What is Responsible borrowing?
Is an act of borrowing money cautiously so that you are able to repay your loan while keeping a healthy credit score. Under Consumer Protection Act you are provided with greater level of protection against suppliers of goods and services by ensuring that norms and standards to protect you are well adhered to, the act also aims at promoting responsible consumer behavior and also prohibits unfair market and business methods.
Responsible borrowing requires you to first do your own financial check, you can do this by creating a small database of your monthly expenses and debts, thus keeping in mind on whether you can manage to repay the amount borrowed on monthly basis without compromising your lifestyle. If you find yourself wondering where your salary went, each and every month, then you need to get a grip of your finances and rethink saving.
Avoid taking multiple debts and focus on settling down your current debts, starting with ones with higher monthly interest rate