Easy EMIs, Costly Dreams Push Gen Z Towards Debt Trap

Easy EMIs, Costly Dreams Push Gen Z Towards Debt Trap

Easy EMIs, peer pressure and rising consumerism are pushing some Gen Z youth in Bhopal towards financial stress and debt. Psychiatrists say instant gratification and parents fulfilling unaffordable demands can worsen the problem. High-end smartphones, gadgets and vehicles bought on credit may eventually become a burden when repayments exceed income.

Staff ReporterUpdated: Saturday, August 22, 2026, 09:16 PM IST
Easy EMIs, Costly Dreams Push Gen Z Towards Debt Trap
Easy EMIs, Costly Dreams Push Gen Z Towards Debt Trap | FP photo

Bhopal (Madhya Pradesh): The tragic incident reported from Sambhajinagar in Maharashtra on Friday, in which a teen and his parents lost their lives over the issue of payment of EMI for an iPhone, may have caused shockwaves, but the city is no stranger to similar incidents.

This year in February, a 14-year-old Class 8 student in Shriram Colony died by suicide after his family took away his mobile phone to curb his addiction to online games.

In December 2025, a 17-year-old boy attempted suicide by consuming poison after his mother told him that the family did not have the money to get the broken screen of his mobile phone repaired.

Before that, in 2023, a 19-year-old youth was found dead at his house in the Misrod area. Police investigations revealed that he had bought a motorbike on instalments but could not pay the EMIs in time, driving him to take his own life.

Psychiatrists said uncontrolled consumerism, peer pressure and easy availability of gadgets and white goods on EMIs are responsible for this situation.

Many members of Gen Z want instant gratification and unfulfilled desires drive them to desperation. “On an average, every month I get 8-10 cases involving teenagers and young men and women contemplating self-harm over petty issues,” said senior psychiatrist Dr Satyakant Trivedi.

“Consumerism is at its peak. What you carry, what you wear, what you have, is what determines your status. It is no longer enough to own a smartphone. It has to be an expensive one and better still an iPhone,” he added.

Parents are increasingly fulfilling every demand of their children, even if it is beyond their means.

Some even feel guilty if they are not able to fulfil the desires of their children. And that makes the children think that getting whatever they wish is their right.

Buying high-end phones or other gadgets on borrowed money is common among Gen Z. Young buyers can today walk into any store, provide basic documents and walk away with a gadget that may cost more than their monthly income.

No collateral, no guarantors, no income proof is needed. But the money has to be repaid and the interest rates are quite high. That may lead one into a debt trap, advocating income filters on EMI sales, Dr Trivedi added.