I am not a finance expert.
I am an ordinary person sharing a real experience so that others can become alert before it is too late.
I went through a difficult phase when I urgently needed money for renovation work at home. At that time, I already had a home loan and a few personal loans running. Initially, everything looked manageable. But slowly, my income reduced while my EMIs stayed the same.
There came a stage when the total EMI amount I was paying every month became more than my monthly income. That was the danger point. Not because I had defaulted, but because I was barely holding on.
The Silent Trap of High-Interest Personal Loans
Most people don’t realise how dangerous personal loans can become over time. In my case, the personal loan interest rate was around 21%, while my home loan interest was much lower. At first, personal loans look convenient. Later, they quietly start controlling your finances. Month after month, EMIs eat into income. Small expenses begin to feel heavy. Mental stress becomes constant. This is the phase where many people suffer silently.
An Unexpected Call That Forced Me to Calculate
During this stressful period, I received a call from a bank representative about transferring my home loan and offering a top-up loan facility. Like most people, my first reaction was suspicion. Instead of rejecting it immediately, I decided to sit down and calculate everything calmly.
I checked:
- the interest rates
2. the revised EMI amount
3. whether this would actually reduce pressure or just delay the problem
The Numbers That Changed My Thinking
The comparison was clear:
Personal loans: around 21% interest Home loan top-up: around 9–9.5% interest This difference was huge. Using a lower-interest home loan top-up to close high-interest personal loans meant:
- fewer EMIs
2. lower monthly outflow
3. reduced mental stress
4. It was not about taking more loans.
It was about replacing dangerous debt with manageable debt. The Decision and the Result
I transferred my home loan and took the top-up facility. I used that amount to close most of my high-interest personal loans. The impact was immediate: the number of EMIs reduced, monthly payments became manageable, financial pressure eased
Life did not become luxurious. But stability returned. What This Experience Taught Me Loans are not evil. Blind borrowing is.
Many people believe that suffering under EMI pressure is normal. It is not. Early action, honest calculation, and restructuring can prevent serious financial damage.
Be Aware: Warning Signs You Should Not Ignore
- If you notice any of these signs, stop and reassess:
2. your EMI amount is close to or higher than your income
3. you are taking new loans to manage old EMIs
4. financial stress is affecting sleep, focus, or health
5. Ignoring these signs can quietly push anyone into a debt trap.
Final Message
Financial stress rarely arrives with noise. It grows slowly and silently. If this real-life experience helps even one person to pause, calculate, and act wisely, then sharing it is worth it.
Share to Create Awareness If you or someone you know has faced similar financial pressure, share your experience.Awareness spreads when real people speak honestly.