New Delhi, July 7 -- A personal loan can be an incredible financial tool whether you're addressing unplanned bills, planning a wedding, addressing a medical emergency, or consolidating debts. However, you need to properly organise your finances preceding, and following, any personal loan to mitigate debt traps and preserve your credit. When using a systematic approach to build financial intelligence before and after a loan, follow this process.

Before you apply, ask yourself if you really need to request this loan. Do not request a personal loan to cover impulsive or discretionary purchases. Ensure the purpose, whether it is debt reduction, home improvement, or education aligns with your long-term financial goals.

Count your income obli...