What used to be called middle-class aspiration is now being driven by something far more dangerous—debt. According to CA Ayussh Sanghi, the Indian middle class isn’t spending to upgrade their lives. They’re borrowing just to appear like they’ve made it.
In a hard-hitting LinkedIn post, Sanghi warns that BNPL dinners, EMI iPhones, and credit-fueled wardrobes are no longer aspirational—they're a cry for help. “Instagram, influencer culture, instant delivery apps, they’re selling dreams we can’t afford”, he writes. “This isn’t lifestyle. It’s survival—on credit.”
Desperation Disguised as Lifestyle
The culture of saving—once a middle-class virtue—has taken a backseat. As Sanghi puts it, “We are not just buying more; we're buying more to be seen. ” The numbers agree.
Credit card defaults jumped 28.42% in 2024 alone. Non-performing assets (NPAs) in credit cards hit ₹6,742 crore—up ₹1,500 crore from the previous year and over 500% up from 2020.
A Debt Trap in the Making
Between 2020 and 2024, credit card loans more than doubled, rising from ₹1.4 lakh crore to ₹2.92 lakh crore. Credit card transactions skyrocketed from ₹6.3 lakh crore in FY21 to ₹18.31 lakh crore in FY24.
Most of this credit is unsecured. Miss a payment, and you're staring at interest rates between 42% and 46% annually.
Even the RBI is Worried
In November 2023, the RBI hiked the risk weight on unsecured retail loans by 25%. Even as banks bring down NPAs in other areas, personal loans and credit cards remain stubbornly risky.
CA Sanghi’s post acts as a wake-up call—one that many middle-class Indians might ignore, until it’s too late.
