<\/p>
A striking example shared by SEBI-registered investment advisor Abhishek Kumar is sparking fresh conversations about India\u2019s growing personal debt problem \u2014 especially among salaried professionals relying heavily on digital lending platforms.\u00a0<\/p>
In a recent LinkedIn post, Kumar described a real financial situation in which an individual earning \u20b92 lakh a month is paying \u20b93.3 lakh in monthly EMIs, effectively spending \u20b91.3 lakh more than their income every month.\u00a0<\/p>
According to the advisor, such cases are no longer rare.\u00a0<\/p>
\u201cThis isn\u2019t a hypothetical,\u201d Kumar wrote, adding that during his 15 years as an investment adviser, he has repeatedly seen people who \u201clook rich\u201d on the surface but are actually drowning in multiple loans, particularly from fintech lending apps.\u00a0<\/p>
Hidden cost of \u2018looking rich\u2019\u00a0<\/strong><\/p> The case highlights a broader issue emerging in India\u2019s urban middle class\u2014easy access to digital credit combined with social pressure to maintain a certain lifestyle.\u00a0<\/p> Kumar described the situation bluntly: when someone pays significantly more in EMIs than they earn, they are not just financially stressed but effectively in a \u201cfinancial ICU\u201d.\u00a0<\/p> Even when borrowers receive a financial windfall, repairing the situation can be difficult. In the example Kumar shared, the borrower was expecting \u20b918 lakh from chit funds, but a damaged credit score prevented them from consolidating loans into a cheaper, single borrowing option.\u00a0<\/p> A five-step \u201cbattle plan\u201d to escape debt\u00a0<\/strong><\/p> Kumar proposed a structured strategy to stabilise such a financial crisis, focusing first on improving cash flow rather than chasing lower interest rates.\u00a0<\/p> 1. Clear the smallest loans first: <\/em>The first step involves using about \u20b95 lakh from the incoming funds to eliminate six to seven small loans.\u00a0Kumar calls these \u201cmosquito loans\u201d \u2014 numerous small debts that collectively create psychological and financial pressure.\u00a0<\/p> Removing them reduces the number of active liabilities and simplifies repayment.\u00a0<\/p> 2. Reduce the EMI burden quickly:<\/em> Paying off these smaller loans can cut monthly EMIs by roughly \u20b985,000, reducing the total EMI from \u20b93.3 lakh to around \u20b92.5 lakh.\u00a0That change alone can create breathing room in monthly finances.\u00a0<\/p> 3. Exit the fintech loan trap:<\/em> The next priority is clearing high-interest digital lending apps such as EarlySalary and Krazeebee, which Kumar says are designed to keep borrowers cycling through repeated borrowing.\u00a0<\/p> These loans often carry high interest rates and frequent repayment schedules, making them particularly stressful for borrowers.\u00a0<\/p> 4. Attack one large bank loan:<\/em> When the remaining \u20b913 lakh from the windfall arrives, Kumar advises borrowers to fully close one large loan with the biggest EMI, rather than spreading payments across multiple debts.\u00a0<\/p> Eliminating a major loan can significantly improve a borrower\u2019s debt-to-income ratio, making future refinancing or restructuring easier.\u00a0<\/p> 5. Close the credit lines completely:<\/em> Finally, Kumar stresses that borrowers should obtain a No Objection Certificate (NOC) from lenders and formally close those credit accounts.\u00a0<\/p> Leaving unused credit limits open increases the temptation to borrow again during financially tight months.\u00a0<\/p> A behavioural problem, not just a math problem\u00a0<\/strong><\/p> Beyond calculations, Kumar argues that debt management ultimately comes down to behaviour.\u00a0\u201cDebt isn\u2019t just a math problem; it\u2019s a behaviour problem,\u201d he wrote.\u00a0<\/p> Financial planners increasingly warn that easy digital lending, buy-now-pay-later services, and instant loan apps are changing borrowing habits in India, making it easier for salaried professionals to accumulate multiple small loans without fully understanding the long-term impact.<\/p> <\/div> fintech debt trap India, high EMI debt case India, personal loan crisis India, how to escape debt India, fintech loan apps India, loan issues, loan debt, investment advisor debt advice, managing multiple loans India, EMI burden India#lakh #EMI #lakh #salary #Advisor #warns #rising #fintech #debt #trap #among #earners1775209353<\/p> ","protected":false},"excerpt":{"rendered":" A striking example shared by SEBI-registered investment advisor Abhishek Kumar is sparking fresh conversations about India\u2019s growing personal debt problem \u2014 especially among salaried professionals relying heavily on digital lending platforms.\u00a0 In a recent LinkedIn post, Kumar described a real financial situation in which an individual earning \u20b92 lakh a month is paying \u20b93.3 lakh […]<\/p>\n","protected":false},"author":1,"featured_media":5761,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[19652,2868,3725,21512,12253,21511,13938,21502,21506,21503,21505,21509,2052,21508,21507,21510,21504,5536,3013,3726,326],"class_list":["post-5760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-advisor","tag-among","tag-debt","tag-earners","tag-emi","tag-emi-burden-india","tag-fintech","tag-fintech-debt-trap-india","tag-fintech-loan-apps-india","tag-high-emi-debt-case-india","tag-how-to-escape-debt-india","tag-investment-advisor-debt-advice","tag-lakh","tag-loan-debt","tag-loan-issues","tag-managing-multiple-loans-india","tag-personal-loan-crisis-india","tag-rising","tag-salary","tag-trap","tag-warns"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/5760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5760"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/5760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/5761"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5760"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}