Date: 2009-04-01 21:59:52
Name: ABC
Message:
City: Bangalore
Employement Status: Salaried
Date of Birth: 20-06-1976
Earning Members: 1
Dependants: 3
Net Salary: Rs. 13500
Assets
Property: Owned
Vehicle: Owned
Other Assets: Owned
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 150000
Tenure: 36
Emi: 6500
ROI: 25.25
Emi Paid:
Card Details
Payment Due Status: Full Payment
Outstanding on Card: 85000
Query: how to come out of this financial crisis
Date: 2009-04-02 01:26:13
Message:
Dear ABC
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.
Regards,
Amitoj Sethi
Date: 2009-04-02 22:40:04
Message:
Loan 1: 75000, 36months, 10%, EMI= 3086
Loan 2: 75000, 36 months, 25.25%, EMI=3500
Credit card details:
Credit Card 1: O/S Rs:80,000
credit card 2 : O/S Rs: 35,000
Date: 2009-04-02 23:36:37
Message:
Dear ABC
Could you help me with the number of EMI's paid on both the loans respectively.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
Date: 2009-04-03 23:45:21
Message:
No of EMI's paid for both loans is 14 months. Both took at same time.
My Net income is 13,500.
Date: 2009-04-06 20:47:32
Message:
Dear ABC,
Your monthly net take home is Rs. 13500 (including quarterly allowances)
Your monthly EMI commitments is Rs. 12335 (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 75000 36 27.60% 3086.084003 14 52816.62383 22183.37617
Loan 2 75000 36 37.50% 3499.656887 14 55081.67967 19918.32033
My recommendation to you is as follows
a. Opt for a top-up on loan 1 & 2. This should generate liquid cash to the extent of Rs. 42000 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. 42000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 12335
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
Date: 2009-04-07 19:13:55
Message:
Thanks a lot You have given me an amazing plan. let me try and once i get out of every debt, there will be grand party.