Earning Rs 2 Lakh Monthly But 'Drowning In Debt', Techie Seeks Help: 'I Made Mistakes'

A techie has sought the internet's help after claiming to be 'drowning in debt' despite earning Rs 2 lakh monthly. The 27-year-old techie said he should have been 'financially comfortable' given his high-paying job, but instead he was struggling and did not know the right way to manage his finances as he had zero rupees in his savings account.

The techie explained that the debt rose in the last year after he got married. Some unavoidable family situations and commitments required significant financial support, which worsened the debt situation.

"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," the techie wrote in a social media post.

After his wife recently lost her job, the techie said they were now managing on a single income with expenses coming thick and fast every month. The techie said he was paying Rs 25,000 each month against a Rs 20 lakh loan from a relative in addition to several other obligations.

"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," the techie said.

Adding that he had no emergency fund, the techie admitted to making mistakes and sought genuine advice instead of sympathy from the users.

"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?"

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Earning ₹2L/month but drowning in debt, need advice
by u/lonewolf_2298 in FinancialAdviceIndia

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'Take A Deep Breath'

Social media users advised the techie to consolidate his debt in one place and start by paying off loans with the highest rate of interest.

"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!" said one user, while another added: "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 third commented: "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."

A fourth said: "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."