The alleged kidnapper, Ramesh Ranjan, revealed that he raised a total loan of ₹15 lakh for his beauty shop on Jagdeo Path and that he had “engineered the abduction” to get the money to pay off the ₹12 lakh that remained.
“Behind the crime was the accused’s intent to clear a substantial outstanding loan by seeking ransom,” an official said.
The suspect “had initially planned to abduct someone else”, but after failing to do so, he resorted to kidnapping the child, the officer said.
This incident is quite unfortunate and condemnable. Although most borrowers would not resort to this sort of criminal behaviour to be able to pay off their debts, we can learn money lessons from the extreme reaction of a person under debt trap.
3 money lessons one can learn
I. Borrow what you can easily repay: One should borrow only that money which one can easily repay. Overborrowing can throw you into a debt trap.
II. Speak to the lender for pause of EMIs: If you are saddled with too much of a loan, you can speak to the lender if there is a possibility of pausing EMI.
III. Borrow from friends: You could consider borrowing money from your friends, in part of full, to repay the debt.
IV. Refinancing is an option: Finally, if you don’t find an alternative in options II and III above, you can opt for refinancing. In this, you roll over your debt, which reduces your EMI burden.
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