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Meet Priya: The Woman Who Cleared βΉ20 Lakh Debt in Just 2 Years
Debt repayment journeys are rarely smooth. Priya, a 32-year-old marketing professional from Bengaluru, found herself buried under βΉ20 lakh debt. Sleepless nights, stress-filled mornings, and the constant fear of missing EMIs had become her reality. Yet, within 24 months, she turned her story around. Hereβs exactly how she did itβstep by step.
Priyaβs Debt Profile
Like many young professionals, Priya had taken on multiple loansβcredit card debt for lifestyle spends, a personal loan for medical expenses, and a car loan. The high-interest credit card debt was draining her finances the fastest.
| Type of Loan | Outstanding Amount | Interest Rate (p.a.) |
|---|---|---|
| Credit Card | βΉ5,00,000 | 36% |
| Personal Loan | βΉ10,00,000 | 18% |
| Car Loan | βΉ5,00,000 | 12% |
The Strategy Priya Used
Instead of making random payments, Priya adopted a focused repayment strategy while reshaping her lifestyle. Hereβs how she executed her plan:
| Step | Action | Real-Life Application |
|---|---|---|
| 1 | Debt Avalanche Method | Attacked credit card dues (36%) first, paying much more than the minimum while just maintaining EMIs on other loans. |
| 2 | Income Boost | Took freelance projects on weekends, adding an extra βΉ30,000/month. She often worked late nights to make this happen. |
| 3 | Expense Cuts | Moved to a smaller rented house, cooked meals at home, and slashed luxury spending, freeing up βΉ20,000/month. |
| 4 | Automated Discipline | Set up auto-debits for EMIs and credit card dues, ensuring she never missed payments. |
| 5 | Emergency Cushion | Saved βΉ1,00,000 separately for emergencies to avoid falling back on credit cards. |
Results After 2 Years
Her disciplined approach paid off. By month 24, Priya was debt-free and emotionally lighter. Hereβs a snapshot:
| Loan Type | Status After 24 Months |
|---|---|
| Credit Card | β Cleared in 8 months |
| Personal Loan | β Cleared in 18 months |
| Car Loan | β Cleared in 24 months |
Repayment Timeline
Month 0 β Overwhelmed & Stressed
Starting point: βΉ20,00,000 total debt. Priya was anxious but determined to change.
Month 8 β Credit Card Freedom
Credi
t card debt gone! This gave her huge relief and boosted her motivation.Month 12 β Halfway Mark
Personal loan down to βΉ6 lakh. Debt reduced by almost 50%.
Month 18 β Personal Loan Cleared
Freelance income plus lifestyle changes helped clear personal loan completely.
Month 24 β Debt-Free Life
Car loan
cleared. Priya is now free from all EMIs, saving βΉ40,000+ every month.Repayment Tracker (Every 6 Months)
| Timeline | Credit Card Balance | Personal Loan Balance | Car Loan Balance | Total Debt Remaining |
|---|---|---|---|---|
| Start | βΉ5,00,000 | βΉ10,00,000 | βΉ5,00,000 | βΉ20,00,000 |
| 6 Months | βΉ1,00,000 | βΉ9,00,000 | βΉ4,80,000 | βΉ14,80,000 |
| 12 Months | βΉ0 | βΉ6,00,000 | βΉ4,50,000 | βΉ10,50,000 |
| 18 Months | βΉ0 | βΉ0 | βΉ3,00,000 | βΉ3,00,000 |
| 24 Months | βΉ0 | βΉ0 | βΉ0 | βΉ0 |
Quick Takeaways for You
- Target high-interest loans first (like credit cards).
- Donβt rely only on cutting costsβincrease income too.
- Automate payments to build repayment discipline.
- Remember: short-term sacrifices can mean long-term freedom.
π‘ Quick Tips You Can Apply Today
- Track every rupeeβbudgeting apps can make it fun and visual.
- Cancel or pause unused subscriptions immediately.
- Turn hobbies into side hustlesβteaching, freelancing, or consulting.
- Use bonuses, gifts, or tax refunds to make lump-sum payments.
- Celebrate small winsβreward yourself (low-cost treats) after clearing each loan. ul>
β‘ Quick Payoff Estimator
π EMI Breakdown (Optional)
Use the same inputs above and click Generate. This shows month-by-month interest, principal, and balance until payoff.