A big crisis will come on middle class families of the country, a CA told shocking truth

Middle class growth: India’s middle class is considered the backbone of the country’s economy. However, this middle class is now constantly drowning in debt. But the reason for this is this middle class. Wealth Advisor Tapas Chakraborty has posted about the middle class on LinkedIn. He has written in his post that India’s middle class is not as concerned about inflation or tax as EMI.

Chakraborty says that people earn, then borrow, then repay it and this series goes on. Because of this, they are unable to save and are ready to borrow again. Due to this, the debt burden on the middle class is also increasing.

Now everything is on EMI

Earlier EMI was used only to buy the necessary items. But now this has become common. Chakraborty has written that today everything from phone to fridge, sofa, AC, flight tickets is being found on EMI. Even grocery items are available on EMI. Nowadays, without more papers, only a loan is available from swipe. Because of this, borrowing people is common.

EMI debt is increasing

But the reality is something else. Public debt in India has increased to 42% of GDP. 32.3% of this debt is insecure. Such as credit cards, personal loans and services like Buy Now, Pay Later. 70% of people using iPhone in India bought it on EMI. About 11% of the people taking small loans have failed to pay the money. Three out of five people are taking three or more loans simultaneously.

Chakraborty says, “We are not only spending, but are also increasing our debt gradually.” Every EMI may look small, but when both are combined together, it becomes a huge amount. For example, a phone can be priced at Rs 2,400 per month, laptop Rs 3,000, bike Rs 4,000 and credit card bill can be more than Rs 6,500. By the middle of the month, all this can be Rs 25,000. Because of this people are unable to save. And if a medical emergency comes, everything goes wrong.

This will affect the progress of the country

Chakraborty also said that this is not just a family problem. Low savings will reduce investment in the country, more debt will default more and increase stress will affect the ability to work. He wrote that if the middle class is upset with this, then the progress of the country will slow down. This will affect not only a family, but on all.

4 ways to avoid this

To avoid this trap, he has given four easy ways: First, see how much EMI you are filling every month. If this is more than 40% of your monthly income, stop and think again. Second, create an emergency fund, even if you deposit only 500 rupees every month. Third, do not borrow for just showing. And fourth, start investing quickly, even if it is a small amount.