A Pune professional’s journey from financial stability to a ₹15 lakh debt spiral has gone viral after Vivek S G (Sulegai), founder of Wealth Crafts and a SEBI-registered investment advisor, shared the story on to explain how debt spirals often begin.
In the post, Vivek described how a 36-year-old operations manager earning ₹90,000 a month gradually accumulated ₹15 lakh in following a family medical emergency.
“A 36-year-old operations manager from earning ₹90,000 a month is now ₹15 lakh in debt, though he never made a reckless financial decision,” he wrote.
According to the advisor, the man’s financial situation had initially been manageable. Three years ago, he earned ₹90,000 each month while spending around ₹82,000 on essential expenses.
“3 years ago, he was earning ₹90,000 and spending ₹82,000 on essentials. Tight, but workable,” Vivek wrote.
The turning point came when the man’s father required urgent surgery costing ₹5 lakh.
“Then his father needed urgent surgery costing ₹5 lakh. He took a personal loan at 14%, with an EMI of ₹13,663 a month.”
Vivek said the additional EMI pushed the man’s monthly expenses beyond his income.
“That single decision quietly broke his budget. His monthly outgo went from ₹82,000 to nearly ₹96,000, against the same ₹90,000 income. He was now short every month.”
Check out the post here:
How The Debt Grew
According to the post, the operations manager began relying on his credit card to cover routine expenses such as groceries and fuel. Within a year, the outstanding balance had reportedly reached ₹4 lakh.
“To cover the gap, he leaned on his credit card for groceries and fuel. Within a year, that balance hit ₹4 lakh, with a ₹20,000 minimum payment at 40% interest.”
Seeking relief, he reportedly took another loan worth ₹6 lakh to consolidate the debt. However, Vivek said his declining credit score meant the new loan came with a higher interest rate.
“So he took a second loan of ₹6 lakh to consolidate the mess, but because his credit score had already dropped, this one came at 18%, and the EMI was ₹17,625.”
The advisor said the cycle eventually became self-sustaining.
“Within 2 years, his debt crossed ₹15 lakh, and his monthly debt servicing alone was ₹51,000, which was 57% of his take-home salary. Every new loan was paying off the old ones.”
Explaining the pattern, Vivek wrote, “This is how a debt spiral works. One loan adds an EMI, which shrinks your cash flow, which forces the next loan.”
He also identified three factors that, according to him, accelerate a debt spiral:
“1. Credit card interest at 35-40% that barely touches the principal
Late fees that get added to the balance
Falling credit score that makes every new loan costlier.”
Warning Signs And Advice
The investment advisor said borrowers should view high monthly loan repayments as an early warning sign.
“If your monthly EMIs are already above 40% of your take-home, treat it as a warning.”
He suggested avoiding additional borrowing and instead assessing existing liabilities.
“Stop taking new loans immediately, then list every balance and interest rate you owe and start clearing the highest-interest debt first.”
Vivek concluded the post by offering financial planning assistance to those struggling with debt.
“If you’re stuck in a debt cycle and don’t know where to start, DM me. I offer fixed-fee planning. No commissions, no incentive to tell you what you want to hear.”
Social Media Reacts
The post drew a wide range of reactions, with many users saying the story reflected how financial distress often develops gradually rather than through a single poor decision.
“The hardest part is that from the outside, this person still looks ‘financially responsible.’ Debt spirals rarely begin with bad decisions. They often begin with life happening at the worst possible time, and not having enough margin to absorb it,” one user wrote.
Another commented, “Debt spirals are rarely caused by one big mistake. They’re usually the result of small compromises made month after month.”
Explaining the importance of financial preparedness, another user wrote, “I always tell people – build an emergency fund before you need it. As it is much cheaper than borrowing later.”
A fourth user said, “Such an important reminder. I’ve seen that financial stress is rarely about one big mistake. It’s usually a series of small decisions made when options feel limited.”
Another added, “The warning signs usually appear much earlier. Many difficult situations begin with good intentions, making disciplined Cashflow planning even more important over time.”