Top of main content

Avoid excessive borrowing

A woman talking on the phone; image used for HSBC India Avoid excessive borrowing article

If you have debt, then you are not alone.

Although household debt may be relatively low, it's still possible to develop unhealthy financial habits. For example, using a credit card for emergency and unforeseen costs, even if you live in a higher income household.

What counts as excessive borrowing?

Excessive borrowing is any amount of debt that you can't comfortably manage. There are several signs to look out for:

  1. Borrowing to cover everyday expenses
    One of the first signs that you may have a debt problem is if you need to borrow money to cover everyday expenses, like utility bills, food or travel costs. Rather than take out a short-term or payday loan, it may be helpful to admit that your budget is overstretched, and take steps to reduce your spends.
  2. Repeated borrowing
    Borrowing money repeatedly, and on a regular basis, is another sign that you may have a debt problem. It's a good idea to set yourself a budget, if you don't have one already, so that you can plan ahead.
  3. Minimum payments only
    If you have more than one credit card, and can only afford to make the minimum required payment on each, this may be another sign of excessive borrowing.
  4. Cash advances
    Using cash advances from credit cards to pay bills might seem like a manageable solution, but it's another sign that you may have borrowed more money than you can comfortably afford to pay back.

It may be difficult to avoid excessive borrowing if you're already struggling to meet your monthly spends. If it feels like your debt is getting out of control, you should consider seeking specialist help.

Back to top  

Take the next step

Financial wellbeing

A man enjoying on the armchair; image used for HSBC India Save for the future article
Start planning for time ahead
Father and son flying kite in the beach; image used for HSBC India Protect what matters article
Insurance is designed to protect you against some of life's risks.
A woman using computer; image used for HSBC India Be aware of scams and fraud article
Reports of financial fraud can be concerning, but there are ways to protect yourself. Explore each topic to learn more.

Disclaimer

This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider (s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.