Last Updated:
Despite earning Rs 2 lakh every month, a 27-year-old techie says one year of family responsibilities, moving cities and mounting loans has left him with zero savings
His Reddit post sparked advice. (representational image)
A software professional earning Rs 2 lakh a month has shared how he ended up buried in debt despite having what many would consider a dream salary. In a post on Reddit, the 27-year-old admitted that poor financial decisions and unexpected expenses left him with no savings and several loans to repay.
Instead of looking for sympathy, he asked people online for practical advice on how to recover over the next two to three years. His post soon drew attention, with many users offering suggestions on managing debt and rebuilding his finances.
How The Debt Kept Growing
The techie explained that things changed after he got married. Over the past year, he had to provide financial support to his family due to unavoidable situations, which added to his existing responsibilities.
He also said that around eight to nine months ago, he and his wife moved out of his parents’ home and shifted to another city. Setting up a new house from scratch turned out to be much more expensive than they had expected.
“Around 8-9 months ago, my wife and I moved out of my parents’ house and shifted to another city. Setting up a completely new home from scratch (rent, furniture, appliances, kitchen, deposits, etc.) cost much more than we expected,” he wrote.
The situation became more difficult after his wife lost her job. Since then, the couple has been relying on a single income while trying to manage several monthly payments.
Several Loans, No Savings
The Reddit user shared a detailed picture of his finances. Apart from paying Rs 25,000 every month towards a Rs 20 lakh loan taken from a relative, he also has a personal loan and multiple credit card EMIs.
“Personal loan with EMI of around Rs 25,000/month. Credit card EMIs totalling around Rs 30,000/month (these will end in the next 2 months). Mutual funds worth around Rs 6 lakh are pledged, and I’ve taken a loan of about Rs 2.2 lakh against them,” he wrote.
He admitted that he has no emergency fund and zero savings. Calling his financial decisions mistakes, he said he wanted honest advice instead of people feeling sorry for him.
“The good thing is that the Rs 30k/month credit card EMIs will end in the next two months, which should give me some breathing room. But I’m confused about the best way forward and recover from it. If you were in my position, what would your recovery plan look like over the next 2-3 years?”
Reddit Users Share Their Advice
Many people in the comments encouraged him to stay calm and focus on clearing the most expensive debt first.
A user wrote, “Consolidate all your debts first, keep your expenditure to the essentials only for a few months. Just a few months you will all be set unless there is no new investment! Invest when you are saving don’t take loan and invest just a free advise, leaving at your discretion!”
Another suggested, “I would try to see if the relative can lessen the interest. Stop using credit cards. Ask the wife to search for a job. Cut off all the unnecessary expenses.”
A person commenter said, “First, take a deep breath. Once your CC loans are cleared, you will get some breathing room. Pause all unnecessary trips, and expenses for a year and build a 6-month emergency fund, and you can continue investing and not make the same mistakes again.”
Another user added, “Loved the fact that you are not looking for validation. And someone who has faced a severe financial crunch. I would firstly see which loan is taking the most money off me. The highest interest rate goes first.”
One suggested strategy to manage high-interest debts is to consolidate them. Another approach is to prioritize clearing the debt with the highest interest rate first.
About the Author
A team of writers at News18.com bring you stories on what’s creating the buzz on the Internet while exploring science, cricket, tech, gender, Bollywood, and culture.
Read More
