‘Rs 12.2 lakh cleared in 2 years’: Viral post shows how to wipe out loans via debt snowball

Managing debt wisely is essential for long-term financial health. When repayments are timely and borrowing is kept in check, it supports better credit scores and reduces financial stress. But when mismanaged, debt can snowball into a cycle of interest overload and poor savings. One Redditor, however, took matters into his own hands — with impressive results.

A Reddit user recently shared how he cleared Rs 12.2 lakh in debt in just two years using the debt snowball method. His advice to others: “Start small, pay off your first Rs 5,000.”

He detailed a long list of debts — including credit cards, BNPL dues, and personal loans — from platforms like Slice, CRED, Bajaj, PayTM Postpaid, and ICICI. The breakup ranged from Rs 7,500 to over Rs 3.8 lakh, totaling Rs 12.22 lakh.

“Rs 12.2 lakh down in 2 years. How I’m using the debt snowball method to clean up my debt?” he wrote.

He followed the classic snowball approach: repay the smallest loan first, then use that freed-up EMI to tackle the next one, gaining momentum with every cleared balance. “Each time I cleared one, I snowballed that EMI into the next. I stopped using credit cards and BNPL completely. I tracked everything in a simple Google Sheet to stay motivated.”

His motivation stemmed from a tough year. “Yes, I have [missed payments]. I was laid off in 2023… in my CIBIL, it shows almost a year of late payments… This is what triggered me to start paying off the small ones immediately and start the debt snowball.”

When asked about his credit score, he replied, “Once you start repaying on time, the score improves. It jumped 40 points when I cleared all overdues and brought it to normal.”

He added that only BNPL and credit cards had minimum dues, while the rest were EMIs. Despite calls and emails from the bank, he held firm: “My loan is collateralised against 2x value in property, so I have more to lose than you guys.”

To stay on track, he cut all non-essentials. “Rent, groceries, electricity and other utilities were okay, but nothing else. Over these last two years, I filled full tank in my car only 3-4 times; otherwise, I’d just fill up 500 and try to drive more efficiently.”