Man with Rs 22,800 monthly EMI on Rs 30,000 salary asks: 'Should I take another loan?'

A Reddit user has described his “bad situation” when he got caught in a debt trap while earning a monthly salary of Rs 30,000.

In a post titled “Should I take a loan to clear my existing debt?”, the user detailed his current financial situation, highlighting the growing concern over personal loans and dependence on credit among India’s urban middle class.

The user wrote that he is currently paying Rs 22,800 per month on four active loans. These include EMIs of Rs 7,500, Rs 5,000 (which will soon increase to Rs 10,000), Rs 2,000, and Rs 8,300 for a personal loan from the State Bank of India.

To compound the problem, the user pointed out that his essential monthly expenses already eat up his entire salary, leaving no room for savings or emergency expenses. He cited spending on basic necessities such as food, medicines, medical checkups, electricity and phone bills, and said that he avoids all non-essential expenses such as alcohol or clothing.

Now, as his financial situation is worsening, the user said that he is considering a new loan of Rs 3 lakh offered by SBI. If this loan is taken, he will be able to close all existing loans and consolidate his monthly payments into a single EMI of Rs 8,300, which is equal to his existing SBI loan.

In his post, the user asked Reddit if this move would be wise or financially harmful in the long run.

Have a look:

Reactions

In the comments section, some users urged caution, warning that while consolidation may ease the immediate pressure, it could eventually increase the total interest to be paid.

"You have already paid high interest on your existing loans. Now, taking another loan means you will have to pay more overall," said one user.

Another user wrote, "Start repaying high-interest loans first. Try to repay one loan as quickly as possible, even if it means sacrificing for a few months. Don't rush into taking a new loan unless it is very urgent."

However, many users supported the idea of ​​taking a new SBI loan, provided it is handled with strict financial discipline. "If you use the entire Rs 3 lakh to repay only your existing loans and avoid taking any new loans, it can really help. You will reduce your EMI burden and free up some cash flow," a user said.

Another said, "This move can simplify your finances and give you space to create a small emergency fund, but only if you avoid getting trapped in debt."

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