 Did you have to use up your savings and borrow to survive during COVID-19 pandemic? If yes, then here is the reason. Take a look at the latest information on household savings and loans by the RBI. It only reveals the tip of the iceberg of the devastating impact COVID-19 had on everyday lives and livelihoods of people. It says that household debt climbed to Rs 4.25 lakh crore in nearly nine months from March to December 2020, which means people were left to fend for themselves during the deadly wave of COVID-19. The poor had to suffer the most. They depend on the informal borrowings, which mostly rules out banks and other institutional loans from their reach. A study conducted in seven cities by Home Credit India revealed that 46% respondents borrowed money primarily to run their households. The data also revealed that the deposits in the bank crashed from Rs 3.6 lakh crores to Rs 1.7 lakh crore. This amounts to less than half in only the first peak of the pandemic in 2020. This means people withdrew nearly 2 lakh crores from the bank accounts in just three months. It is possibly the largest ever withdrawal in such a short period. Looking at both household debts and bank deposits data, it is evident that families were pushed to raise resources with little or no government support. Their needs were fulfilled either through loans or by using up savings. But a large number of people do not have access to banking and other institutional aid. They have no savings and thus rely on informal debts, of which there is no record. What we lack is a more humane policy that could have prevented such an impact. A policy that ensured most families would have been able to conserve their savings or avoid debt. These could be financial support to the poorer sections, arranging delivery of more food grains and other essential commodities through the public distribution system. Third, free medical support and compensation to affected families during COVID-19. Major trade unions, farmer organizations and left parties had raised demands to include Rs 7,500 monthly income support to families outside income tax bracket. They also demanded food grains allocation of 10 kg per person per month in addition to free medical coverage for COVID-19 patients and free vaccinations for all. But instead, the government stuck to the alternative of course, giving easier loans and exemptions to businesses and employers. And this did not help in reviving economic activity. A small sum of Rs 500 was not sufficient. However, when the second and more brutal wave hit the country, these inadequate relief measures were seen stuttering or withdrawn. And families in India might take years to recover from the economic devastation.