The Wake-Up Call
I woke up to the sound of my phone ringing at an ungodly hour. “Who is calling this early?” I wondered. It was a friend.
“What happened?” I asked, sensing the urgency. “Someone close to us has committed suicide,” he replied, his voice heavy. “Why?” “I don’t know. There is a letter in his pocket; the police need to examine it.”
I rushed to the scene immediately. The sight was heart-wrenching. He had sent his wife and children away to a relative’s house the previous day before taking this drastic step. As the police procedures progressed, the contents of the suicide note were revealed: “The debt is beyond what I can bear. I can no longer hold on. No one else is responsible for my death.” None of us knew. To the outside world, everything seemed fine.
As time passed, the tragedy deepened. Creditors began to arrive one by one. Some stood frozen, not knowing what to do. Others, fueled by anger and panic, demanded to know who would repay them. A few lamented, “I gave him my savings to help him out, now it’s gone.” One man confessed in despair, “I borrowed from someone else to lend to him. What will I do now?”
How can a widow with no income and two small children answer these questions? There lay the deceased, leaving behind a shattered family and a mountain of debt. We all stood there, utterly helpless.
The Kerala Paradox: High Literacy, Higher Debt
Debt is a global challenge, but in India, and specifically in Kerala, it has evolved into a social crisis. Kerala boasts the highest literacy rates, excellent healthcare, and top-tier living standards in the country. Yet, it also holds the dubious distinction of having some of the highest family debt rates in India—nearly double the national average.
As our lifestyle changed, our cost of living skyrocketed. But the real problem isn’t just inflation; it is the psychology of spending.
The Traps We Build for Ourselves
1. The “Comparison” Culture We no longer buy things because we need them; we buy them because our neighbor has them. If they buy a car, we need a bigger one. If they buy a TV, ours must be smarter. We blindly chase advertisements and offers, swiping credit cards or signing up for EMIs without a second thought.
2. The Cycle of Rolling Debt Many families juggle three or four loans simultaneously. When an unexpected expense arises, the delicate balance collapses. People take a new loan to pay the interest on an old one.
- Gold Loans: We pledge our gold for “emergencies,” but rarely have a plan to retrieve it.
- Consumer Goods: From mobile phones to cars, everything is bought on installments.
3. The Housing & Wedding Obsession We build houses not to live in, but to impress. A family of three often builds a massive mansion costing lakhs (or crores), spending a lifetime paying off the mortgage. A house is meant for peace and sleep; instead, it becomes the burden.
Similarly, weddings have become theatrical displays of wealth. Families take massive loans to fund a one-day luxury event. The next day, the gold is pledged to pay off the vendors. The parents—especially the bride’s family—are left struggling for decades to pay for a party that the guests have already forgotten.
The Root Cause: Financial Illiteracy
Why is this happening? Because financial management is not taught in schools.
We are never taught how to handle money, how to budget, or the difference between an asset and a liability. We spend without knowing our real income. We try to live like the rich without having the wealth to back it up.
How to Reclaim Your Life: A Financial Roadmap
If we want to stop these tragedies, we must change how we view money. Here is how we can start:
- Distinguish Needs vs. Wants: Before clicking “Order,” ask yourself: Is this useful? Do I need this, or do I just want it? Stop buying things just because they are on “Offer.”
- Invest, Don’t Just Save: Keeping money idle isn’t enough. Start a SIP (Systematic Investment Plan). Let your money grow over time.
- Build a Home, Not a Monument: Build a house that fits your budget. Remember, a bigger house means higher maintenance costs forever.
- Beware of “Easy Money”: Do not fall for get-rich-quick schemes. Deposit your money only in government-approved banks or trusted institutions.
- Don’t Buy Jobs: Do not pay massive bribes or “visa fees” to agents for jobs abroad without verifying the facts.
Conclusion
There is no shame in living within your means. The most expensive thing in life is not a car or a house—it is Peace of Mind.
We live in an era with abundant resources. Read books on financial freedom, listen to podcasts by financial experts, and educate yourself.
Please remember: When you are financially destroyed, the crowd that cheered your spending will not be there to pay your bills. Your debt is your burden. But your life is precious to your family.
Let’s break the silence on debt. Let’s choose peace over prestige.