Ask Amitoj- The Loan Guru

Date: 2008-08-26 18:12:18

Query : I have 2 personal loan running of EMI 3693 & 3102. I have Credit card debts of Citibank - 51000, DB Bank - 31000, ABN Amro 10000, HDFC - 31000. I paying minimum amount for all my credit card... The interest rate is high... I want to consolidated my credit card debts into one as single one... Kindly help me... Banks are not providing loan as I already have 2 loans running... Please help me
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Date: 2008-08-27 13:49:17

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: 2008-08-27 16:25:13

Message:

Loan Information:

ABN Amro Loan: 83,000 ; EMI - 3102 ; 36 Months ; 21% ; 11 EMIs Paid

Citibank Loan: 1,28,000 ; EMI - 3693 ; 48 months; 17% ; 4 EMIs Paid

Credit Card Details:

ABN Amro - 11,000
Citibank - 51,000
Citibank - 11,000
HDFC - 31,000
DB Bank - 31,000

Net Income - 14000
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Date: 2008-08-29 14:39:16

Message:

Your monthly net take home is Rs. 14,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 13,545 (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 83000 36 20.42% 3102.368204 11 62744.92178 20255.07822
Loan 2 128000 48 17.00% 3693.445415 4 120318.2275 7681.772513

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.27,000 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. 27,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 12,195
e. Do you have any assets you can leverage / mortgage / liquidate to improve your cash flow situation ?
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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City : Chennai
Employment Status : Self Employed
Annual Income : 180000
Type of Loan Running : Yes
Loan Running : pl,
EMI Amount : 3102
Tenure : 36
ROI Loan : Yes
EMI Paid : 9 to 12 months
Credit Card Holder : Yes
Amount Due : 131000
Loan Running on Credit Card : Yes
Residential Status : Rented
Vehicle Owned : 2 Wheeler