Date: 2008-11-17 10:17:00
Message:
City: Hyderabad
Employement Status: Salaried
Date of Birth: 27-12-1974
Earning Members: 1
Dependants: 1
Net Salary: Rs. 800000
Assets
Property: Financed
Vehicle: Owned
Other Assets: Owned
Loan Details
Loan Type: Property Loan
Loan Amount: Rs. 1200000
Tenure: 260
Emi: 13500
ROI: 13.5
Emi Paid: 24
Loan Type: Personal Loan
Loan Amount: Rs. 500000
Tenure: 48
Emi: 16500
ROI: 15
Emi Paid: 10
Loan Type: Personal Loan
Loan Amount: Rs. 300000
Tenure: 48
Emi: 9600
ROI: 14
Emi Paid: 18
Card Details
Payment Due Status: Less than M A D
Outstanding on Card: 125000
Payment Due Status: Less than M A D
Outstanding on Card: 50000
Query: I want to reduce the total payment & also make a single payment for all my loans
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Date: 2008-11-18 12:57:58
Message:
Your monthly net take home is Rs. 66,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 48,352 (assuming 5 % payment on credit card balance)
Based on the data provided, your eligibility for top-ups is as listed below
Principal Tenure Rate of Interest EMI EMIs Paid Principal Balance Top-up Available
Loan 1 1200000 260 12.61% 13501.25133 24 1175814.41 24185.59015
Loan 2 500000 48 24.72% 16500.57595 10 431918.8842 68081.11579
Loan 3 300000 48 22.91% 9600.65459 18 217730.5906 82269.40943
My recommendation to you is as follows
a. Opt for a top-up on loan 1, 2 & 3. This should generate liquid cash to the extent of Rs. 1.74 lacs without any change in your monthly outgo, but your tenure will increase.
b. If the loan provider is able to offer a top-up with an enhancement, please take up the offer. There will be an increase in the EMI in this case.
c. Use the Rs. 1.74 lacs to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 39,652
e. Use your cards sensibly and pay the full amount due at the end of every billing cycle.
You should ensure that all additional income is ploughed back to ensure that your debt is reduced. Please regulate your expenses and get into a habit of saving a portion of your salary every month. Prudence in expenses is the only trick to stay out of debt traps.
Do get back to me for any clarifications on your personalised debt consolidation plan.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi