Debt Trap: How unpaid loans and EMIs disrupt peace of mind?

(ANI) India's growing conversation on mental well-being has a new protagonist--the monthly EMI--arriving on time, lingering past midnight, and eroding sleep, focus, and dignity for debt-burdened households, a trend the Economic Survey links to real productivity losses for the nation.

Recent government and public data underscore the scale: mental disorders affect millions with treatment gaps as high as 70-92%, and urban metros show markedly higher prevalence--conditions that financial strain can worsen through chronic stress and anxiety.

Therefore, it is important to borrow money only when you need it urgently and not for avoidable expenses such as travel.

For Ratnesh, a 34-year-old warehouse supervisor, the day's noise fades only to be replaced by a quieter, sharper sound: the mental ping of a due date, the ledger he keeps in his head, and a breath that never quite reaches the bottom of his lungs--classic signs of anxiety that make sleep shallow and fragmented.

He scrolls through reminders, promising to "sort it tomorrow," yet the loop continues: credit-card minimums, BNPL installments for a phone and a bike, and a personal loan taken during a health emergency, each small on paper, heavy in the chest at 2 am.

Studies consistently associate stress with poor sleep quality, and India's sleep surveys show large shares of adults going to bed late and waking unrefreshed--an everyday productivity and health cost of carrying worry to bed.

Economists warn that for households, stacked EMIs compress savings and push families to juggle multiple loans--conditions that heighten "financial anxiety India" and ripple into workplaces through distraction and absenteeism. The Survey's economic lens is blunt: mental ill-health translates into lost days and lower output, meaning the midnight math isn't just personal--it's macroeconomic.

Losing peace of mind

"The rising incidence of anxiety and depression in India is deeply worrying, and behind every statistic is a person losing sleep, peace of mind, and dignity. We need to recognise the unique struggles people face and ensure they get the right structured support. Only by meeting people where they are can we begin to make real progress on the larger mental health crisis." - DisketAngmo, Lead, Mann Talks

From aspirational gadgets to unavoidable medical bills, easy credit creates an illusion of affordability that can harden into a debt cycle, especially when incomes are flat and expenses rise, leaving little buffer for shocks.

“Debt has quietly become one of the biggest stressors for India's middle class. What begins as manageable credit card bills or easy BNPL EMIs often snowballs into multiple high-interest loans, sleepless nights, strained families, and declining productivity. It's time we acknowledge this as both an economic and mental health challenge,” Harish Parmar, Founder, SingleDebt.

Managing debt-related stress begins with protecting your nights. Fixing a wind-down routine, dimming screens an hour before bed, and silencing EMI notifications after a set time can help safeguard sleep. Writing down all EMIs, interest rates, and payment dates on a single page reduces rumination and provides mental clarity.

India's Economic Survey has, for the first time, placed mental health in the economic conversation, acknowledging that well-being shapes the country's growth path and the future of its workforce.

Money lessons

>> Borrow only when it is essential

>> Try to repay your loan as soon as possible. Long-term loans eat into your financial goals.

>> Avoid depending on the minimum due on your credit card. Cards charge 2-3 percent interest every month.

>> Consider borrowing against securities if you need urgent funds. This will avoid sacrificing long-term goals for short-term needs.

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