How are educated people made “modern slaves”?

How are educated people made “modern slaves”?

📅 December 10, 2025 👁️ 95 views

Today, even the most educated people in India are falling into a financial trap called modern slavery. This slavery is not to another person...

  • but to EMIs (Equated Monthly Installments). Banks, builders, and finance companies lure people with the promise of homes, cars, and gadgets, trapping them in a lifetime of EMIs.

Learn more in this blog:

  • What is the real game behind EMIs?
  • Why 95% of people don't understand the trap they've fallen into.
  • This is a lifelong risk for those with private sector jobs.
  • How to avoid EMIs and achieve financial freedom.
  • A shift in mindset: From "needs" to "wants" -
  • The psychological game of credit limits -
  • The illusion of "reward points" -
  • The new status symbol of the middle class -
  • Credit cards instead of emergency funds -
  • The younger generation is the biggest victim -
  • Exploitation of villages/small towns

1. What is the EMI Trap? - The Truth About "Buy Now, Pay Later"

  • Banks and finance companies, understanding people's psychology, offer:
  • "Sir, a pre-approved loan."
  • "Book today, EMI only 10,000."
  • But EMI isn't just a single installment—
  • It's a 10-25 year long financial slavery.
  • When you take a house, car, or furniture on EMI, a large portion of your income is mortgaged to the bank.

2. How does the lure of property become a trap?

  • People with private jobs think that buying property is an investment.
  • But the truth is:
  • The first property isn't an investment, it's a liability.
  • EMIs don't allow you to change jobs.
  • Lost a job during recession → EMIs start.
  • Defaulted → Bank penalty + stress.
  • 95% of people don't realize that they've already invested their entire future in EMIs.

3. What's life like after taking EMIs?

  • Difficult to change jobs.
  • Can't start a business.
  • Savings don't last.
  • Stress increases.
  • A house worth 30 lakhs sold for 60-70 lakhs.
  • That means the house isn't yours—it belongs to the bank.

4. How to avoid the EMI trap?

  • ✔ 1. Avoid anything you can't afford in cash.
  • The EMI lifestyle is the real trap.
  • ✔ 2. Buy property only when you have 30–40% savings.
  • Otherwise, EMIs become a lifelong burden.
  • ✔ 3. Those with private jobs should avoid long-term EMIs.
  • Because the future of their job is uncertain.
  • ✔ 4. Learn saving discipline first.
  • Income – Savings = Expenses.
  • ✔ 5. Develop side income and skills.
  • Financial freedom comes from skills, not loans.

5. A Shift in Thinking: From "Need" to "Want" -

  • Old thinking: "Save first, then spend"
  • Credit card companies introduced a new way of thinking: "Spend first, pay later"
  • Reality: The EMI culture has transformed Indians' saving habits into debt habits.

6. The Psychological Game of Credit Limits -

  • Method: Gradually increasing the limit (₹50,000 → ₹1,00,000 → ₹2,00,000)
  • Mindset: "If there's room, I'll spend it"
  • Real-world example:
  • Salary: ₹60,000 per month
  • Credit limit: ₹3,00,000
  • Result: The person ends up spending up to ₹2.5 lakhs, which is equivalent to 4 months of their salary.

7. The Illusion of "Reward Points" -

  • Claim: "Earn points on every purchase!" Reality:
  • You have to spend ₹50,000 to earn ₹50.
  • Interest rate: 36-48% annually (if the bill is not paid)
  • Minimum payment trap: Paying only 5% of the bill results in 3% monthly interest (36% annually)

8. The New Status Symbol of the Middle Class -

  • Old Status: Savings account balance
  • New Status:
  • Premium credit card (Gold/Platinum)
  • High credit limit
  • Dinner at five-star hotels/restaurants
  • Foreign trips (booked on EMI)

9. Credit Card instead of Emergency Fund -

  • Traditional thinking: "Keep 6 months' expenses in savings"
  • Today's thinking: "We have a credit card, for emergencies"
  • Real-world consequence: Medical emergency → Credit card → Life burdened by interest

10. The Young Generation is the Biggest Victim -

Fact:
  • Credit card debt has grown fastest in the 22-30 age group
  • First credit card even before the first salary
  • Young people fall into a debt trap at the beginning of their careers due to "Buy Now, Pay Later" schemes

11. Exploitation of Villages/Small Towns

  • Strategy: Aggressive marketing in Tier-2/3 cities
  • Target: New consumers who are unaware of the credit system
  • Reality: Ordinary shopkeepers/farmers with a monthly income of ₹25,000 are given cards with a ₹1 lakh limit

Result:

  • Educated people fall into financial slavery because they are taught to earn, but not money management. The EMI system is an invisible trap—
  • that controls your freedom, dreams, and lifestyle.
  • The greatest freedom for the educated class lies in understanding that true slavery is not external but in one's internal mindset. Conscious choices, balance, and self-awareness are the path to liberation from modern slavery.
  • True freedom is not external, but internal. The true meaning of being educated is to understand the system, benefit from it, but not become its slave. Education prepares us for employment, that's true, but its fundamental purpose is to make us free thinkers, critical reasoners, and autonomous individuals.
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