Many people have been at the receiving end in the last few years primarily because they have gone and taken loans beyond what they could afford. They were assuming that their incomes will continue growing at a faster pace and their expenses will always be under control, and thus took the risk of going for maximum leveraging of their monthly savings.
But when the inflation shot up dramatically in the last year or so, and incomes also started stagnating, and the interest component of their loans went up, they were staring at defaults.
Thus, it is important that before taking a loan, be it personal loan, housing loan, car loan etc. we need to first check up whether we need it, whether we can afford it as per the terms of repayment we have taken, whether we need to go for a higher tenure repayment schedule etc. and then only go for the absolutely needy and AFFORDABLE loans.