Date: 2009-04-27 11:09:37
Name: QQQ
Message:
City: Bangalore
Employement Status: Salaried
Date of Birth: 16-01-1981
Earning Members: 3
Dependants: 2
Net Salary: Rs. 26000
Assets
Property: Owned
Vehicle: Owned
Other Assets: Owned
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 150000
Tenure: 48
Emi: 4024
ROI: 13
Emi Paid: 31
Card Details
Payment Due Status: M A D
Outstanding on Card: 16000
Query: Hi, I have EMI's for aprox Rs 8200 each month plus credit card payment of Rs 14000 each month. The balance on my credit card is about Rs 120000. My credit history is in perfect condition as I have not defaulted in any of my payments. However recently when I tried for a loan so that I could pay off my credit card balance and another loan, the bank declined my loan application. Reason being over leverage. I did try to explain to them that by taking this loan my overall payments will be reduced as I was going to close out the credit card & a loan, but they did not heed my words. I badly need a consolidation loan. Please help!
Date: 2009-04-27 11:32:27
Message:
Dear QQQ
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
Insurance- www.BimaDeals.in
Loan Gurus tips- www.AskAmitoj.com
Date: 2009-04-27 11:44:20
Message:
Amitoj, thank you for replying. I am literally into a debt trap. The specific details are below.
My loans 1) amt 150000, 48 emi of Rs 4024 @ 13%, repaid 31 emi, amt outstanding Rs60000 2) amt 97000, 36 emi of Rs 4168 @ 16.5%, repaid 6 emi, 3) amt Rs 150000, 48 emi of Rs 4885 @ 16.5%, repaid 21 emi, amt outstanding 100000 4) credit card bal rs 170000 min everymonth Rs 9000. My Net income is Rs 26000 monthly.
Date: 2009-04-28 12:50:12
Message:
Dear QQQ,
Your monthly net take home is Rs. 26,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 21,577 (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 150000 48 13.00% 4024.124384 31 62174.05958 87825.94042
Loan 2 97000 36 30.94% 4167.902662 6 86331.20726 10668.79274
Loan 3 150000 48 23.94% 4885.301145 21 101222.9544 48777.04562
My recommendation to you is as follows
a. Opt for a top-up on loan 1 ,2 & 3. This should generate liquid cash to the extent of Rs. 1.47 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. 1.47 lacs to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 14,227
e. 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
Insurance- www.BimaDeals.in
Loan Gurus tips- www.AskAmitoj.com