Ask Amitoj- The Loan Guru

Date: 2008-08-19 19:10:30

Query : hi sir,
I have totaly lost control over my finances in last 4 months as i was without job, but got a job now. I have 2 personal loan details are as follows:-
Initial Loan Amt |Tenure|Rate Of Interest|EMI|No of EMI Paid
Loan 1: 100000|36|18|16
Loan 2: 100000|48|22|11.
Credit card 1: Rs. 52000
Credit card 2: Rs. 70000
Credit card 3: Rs. 50000
Credit card 4: Rs. 60000
Credit card 5: Rs. 50000
Net Income: Rs. 240000

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Date: 2008-08-20 12:16:24

Message:

Could you also give me the EMI's for all the loans,this will help me to prepare a debt consolidation plan for you.

Please revert with any clarifications on the above answer.

Regards,

Amitoj Sethi

www.deal4loans.com

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Date: 2008-08-20 16:26:37

Message:

Hi,
Sir following are the emi for Pl and for credit card the full balance is due as informed by bank.
EMI Loan 1: 3615
EMI Loan 2: 3543.
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Date: 2008-08-20 18:01:06

Message:

hi sir, let me also inform that i am married and just got a baby boy who is 1 month old. please let me know the best debt consolidation plan as i am facing problems from recovery agents and received letter for attorney stating they will file FIR under 406/420 IPC. I have good intentions to pay the outstanding but need time let me also know how to deal with the bank respectively.
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Date: 2008-08-21 12:51:36

Message:

Your monthly net take home is Rs. 20,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 21,257 (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 18.00% 3615.239554 16 62068.74202 37931.25798
Loan 2 100000 48 29.00% 3542.67173 11 86003.36259 13996.63741

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.51,000 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. 51,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 18,707
e. In addition do you have any assets to improve your cashflow?
f. You could explain to the bank your cash position & your intention to pay. Try and regulate your payments.

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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City : Mumbai
Employment Status : Salaried
Annual Income : 250000
Type of Loan Running : Yes
Loan Running : pl,
EMI Amount : 7158
Tenure : 48
ROI Loan : Yes
EMI Paid : more than 12 months
Credit Card Holder : Yes
Amount Due : 300000
Loan Running on Credit Card : Yes
Residential Status : Rented
Vehicle Owned : Others