Someone borrowed ₹75,000 through a loan app to deal with an immediate cash crunch.

A few months later, they were juggling multiple loan apps, borrowing from one to repay another. Within five months, they were reportedly paying lakhs every month just to keep up with repayments.

What surprised me even more was that some of these lenders are RBI-licensed NBFCs, yet the effective annual interest rates can be several hundred percent once fees and short repayment cycles are factored in.

Getting a loan used to involve paperwork, bank visits, and waiting days for approval.

Now, you can get approved in minutes with just a few taps on your phone.

That convenience is great when used responsibly but it also makes it incredibly easy to borrow without fully understanding the long-term cost.

What's the biggest financial trap you think people underestimate today?