Date: 2009-02-28 18:34:00
Name: XYZ
Message:
City: Noida
Employement Status: Salaried
Date of Birth: 21-10-1975
Earning Members: 1
Dependants: 2
Net Salary: Rs. 35000
Assets
Property: Do not own
Vehicle: Owned
Other Assets: Owned
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 380000
Tenure: 36
Emi: 10967
ROI: 17%
Emi Paid: 54835
Loan Type: Other Loans
Loan Amount: Rs. 250000
Tenure: 120
Emi: 2600
ROI: 2.5%
Emi Paid: 14000
Card Details
Payment Due Status: More than M A D
Outstanding on Card: 66000
Payment Due Status: M A D
Outstanding on Card: 55000
Payment Due Status: M A D
Outstanding on Card: 89000
Query: kindly advise on how to consolidate and manage so as to save on interest/penal interest and keep the credit rating intact.
regds
Date: 2009-03-02 16:15:39
Message:
Dear XYZ
Can you please confirm the number of emi's paid on every loan respectively for me to prepare a debt consolidation plan.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
Date: 2009-03-02 19:22:11
Message:
EMI's paid against loan of 380000 is six and that for staff loan of 250000 is fourteen.against the mentioned credit cards i pay the minimum amount every month.
regds
XYZ
Date: 2009-03-05 12:22:56
Message:
Dear XYZ,
Your monthly net take home is Rs. 35,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 24,067 (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 380000 36 2.50% 10967.32275 6 318627.1895 61372.81045
Loan 2 250000 120 4.58% 2600.611913 14 226369.1063 23630.89371
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. 85,000 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. 85,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 19,817
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