Expert Panel Survey Finds 60% of Borrowers Face Severe Debt

A survey by the debt and loan resolution platform Expert Panel reveals a precarious debt cycle among borrowers, with 60% reporting that their monthly Equated Monthly Installments nearly equal or exceed their total family income. The data shows that 40% of these individuals rely on new loans or credit cards to manage existing debt obligations.

While medical emergencies and family expenses are the primary drivers of borrowing, the platform warns that upcoming festive-season spending could further destabilize financial situations. Repayment stress is high, with 31% of defaults linked to salary reductions or job losses. Additionally, 35% of borrowers reported harassment from lenders, including home visits and the use of abusive language.

Anurag Mehra, Director of Expert Panel, cautioned consumers to evaluate their repayment capacity before taking on additional credit. He noted that festive spending is often driven by emotion and social expectations, but warns that a loan converts a one-time expense into a recurring financial commitment.