How I came out of the debt trap
Rohit Prabhu

I love buying new gadgets. If the latest phone or tablet or headphone has been launched, I have to buy it. My friends know me as the ‘gadget guru’ and I have a reputation to maintain. I have been doing this over the last few years without a care in the world.

However, last year I realised that I owed around Rs 2.5 lakhs as credit card debt. This was primarily because I would only pay the minimum amount due. Due to my lack of understanding about personal finance, I kept wondering how come this happened.

Once I started reading up, I realised that by paying the minimum amount due, I was helping the credit card company charge interest on my pending outstanding which snowballed into a huge amount over a period of time. My parents were considerate and helped me to arrange 50% of the amount. I sold some of my old gadgets and took an advance from my employer to arrange for the remaining funds. In September 2018, I paid off my credit card debts completely and then started focusing on creating savings.

My father explained the importance of investing in mutual funds and I realised that they offer attractive returns over a longer term. I have started investing 60% of my savings in mutual funds since then and I am happy to note that I am in the right path towards attaining financial independence.

How I did it

Corporate Executive

Invest wisely and invest early, to make sure that you live tension free in your later life. I am working towards it, or at least that’s what I hope. I managed to save a small portion of my earning even when I was earning very little like an early jobber. I still have those low-risk… Read more


Credit cards are your friend, but only if you use them wisely. If you start spending over and above your means, you fall into the dreaded credit trap, where you earn only to pay off your previous month’s dues. And end up using credit to meet the current month’s expenses. I am reasonably… Read more

Sales Manager

As a newly married person, I wanted only the best for my household. So when we started getting our new life decorated with things that every household requires, we splashed the cash generously. This was over and above the lavish wedding that we had spent for earlier on. Most of it was our own… Read more

Financial Specialist

I had started working four years ago. I would like to believe that I am still in that age bracket where people earn to spend and not necessarily save. However, there have been occasions where I have genuinely regretted spending on something and often pondered what would have become of the money… Read more