Date: 2008-08-05 10:02:21
Query : Hi Amitoj,
I need help in debt consolidation plan. I have 2 ongoing loans(home+personal). Please find details of the same as below.
Initial Loan Amt |Tenure |Rate Of Interest |EMI |No of EMI Paid
Loan 1(HDFC Home Loan): 34,00,000 240 months 10.25 33945 8
Loan 2(ICICI Personal Loan): 4,00,000 48 months 14 11500 8
CC outstanding(to be paid 0n Sep 2nd): 35K
Income : 10,00,000 CTC
Takehome : 66,000 PM (excluding taxes)
Can you please help me out here? Also I wanted to know if there is any bank or financial institute who provides Debt Consolidation Loan.
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Date: 2008-08-05 12:01:24
Message:
Your monthly net take home is Rs. 66,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 47,195 (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 3400000 240 10.50% 33944.91616 8 3365394.732 34605.26752
Loan 2 400000 48 16.80% 11500.6693 8 350415.6713 49584.32874
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. 35000 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. 35,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 45,495
e. Use your cards sensibly and pay the full amount due at the end of every billing cycle.
f. No bank has a product where they can take over debts or provide a consolidation loan.
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: 2008-08-05 13:57:01
Message:
Thanks Amitoj for the quick reply.
I appericiate your feedback and will definitely get in touch with you in case of any (more) queries.
Thanks and all the best.
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City : Mumbai
Employment Status : Salaried
Annual Income : 1000000
Type of Loan Running : Yes
Loan Running :
EMI Amount :
Tenure :
ROI Loan : Yes
EMI Paid :
Credit Card Holder : Yes
Amount Due :
Loan Running on Credit Card : No
Residential Status : owned
Vehicle Owned :