Let’s face it—loans can be a lifesaver when you’re trying to level up in life. Whether it’s funding your studies, buying your first car, or starting a small hustle, a little borrowed money can go a long way. But here’s the hard truth: debt can also be a trap. If you’re not careful, you could end up paying way more than you ever borrowed, stuck in a cycle of repayments that eats away at your income and your peace of mind. So let’s shine a light on the dark side of debt and figure out how you can borrow smartly and avoid getting buried.

The Dark Side of Debt: How to Dodge the Pitfalls of Over-Borrowing

The Lure of Personal Loans: Tempting but Risky

Personal loans are everywhere—from your bank’s flashy ads to the fintech apps on your phone. And they’re convenient—no need to put down your car or home as collateral, plus they can be used for just about anything.

But watch out for the hidden costs. While those “low interest personal loans” sound great, they often come with extra fees like initiation fees, service charges, and early repayment penalties that can catch you off guard. The key is to read the fine print carefully. If you see an interest rate that’s sky-high—think twice. Even a loan that feels manageable at first can snowball into a mountain of debt if you’re not paying attention.