Bangalore: An overdose of everything is harmful and debt leveraging is not an exception. Amidst rising disposable income, 'Debt Trap' has emerged as the dark realty amongst growing middle-class Indians. To have a clear picture of debt trap, let's take a look at Shobit's story a bachelor who lived life king-size. After getting married he still continued to live life lavishly. He took his wife for a great honeymoon to Paris and thereafter a couple of weekend trips within India. His entire expenses were paid via a personal loan and credit cards. Within four months of his marriage, his entire salary was going toward repaying living expenses and EMIs leaving him no savings at the end of the month. Now Shobit fears any default in repayment would put him in trouble and ruin his Credit Information Report (CIR) managed by CIBIL. Debt trap if not handled properly could result in severe financial crisis. Do not despair if your tarpped in debt follow these steps Inform your family and friends The biggest blunder a person commits is not seeking help from family and friends for short term borrowings. Don't keep your family in dark. You can have an option of taking small loans from your friends in order to avoid the recovery agents from reaching your door step. By informing the family, you are making them aware of the financial crisis you are going through and in return they can help by cutting down unnecessary expenses and help you manage your expense. Swap your loan Get a cheaper loan to dispose of costly ones. If you are servicing high-cost personal or business loan, try to avail cheaper loan in the foam of loan against property, loan against securities, loan against gold, so that you will be able to pay your loans at lower rate. In the majority of cases, the reason for debt trap is the high interest rate payout that customers do not anticipate. Banks charge as much as 45-50 per cent on credit cards and upwards of 20 per cent on personal loans. Plan for repayment Try and narrow down your expenses. Find out how much you spend on a monthly basis; cut down extra expenses and in this way you some amount that you can spare towards repayment of the debt. Borrow cheap: In order to get rid of the high interest loans, look to borrow cheap. This could be the National Savings Certificate (NSC), loan against life insurance, Kisan Vikas Patra (KVP), shares, mutual funds, gold and fixed deposits (FDs). You can borrow against these securities and get a much cheaper loan. One-time settlement If you are given a chance by the bank to settle all dues in one shot then you should work out a one-time-settlement with the lenders. To avoid any loans from becoming non-performing assets (NPAs), banks are willing for a settlement if the borrower is willing to pay off the principal amount. On a case-to-case basis, the settlement can be made in installments as well. Restructure the loans If you cannot pay back your dues in one shot then ask the bank to restructure your loan. Draft a letter that states your current financial condition. Mention the money you need to pay off. Give a clear picture of your net salary and request the bank to restructure. The banks will restructure the loan, wherein higher equated monthly installments (EMI) are charged as and when the your financial position improves.