“I Was Drowning in Debt Until ChatGPT Helped Me Create a Budget Plan”
“I Was Drowning in Debt Until ChatGPT Helped Me Create a Budget Plan”
Six months ago, I was in a financial mess. I had over ₹1.5 lakh in credit card bills, missed EMI payments on my personal loan, and barely enough cash left to cover monthly rent or groceries. Every notification from my bank felt like a punch to the gut.
I was overwhelmed, embarrassed, and honestly, didn’t know where to begin.
But then I did something unusual—I opened ChatGPT and typed:
“I’m drowning in debt. Can you help me create a plan?”
I didn’t expect much. But what followed changed my life.
🧩 The Problem: My Finances Were in Chaos
Like many working Indians in metro cities, I lived paycheck to paycheck. I had:
- ₹60,000 in credit card debt across 2 cards
- ₹90,000 personal loan balance
- ₹35,000 monthly salary, inconsistent due to freelance delays
- ₹18,000 in fixed expenses (rent, groceries, travel)
- No savings. Not even ₹500 in my account at one point.
Worse? I didn’t even know how much I owed until I wrote it all down.
🤖 Step 1: Asking ChatGPT for Help
I typed into ChatGPT:
“I have ₹1.5 lakh debt. My monthly income is ₹35,000. I have two credit cards and one personal loan. I want to become debt-free in 6 months. Create a realistic budget and repayment strategy.”
ChatGPT responded with:
- Full breakdown template for income and expenses
- Snowball vs Avalanche method for debt repayment
- Prioritization logic: Pay smallest debts first or highest-interest ones
- Side-income ideas tailored to my skills
- Motivation: “Stick to the plan and review every 10 days.”
🧾 Step 2: Creating a Budget Spreadsheet (with ChatGPT’s Help)
It helped me create a clear budget with 3 major sections:
➤ Fixed Expenses (₹18,000/month)
- Rent: ₹8,000
- Groceries: ₹4,000
- Utilities & Internet: ₹2,000
- Transport & Phone: ₹2,000
- Emergency/Medical: ₹2,000
➤ Minimum Debt Payments (₹8,000/month)
- Credit Card 1: ₹3,000
- Credit Card 2: ₹2,000
- Loan EMI: ₹3,000
➤ Remaining Income: ₹9,000/month
This amount was used aggressively for extra repayments based on the snowball method (paying off smaller debts first for motivation).
🪙 Step 3: AI-Powered Side Hustle Planning
I asked ChatGPT:
“How can I earn ₹10,000/month online with no investment and just 2 hours/day?”
It gave me:
- Freelancing platforms to join (Fiverr, Upwork)
- How to write a great gig using AI
- How to use Canva + ChatGPT to offer resume writing & basic design
- YouTube channels and short-form content ideas I could try
Within 3 weeks, I got 2 paid clients for content writing, earning ₹4,000.
📈 Step 4: Tracking Progress & Staying Motivated
Every 2 weeks, I asked ChatGPT:
“Update my progress. Should I change the strategy?”
It would reassess and suggest:
- “Cut an extra ₹500 from expenses and add it to repayments”
- “Increase EMI by ₹1,000 this month due to freelance income boost”
- “Don’t stop your emergency fund – even ₹500/month matters”
This AI accountability helped me stay on track.
✅ The Result: ₹1.5 Lakh Debt — Cleared in 6 Months
Month-by-month, here’s how I tackled it:
- Month 1-2: Cleared Credit Card 2 (₹20,000)
- Month 3-4: Cleared Credit Card 1 (₹40,000)
- Month 5-6: Paid off remaining Loan (₹90,000) with help from freelance + Diwali bonus
By end of the 6th month, I was debt-free.
💡 What I Learned
- You don’t need to hire a CA to manage personal finance anymore.
- AI like ChatGPT can help ordinary Indians build extraordinary discipline.
- Budgeting isn’t about being strict—it’s about being smart.
- The biggest myth? “I don’t earn enough to save” — wrong. You need a plan.
🙏 Final Words
Today, I use ChatGPT monthly to:
- Plan savings
- Invest in SIPs
- Explore part-time income options
If you’re struggling financially, don’t wait for a miracle.
Type your problem. Ask AI. Take action.
Because your debt won’t fix itself—but you can, with a little help.
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