Sir i am in 12 lakh rupees debt.I am student .I have no earning sources and no savings also.Im my family there is my mother only.please guide sir.please help sir.
Ans: I appreciate your courage to seek help during these challenging times. As a Certified Financial Planner, I'll provide you with a 360-degree plan to help you overcome your debt. Let's work step-by-step to ease your burden.
Understanding Your Financial Situation
Your current debt of Rs 12 lakh is a significant challenge. However, with the right approach, it is possible to clear it.
Since you are a student with no current earnings, we will need to take a strategic approach to manage and eventually eliminate your debt.
It's crucial to remain calm, take control, and focus on practical solutions. We will also look at how to reduce financial stress on your mother.
Immediate Steps to Reduce Debt Pressure
Prioritise Your Expenses: Identify necessary expenses and cut down on any non-essential spending. Every rupee saved can be directed toward reducing your debt.
Speak to Your Creditors: If you have taken loans from banks or other institutions, consider reaching out to them. Many lenders offer restructuring options for those who are genuinely struggling.
Explore Moratorium Options: Some banks may provide a temporary pause on repayments. If this is available, it can provide short-term relief.
Avoid Taking More Loans: It may seem tempting to take another loan to pay off existing debt, but this can worsen your financial situation.
Seek Family or Community Support: If possible, reach out to extended family members or friends who may be able to support you, even if it's a small amount. This can help reduce the burden temporarily.
Exploring Income Opportunities
Since you are currently a student, let’s explore ways you can earn without impacting your studies.
Freelancing: Look for online freelance work in areas like content writing, graphic design, tutoring, or data entry. These are often flexible and can provide some income.
Part-Time Jobs: Explore part-time jobs in your area, such as teaching, retail work, or any other skill you possess.
Online Teaching: If you have expertise in certain subjects, platforms like Chegg or Byju’s offer tutoring jobs. This can be a good source of income.
Use Your Hobbies: If you have any hobbies like photography, painting, or crafting, consider selling your creations online. Websites like Etsy or social media platforms can help you reach buyers.
These small income streams may not solve your debt immediately, but they can ease some of your financial pressures.
Financial Relief Programs and Scholarships
Government Schemes: Check if there are any government relief schemes available for students or families with financial hardships. These could offer temporary support.
Scholarships and Grants: Since you are a student, explore scholarships, grants, or financial aid programs that may be available. This can help reduce your educational expenses.
NGO Support: Certain non-profit organisations provide assistance to families in debt. Reach out to them for any support.
Protecting Your Mother's Finances
It is essential to protect your mother from taking on more financial burdens. If your family has any LIC policies, ULIPs, or other investment-cum-insurance plans, it might be worth exploring if surrendering these can provide some cash flow.
However, consult with a Certified Financial Planner before surrendering any insurance policies. This will help you understand the financial impact and ensure you do not lose coverage unnecessarily.
Building a Long-Term Strategy
Focus on Education and Skill Development: Your education is your best asset right now. Concentrate on completing your studies and developing skills that can lead to higher-paying job opportunities in the future.
Create a Debt Repayment Plan: Once you have a steady income, create a structured plan to repay your debt. Focus on high-interest debts first.
Emergency Fund: Once you are earning, start building a small emergency fund to handle unforeseen expenses. This will prevent future debt.
Investing for Future: As you stabilise your finances, consider investing through mutual funds to build wealth. But for now, focus on reducing debt.
Some Final Insights
Overcoming debt will take time, effort, and persistence. The journey will not be easy, but it is definitely possible.
Focus on income generation, reducing expenses, and gradually paying off your debt. With determination, you can come out of this difficult phase.
Do not hesitate to reach out for help whenever needed. Financial struggles are tough, but seeking support from community, friends, or professionals can ease the burden.
Remember, every small step you take will contribute to improving your financial health. Stay strong and keep moving forward.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment