Debt Spiral in Urban India
According to Mukund, the availability of easy loans from banks, coupled with aspirations for better lifestyles and home ownership, has led to an alarming rise in debt burdens. Today, he observed, nearly 40–50% of urban salaries are swallowed by EMIs and insurance premiums, almost double the conventional safe threshold of 25–30%.
What once felt like a confident financial decision, especially before the pandemic when double-digit salary hikes were common, has now become a source of pressure. With layoffs, muted appraisals, and salary increments down by nearly 5%, many employees are struggling to balance debt with essential expenses such as children’s education and healthcare.
Shift in Job-Hopping Motives
The startup founder also flagged a fundamental shift in employment trends. Pre-pandemic, job switches were often driven by ambition, better titles, or aspirational growth. Now, Mukund noted, employees are moving jobs primarily to survive financially, often seeking a 25–30% salary hike just to keep up with rising EMIs. “Dream homes are turning into burdens,” he cautioned, adding that this signals a lifestyle crisis that could worsen in the coming years.
Social Media Reactions
Mukund’s post drew strong responses from professionals and observers.
One user described it as “a crisis waiting to unfold” and urged employees to go back to basics: “Spend less, save more, and prioritise family and health.”
Experts say the post-pandemic financial landscape has exposed the fragile balance between income and lifestyle aspirations in India’s urban middle class. With rising costs, shrinking increments, and heavy borrowing, the urban workforce may be heading toward a prolonged debt trap unless corrective steps such as financial discipline and restructuring of loan products are encouraged.
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