Earning Rs 2.5L a month but 71% goes to EMIs. How do I get out of this debt trap?

Published 29 September 2026

Chandana from Delhi
I have 9yr of experience in IT and take home about Rs 2.5L a month.

On paper I earn well, but I feel completely stuck.

I have a home loan for a Rs 3Cr house, a car loan for a Jeep Meridian, and a personal loan I took for a Europe tour.

My fixed financial commitments consume 71% of my total salary.

How do I fix this and build actual wealth?
Mohan Gupta Mohan Gupta Co-founder Foliyo AI, NISM Series X-A, X-B, XXI-A Certified LinkedIn
Income is only half the wealth equation; your spending behavior dictates the rest. Right now, you are highly leveraged and incredibly vulnerable to any financial shock. Committing 71% of your salary to fixed EMIs means you are operating under the optimistic assumption that your salary will never be interrupted.

To see how dangerous this is, compare your situation to someone earning the exact same Rs 2.5L in-hand, but with a different mindset. They might buy a Rs 1Cr home, drive a Honda City, and carry absolutely no personal loans. Their fixed commitments remain at a manageable 32% of their salary, giving them massive financial breathing room.

Even someone earning just Rs 1L a month can build more wealth than you if they keep their rent and bike EMI to 30% of their income, leaving 45% to 50% available for investing. To fix your situation, you need to escape the societal autopilot that tells you to buy a bigger house and a luxury car just because your salary increased.

You must aggressively pay down that high-interest personal loan first. Then, focus on building an emergency fund, because right now, being tethered to your job with zero liquid buffer is your biggest risk.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.
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