How much debt is too much for a salaried person in India?

Short answer
For a salaried person in India, debt becomes risky when total EMIs cross 40 per cent of monthly income. Beyond this, even minor issues can cause stress.

The Safe Debt Rule

A simple thumb rule is:

• Up to 30 per cent of income in EMIs is comfortable
• 30–40 per cent is manageable but needs discipline
• Above 40 per cent is risky

This includes all EMIs like home loan, personal loan, car loan, credit card EMI. Jab EMIs zyada ho jaate hain, savings aur emergencies ke liye jagah nahi bachi rehti.

Why High Debt Becomes a Problem

High debt reduces flexibility. A salary delay, medical expenses, or a job change can immediately create pressure. Many people feel fine initially but slowly cash flow tight ho jaata hai. Stress tab aata hai jab sab kuch fixed ho aur income mein thoda bhi hiccup ho.

Loan Type Also Matters

Not all debt is equal.
Home loan is usually okay because it is long-term and lower interest.
Personal loans and credit card dues are risky because interest high hota hai.
Agar unsecured loans ka share zyada hai, debt level dangerous ho sakta hai even at a lower EMI ratio.

Warning Signs You Should Watch

• Using credit cards to pay regular expenses
• No emergency savings
• Salary aate hi EMI nikal jaati hai
• New loan lene ka thought sirf old EMIs manage karne ke liye

Yeh signals ignore nahi karne chahiye.

What You Can Do

Try to reduce high-interest loans first. Avoid taking new loans till EMIs come down. Build at least a 3–6 months emergency fund. Thoda control se situation improve ho jaati hai.

Final Takeaway

Debt is too much when it controls your choices. If EMIs are above 40 per cent of income or causing constant stress, it is time to slow down and reduce loans. Comfortable debt supports life. Heavy debt runs it.