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A Pune-based operations manager earning Rs 90 lakh per month slides into a debt cycle of Rs 15 lakh after an unexpected family medical emergency reshuffles his finances.
The use of loans and credit cards slowly pushes him into increasing repayment stress. (representational image)
For many people, debt is often associated with careless spending or bad financial habits. But a recent LinkedIn post shows a different case, where a man fell into significant debt even while trying to carefully manage his finances.
The post, shared by a financial advisor, explains how the Pune-based COO slowly got into a debt cycle. Even with a steady income and controlled spending, an emergency changed his entire financial situation.
Medical emergencies throw the monthly budget off track
“A 36-year-old operations manager from Pune earns Rs 90 lakh a month, and now he owes Rs 15 lakh, even though he has never taken a rash financial decision. 3 years ago, he was earning Rs 90 lakh and spending Rs 82 lakh on essentials,” investment advisor Vivek wrote on LinkedIn.
Explaining the turning point, the consultant added: “Then his father needed an urgent surgery at a cost of Rs 5 lakh. He took out a personal loan at 14% interest, with an EMI of Rs 13,663 per month. This single decision quietly smashed his budget. His monthly expenses rose from Rs 82,000 to nearly Rs 96,000, against the same income of Rs 90,000. He was now short every month.”
Using a credit card adds to the growing stress
To manage the shortage, the man began using credit cards for daily needs such as groceries and fuel.
“Within a year, this balance reached Rs 4 lakh, with a minimum payment of Rs 20 lakh at 40% interest. So he took out a second loan of Rs 6 lakh to consolidate the mess, but since his credit score was already low, this loan came at 18%, and the monthly installment was Rs 17,625.”
The cycle of debt deepens over time
Over the next two years, the situation worsened as new loans were taken out to pay off old ones. The total debt exceeded Rs 15 lakh, with “57% of his take-home salary”, about Rs 51,000, going towards the EMIs.
“Every new loan paid off the old ones,” the consultant said, describing how the cycle continued.
“If your EMIs are already higher than 40% of what you take home, take that as a warning,” he also warned. He advised stopping new loans first, then listing all debts and eliminating the high interest on them step by step.
Social media reacts to the situation
The post was followed by an online discussion, where users shared their thoughts and lessons from similar experiences.
One person wrote: “I always tell people – create an emergency fund before you need it. Because it is much cheaper than borrowing later.” Another wrote: “The line about each new loan paying off the old one sums it up. By then you won’t have solved the problem, just buying time.”
One person commented: “This is an important reminder. I’ve seen that financial stress is rarely caused by one big mistake. It’s usually a series of small decisions made when options seem limited.”
One said: “Debt spirals are rarely the result of one big mistake. They are usually the result of small compromises made month after month.”
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