Date: 2009-04-13 21:36:06
Name:
Message:
City: Delhi
Employement Status: Salaried
Date of Birth: 25-02-1983
Earning Members: 1
Dependants: 1
Net Salary: Rs. 24500
Assets
Property: Rented
Vehicle: Owned
Other Assets: Owned
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 94000
Tenure: 36
Emi: 3542
ROI: 22
Emi Paid: 24
Loan Type: Personal Loan
Loan Amount: Rs. 45000
Tenure: 24
Emi: 2313
ROI: 22
Emi Paid: 20
Loan Type: Property Loan
Loan Amount: Rs.
Tenure:
Emi:
ROI:
Emi Paid:
Card Details
Payment Due Status: M A D
Outstanding on Card: 50000
Payment Due Status: M A D
Outstanding on Card: 55000
Payment Due Status: M A D
Outstanding on Card: 45000
Payment Due Status: M A D
Outstanding on Card: 44000
Payment Due Status: M A D
Outstanding on Card: 20000
Query: I want to clear off all my Credit Card balances as because of them I am experiencing shortfall in my monthly budget every month. Is there a way to get out of it. I am not worried about my loans as they are getting reduced as I am paying the EMIs but in case of Credit Cards the outstanding is not reducing and that is what is causing me headaches now.
Date: 2009-04-13 21:44:34
Message:
Dear Customer,
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: 2009-04-14 19:29:35
Message:
Sorry, I do not have any assets to improve my cash flow as of now. I do have a policy with LIC but that has a three year lock in period and only 2 years have expired on that.
Date: 2009-04-22 01:55:50
Message:
Dear Customer,
Your monthly net take home is Rs. 24,500 (including quarterly allowances)
Your monthly EMI commitments is Rs. 16,554 (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 94000 36 21.01% 3541.93898 24 38036.8691 55963.1309
Loan 2 45000 24 21.01% 2312.575329 20 8859.163384 36140.83662
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. 92,000 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. 92,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 11,954
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