Date: 2008-08-04 20:25:20

Query : HI ! AMITOJ , I was working with Crompton Greaves and I have a total working experience of 14 years. Till 2006, I had an impeccable record with all banks and was enjoying all facilities.On my child hood friends' guidance, I joined a Network Marketing Business and he made me invest heavily and I lost all my savings,credibility with banks, and was literally on the street. However, I was repaying my existing loans with great difficulty,albeit some cheque returns. I now have loans to the tune of 2 lacs and credit card dues to the tune of 1.5 lacs. I request you to please help me find a solution , to consolidate and suggest me the best possible way.
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Date: 2008-08-05 10:57:42

Message:

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

www.deal4loans.com
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Date: 2008-08-05 22:29:04

Message:

Dear Amitoj,

I am herewith giving you the entire details of my loans:

1.Loan against my property : 1,00,000 -- Bank -IOB

Monthly emi - 2585
Tenure - 48 months
Start Date - 01/01/07
No. of Emis' Completed - 20
Loan Outstanding- 66000
Track - clean without any returns

2. Citi Financial : Personal Loan -- 48000

Monthly emi - 2203
Tenure - 42 months
Start date - 05/04/06
No.of Emis' Completed - 29
Loab Outstanding -- 23000
Track -- Had 3 ECS returns in 2007 , which was cleared in the same months.

3. HDFC Bank : Personal Loan - 126900

Monthly Emi - 4399
Tenure - 36 months
Start Date - 07/11/06
No.of EMIs COmpleted - 22
Loan Outstanding -- 60000
Track - Had around 6-7 ecs returns, in 2007, but all cleared. in fact paid the penalty charges also .

4. ICICI Bank : Personal Loan - 90000

Monthly EMi - 2787
Start Date : 07/02/03
Tenure : 48 months
No.of Emis Completed -- 43
Loan Tenure over but they have charged me around 32000 including the last 5 emis apart from marking a lien of 6100 in my SB account.I have written to them.

CREDIT CARDS

ICICI CARD - 34000
ABN AMRO - 24000
HDFC CARD - 24000
GE CASH CARD- 62000
SBI RLY CARD - 9000

I want to consolidate all my loans .

My NET TAKE HOME : 25000.00 + 5500.00(RENTAL INCOME)
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Date: 2008-08-06 15:51:54

Message:

Your monthly net take home is Rs. 30,500 (including quarterly allowances)
Your monthly EMI commitments is Rs. 19,623 (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 100000 48 11.00% 2584.552261 20 63571.20663 36428.79337
Loan 2 48000 42 42.17% 2203.318827 29 22679.9727 25320.0273
Loan 3 126900 36 15.00% 4399.030187 22 56178.04705 70721.95295
Loan 4 90000 48 21.00% 2786.912547 43 13231.85688 76768.14312

My recommendation to you is as follows

a. Opt for a top-up on loan 1,3 & 4. This should generate liquid cash to the extent of Rs. 1.83 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. 1.53 lacs to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 11,973
e. The balance amount 30,917 use it to pay off loan 2 as the interest here is 42.17% & outstanding is 22,679.
f. 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

www.deal4loans.com
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Date: 2008-08-06 19:44:55

Message:

Dear Amitoj,

Thanx very much for your reply. It was a great piece of advice. Further, I shall work it out accordingly.

I shall get back to you in case of any clarifications.
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City : Bangalore
Employment Status : Salaried
Annual Income : 300000
Type of Loan Running : Yes
Loan Running : pl, lap,
EMI Amount : 9187
Tenure : 20
ROI Loan : Yes
EMI Paid : more than 12 months
Credit Card Holder : Yes
Amount Due : 145000
Loan Running on Credit Card : No
Residential Status : Company Provided
Vehicle Owned : 2 Wheeler