Why many from Gen Z find themselves in debt traps

Feb 24, 2026 | 18:59 IST

Image: AI

Racking up Rs 30-40 lakh in debt while on salaries of Rs 30,000-40,000, India’s youngest borrowers are living on the edge

When Pune-based Vidyut Sharma took up freelance photography at 19, in 2016, he had no idea he was headed for a debt trap. Small loans to buy photography equipment snowballed into a nearly Rs 40 lakh debt spread across 54 loan accounts over 4-5 years.

“I was getting so many offers for instant loans, but didn’t foresee the distressing consequences of missing EMIs,” says the 29-year-old who approached a debt counselling firm last year after being bombarded by 15-20 calls every day and harassed by lenders’ homes visits. Today, his debt is down to nearly Rs 5 lakh.

TOI

TOI

Why many from Gen Z find themselves in debt traps

Racking up Rs 30-40 lakh in debt while on salaries of Rs 30,000-40,000, India’s youngest borrowers are living on the edge

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TOI

Why many from Gen Z find themselves in debt traps

Racking up Rs 30-40 lakh in debt while on salaries of Rs 30,000-40,000, India’s youngest borrowers are living on the edge

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