Stuck in a Debt Trap


KF Rookie
Hello everyone,

I was jobless for about 6 months. Now, I have a job with a salary of 30,000 INR and a debt of around 2 lakhs. I can comfortably manage this debt, but the problem is that it's spread across multiple accounts, including two credit cards, Slice, Paytm Postpaid, and other similar pay later services.

Initially, I didn't anticipate my debt would grow this much, and it keeps getting worse. I'm paying almost +3% interest on this amount. I'm considering getting a personal loan (if possible) to close all these accounts.

It's becoming increasingly difficult to manage these multiple accounts, as I pay the 100% amount of each account before the due date with the help of a friend and then immediately borrow from the same account to avoid late charges.

My financial situation is as follows:
  • Salary: 30,000 INR
  • Monthly Expenses: 15,000 INR

I'm prepared to pay 15,000-12,000 INR for EMIs if I obtain a personal loan. I'm seeking advice on how to escape this cycle of debt.


KF Ace
Yes, you should take a personal loan instead of revolving on credit cards. Also, as far as I know, Paytm Postpaid also charges higher side interest rate, as do all pay-later programs

I would suggest you go to a bank or a reputed digital lending organisation and try to get a loan of the amount required. The technical term for this is "debt consolidation", and it is usually seen positively by banks and NBFCs.

First step, I would suggest you try the bank(s) from which you have your credit cards. If that doesn't work, try elsewhere, but I would suggest make sure your rate of interest on your loan is below maybe 20%.

A rough calculation will give:

Loan Amount: 2,50,000
Rate of Interest: 20% p.a.
Loan Tenure: 24 months (2 years)

EMI: 12,724 per month.


Staff member
Hi, getting a Low Interest Rate Personal Loan is a good strategy to cover your existing debt repayment. Just a couple of points to add here

- Check with your Company first before approaching a Bank. Many Companies offer Personal Loan worth 3-4X your monthly salary and usually these Loans are very low cost

- Categorise all your liabilities as per Interest Rate charges. Try to pay off the ones which have Highest Interest Rate first.