Budgeting
How to Get Out of Debt Fast on an Indian Middle Class Salary
Start a debt plan with balances and costs, not with guilt. A clear list makes it easier to decide which action reduces pressure.
1. Create one repayment table
For each debt, record balance, interest rate, minimum payment, due date and any overdue amount. Include credit-card balances and informal obligations. Separate required monthly payments from optional extra repayments.
2. Protect essentials and minimums
Work out what remains after necessary living costs and required payments. If the result is negative, contact lenders early about available arrangements; do not assume another loan solves the shortfall. Keep emergency cash accessible enough to avoid borrowing for the next small disruption.
3. Compare repayment approaches
With a positive surplus, paying the highest-cost debt first generally reduces interest under otherwise equal terms. Clearing a small balance first may help motivation. Check prepayment charges and consequences before acting, and verify any settlement terms in writing.