A 27-year-old techie has sparked a discussion on Reddit after revealing that despite earning ₹2 lakh a month, he is “drowning in debt” and living paycheck to paycheck.
In a post titled “Earning ₹2L/month but drowning in debt, need advice,” the IT professional shared that he is married and takes home ₹2 lakh a month – an income many would consider financially comfortable. However, he said that a series of major life events over the past year left him struggling with debt.
“On paper, I should be financially comfortable, but honestly, I feel stuck and don’t know the best way to recover,” he wrote.
“Over the last year, a lot happened all at once. I got married. Some unavoidable family situations and commitments required significant financial support,” he added.
The techie shared that around 8-9 months ago, he moved to another city with his wife. “Setting up a completely new home from scratch (rent, furniture, appliances, kitchen, deposits, etc.) cost much more than we expected,” he wrote, adding that the financial burden increased further after his wife recently lost her job, leaving the household dependent on a single income.
Sharing a breakdown of his finances, the Redditor said he has borrowed ₹20 lakh from a relative and pays ₹25,000 a month towards it. He is also paying a personal loan with an EMI of around ₹25,000 and credit card EMIs totalling ₹30,000 a month, which are expected to end in the next 2 months. Additionally, he said that he has taken a loan of about ₹2.2 lakh against mutual funds worth around ₹6 lakh that are currently pledged.
The techie admitted that he has almost no cash left in his bank account and no emergency fund. “I know I made mistakes. I relied on EMIs because there were too many expenses hitting at the same time, and now I have been living paycheck to paycheck for a few months, despite earning what many people consider a good salary,” he wrote.
While he said the end of his credit card EMIs in 2 months would provide some relief, he asked fellow Reddit users how they would approach recovering financially over the next 2-3 years.
“If you were in my position, what would your recovery plan look like over the next 2-3 years?” he asked, adding, “Please be brutally honest. I’m not looking for sympathy or validation.”
(Also Read: ‘Sometimes comfort is not enough’: Bengaluru techie on returning to India after 6 years in Germany)
What did social media say?
The post drew several responses, with many users urging him to cut expenses and aggressively repay debt.
One user wrote, “Consolidate all your debts first, keep your expenditure to the essentials only for a few months,” one user suggested.
“Pick up freelance work, use most part of that money to first build emergency fund and then pay off the loan,” suggested another.
“You are paying 80k for debt and remaining 1.2 L going towards your expenses. I believe you have to focus that one. Your debt is temporary and you will be out in two months. But you are spending 60% of your income to Needs/Wants which is highest danger as of now. Start to track your expenses is the first step to reach your financial freedom. Understand your spending, follow 50/30/20 rule and try to fit your expenses according to rule and cut unnecessary expenses,” advised one user.
“First of all list down all the debts ( principal plus interest ) and decide the runway to get out of the debt. Divide it on monthly basis. From your 2 lacs, pay 1.5 lacs and close your EMI accounts. You have to cut down the lifestyle and forget that the concept of EMI exists. If you do not fix the mindset now, you will be sinking in debt furthermore,” said another.
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)
