Date: 2009-04-10 14:46:45
Name: TTT
Message:
City: Delhi
Employement Status: Salaried
Date of Birth: 20-01-1980
Earning Members: 1
Dependants: 2
Net Salary: Rs. 20295
Assets
Property: Do not own
Vehicle: Owned
Other Assets: Do not own
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 100000
Tenure: 36
Emi: 3124
ROI: 18
Emi Paid: 12
Card Details
Payment Due Status: M A D
Outstanding on Card: 150000
Query: Hi, Please suggest how I can pay my debt which is taken from Credit Card and the total sum from various Credit Card Payment is due is 1.5Lakh. I am very upset and feeling insecured. Pls. suggest the appropriate option which can take out me from this situation.
Date: 2009-04-17 02:53:38
Message:
Dear TTT,
Do you have any assets you can leverage / mortgage / liquidate to improve your cash flow situation ?
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
Date: 2009-04-17 18:27:27
Message:
No Not I Have except My Motor Bike.
Date: 2009-04-18 18:16:36
Message:
Dear TTT,
Your monthly net take home is Rs. 20,295 (including quarterly allowances)
Your monthly EMI commitments is Rs. 10,624 (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 36 7.80% 3124.418351 12 69222.11471 30777.88529
My recommendation to you is as follows
a. Opt for a top-up on loan 1. This should generate liquid cash to the extent of Rs. 30000 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. 30000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 9124
e. You should apply for an additional personal loan of Rs. 1.20 lacs to pay off the balance portion of your card debt.
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