Date: 2009-04-14 14:20:29
Name: XYZ
Message:
City: Gaziabad
Employement Status: Salaried
Date of Birth: 15-01-1978
Earning Members: 1
Dependants: 1
Net Salary: Rs. 36423
Assets
Property: Rented
Vehicle: Financed
Other Assets: Owned
Loan Details
Loan Type: Personal Loan
Loan Amount: Rs. 150000
Tenure: 36
Emi: 4099
ROI: 9
Emi Paid: 16
Loan Type: Twowheeler Car Loan
Loan Amount: Rs. 250000
Tenure: 48
Emi: 5600
ROI: 12
Emi Paid: 22
Card Details
Payment Due Status: M A D
Outstanding on Card: 82000
Query: how to save money apart from all these debts
Date: 2009-04-17 02:44:15
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: 2009-04-17 18:26:49
Message:
No any except i have given 10 percent of my home booking
Date: 2009-04-22 02:34:26
Message:
Dear XYZ,
Your monthly net take home is Rs. 36423 (including quarterly allowances)
Your monthly EMI commitments is Rs. 14,470 (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 36 9.00% 4769.959899 16 88282.51175 61717.48825
Loan 2 250000 48 3.60% 5600.125365 22 139867.914 110132.086
My recommendation to you is as follows
a. Opt for a top-up on loan 2. This should generate liquid cash to the extent of Rs. 82,000 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. 82,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 10,370
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