Want Suggestion

Date: 2009-07-20 17:50:45
Name: XYZ

Message:

City : Mumbai
Employment Status : Salaried
DOB : 03-07-1977
Earning Members : 1
Dependants : 1

Date: 2009-07-21 11:44:44

Message:

Dear XYZ
To help me prepare a personalised debt consolidation plan for you, I need the following information from your end.

Initial Loan Amt |Tenure|Rate Of Interest|EMI|No of EMI Paid
Loan 1:
Loan 2:

You will also need to list your Credit Card outstanding and Net Income.

Looking forward to your response on this.

Please revert with any clarifications on the above answer.

Date: 2009-07-21 12:20:23

Message:

Dear Sir,

I have been working for past 14 years
however, till november 2007 no savings, only spending.
Live life to the fullest was my attitude

my current financial reads as follows:

Savings
Bank bal - 40000
Gold - 40000
MF - 37000 (lock in for 3 years, 1.9 yrs over)
PF - 80000
PPF - 4000
LIC accrued bonus - 24800 (loan of 24k possible)
Dues from Co - 20000

(A) above adds upto - 245800 (appx) net worth as of today

(B) My liabilities - Personal Loan of Rs.445,000 (inclu interest) payable in next 48months appx.

(C) without interest personal loan open will be Rs.270000

Thus, networth is negative to the extent of
(a) 2lacs with interest payable (i continue paying the EMI's for next 4 years)
(b) 70000 w/o interest (if i wish to pre-pay the principal amount to whatever extent possible, by getting rid of my assets (MF i u/stand cannot be closed as 3yrs lockin period)

I am single and stay with my mother, so do contribute towards house hold expense.
As per recent conversation with my boss, my job is secured for next 2 years, without any increment.

My salary spending breakup of Rs.29500/- gross

Rs.10000/- (house exp)
Rs. 9700/- (emi)
Rs.3500/- (self exp)

expenses - 23200/-

Net savings - 6300, which includes, PF of 1750/-, bonus - 950, Birla ULIP - 1500/-, cash - 2100/-.

In the existing circumstances, what do you suggest?
a) Should i dispose off whatever assets is possible and repay my loan, or
b) continue paying my EMI and look to save Rs.6300/- every month
c) continue paying my EMI and look at options for increasing my income
d) my existing loans are from pvt banks on a higher interest rate and am looking to switch over to public banks who can do a balance transfer for me. but in existing market scenario seems doubtful.

Personally speaking, I prefer option B as it is always better for self & to tell people (during marriage alliance) that a) i have moderate savings, b) loans are common these days c) simulatenously i am also concentrating on savings.

I am aware, Its not a proud statement to make, but have realised that i lived a lavish life and need to control expense.

Awaiting to hear from you.
--
Ramanathan V Iyer
Cell No. 9820398343
Date: 2009-07-23 11:21:46

Message:

Dear XYZ

Its really good to read that you have started saving a part from your income.
The option (B) is okay according to the information that you have provided here but i would also like to suggest you to switch over these loans after some time with a lesser rate of interest.

The market condition will definitely change and then you can plan to close them or go for a cheaper rate of interest.

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.

Please revert with any clarifications on the above answer.

Date: 2009-07-23 12:07:40

Message:

Thank you Sir for your prompt response and constructive advice.

XYZ
Date: 2009-07-23 16:41:13

Message:

Dear XYZ

Your Welcome!!

Please revert with any clarifications on the above answer.

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