Date: 2009-03-13 20:56:50
Name: XYZ
Message:
City: Chennai
Employement Status: Salaried
Date of Birth: 23-02-1985
Phone: 9884675586
Earning Members: 1
Dependants: 3
Net Salary: Rs. 29000
Assets
Property: Do not own
Vehicle: Do not own
Other Assets: Do not own
Loan Details
Loan Type: Property Loan
Loan Amount: Rs. 75000
Tenure: 36
Emi: 2675
ROI: 18
Emi Paid: 48150
Card Details
Payment Due Status: Less than M A D
Outstanding on Card: 85000
Query: I have nearly 1,20,000 of debt in credit card bills. I'm just paying Minimum due amount every month. I want to get rid of these paying monthly, Please advice me on debt consolidation plan.
Date: 2009-03-14 06:54:07
Message:
Sorry my loan type is personal loan and not property loan.
Date: 2009-03-14 18:31:42
Message:
Dear XYZ
Can you confirm the number of EMI's paid on your loan.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
Date: 2009-03-14 19:03:33
Message:
Sir,
I have paid 19 months EMI so far... each of worth 2675/- Tenure of the loan is 36 months.
Date: 2009-03-23 14:41:35
Message:
Dear XYZ,
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: 2009-03-23 18:03:32
Message:
No sir i dont own any assets.
Date: 2009-03-26 23:24:40
Message:
Dear XYZ,
Your monthly net take home is Rs. 29000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 6923 (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 75000 36 17.00% 2673.954565 19 40146.69153 34853.30847
My recommendation to you is as follows
a. Opt for a top-up on loan 1. This should generate liquid cash to the extent of Rs. 34,000 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. 34,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 5223
e. You should apply for an additional personal loan of Rs. 51,000 to pay off the balance portion of your card debt.
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