take a scissor and cut all your credit cards. This is my personal suggestion! I took the scissor and my credit card and cut the credit card like I am cutting it. Cut like this! Don't use credit card.
Don't use credit card.
If you are still using credit card then first of all, get out the debt of credit card. Get out as soon as possible. Remember that you don't have to keep unnecessary debt, no matter what happens. Stay away from fraud loan apps and private money lenders. No matter what happens, you don't have to take loan from such apps. And if they are harassing you then first of all, tell your family about this, don't get scared, because they are taking advantage of it. Never hide anything from your parents, did a mistake, then accept your parents are your biggest well-wishers. And those who have given you debt, are torturing you excessively then file a complaint in nearby police station! Nothing is more than life. Never take a wrong decision! Because sometimes people take their life because of torture. Never do this. Tell your family everything, your worries would go away! Let me tell you point. no. 4. While taking bank loan, do check if the loan is taking a major part of your salary? If a major part of your salary is going in EMI of the loan, then never take such loan! And if there is any health emergency, for that, make a contingency fund. For your kids' higher education, and for your retirement also it's very important to save money! It's not that salary credited every month, and spent it.
It's not that salary credited
every month, and spent it.
No savings after several years? Get used to save money, there won't be any need to take loan! Whenever you get salary or profit, transfer 10-15% of the money in the other bank account. Never touch that money, you will that after some years, you would have a big fund. Point No. 5 Always avoid impulsive buying. It's not that you saw something, liked it and bought it instantly. If you feel like buying anything then wait for a few days maybe you don't feel like buying then, and you feel good that you didn't waste money! Never make a decision of buying instantly and never with credit cards. Point no. 6 If you ever have to take loan and always have good journal of your finances.
If you ever have to take loan
I am taking about good debt here. Yes, debt is good also. Some debts are also good, they solve your problem instead of amplifying the problem! Good debt, which is for needs not for luxury! And that too when you have proper plan for repayment. Example, you have to buy a property you have to make an asset for which you need home loan! And you are sure that interest I will pay the appreciation of property would be more than that. Then must take it. If you want to expand your business that after I grow my business, I will repay the loan and interest then definitely take the loan! If you have to take the loan for higher education of kids then definitely take the loan! Some stains are good also! Point no. 7 at last listen it very carefully! Loan doesn't just hurt you financially rather it can impact your life! From mental health to your decisions there are many people who save money in 6-7 years of job and then leave their job to pursue their passion but the person who is stuck in debt trap can't leave the job! Company also knows that he is not going to go anywhere he has EMIs, he is given a lot of work.
Company also knows that
he is not going to go anywhere
He is given work for 15-16 hours and you are not able to get out this trap. And suddenly, recession came, lost the job! It would be worse. This is the true story of millions of people! Guys, it's better you control yourself instead of someone else control you! Always maintain the decision! On the other problems, I can ask you to think positive but loan and debt trap is such a problem which is not going to change with positive thinking. This is a very real problem. That's why never get stuck in trap of debt. Always have big dreams, but also work hard for them. Don't dream of becoming rich overnight!
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