I am 28 years old unmarried. Im in a very bad position as of now. I have 10L debt and i dont have a job. Everymonth i have to pay around 50k so that i am taking credit from other sources and paying the immediate debts. but my debt has been increased exponentially i dont have any other source to take loans, borrow etc. I am stuck now what to do? Please help me out of this. And i dont have any good skills to get a high paying job.

Ans: I understand that you are in a tough situation right now, and it can feel overwhelming. Let’s work through a plan step-by-step to help you manage your debt and improve your financial situation.

Assessing Your Current Financial Situation
Total Debt
Debt: Rs. 10 lakhs
Monthly Payment: Rs. 50,000
Immediate Actions
1. Stop Taking More Loans
Taking more loans to pay off existing ones will only increase your debt. It’s crucial to stop this cycle immediately.

2. Prioritize Essential Expenses
Identify your essential expenses. Focus on food, shelter, and basic utilities. Everything else should be secondary.

Debt Management Plan
3. Contact Your Creditors
Reach out to your creditors. Explain your situation honestly. Request a lower monthly payment or an extension on the repayment period. Many creditors are willing to negotiate.

4. Consolidate Your Debt
If possible, consolidate your debt into a single loan with a lower interest rate. This can make managing your debt easier and reduce your monthly payment.

Finding Income Sources
5. Temporary or Part-Time Jobs
Look for temporary or part-time jobs. These might not be high-paying, but every bit helps. Consider gig economy jobs like delivery services, freelancing, or part-time retail work.

6. Upskill
Invest in learning new skills. Many online platforms offer free or low-cost courses. Focus on skills that are in high demand, like digital marketing, coding, or data analysis. This can improve your chances of getting a better job.

Budgeting and Saving
7. Create a Budget
Create a strict budget. Track every rupee you spend. Cut down on non-essential expenses. This will help you manage your money better.

8. Emergency Fund
Once you start earning, build an emergency fund. This fund should cover 3-6 months of your essential expenses. It will provide a safety net in case of unexpected financial emergencies.

Emotional and Mental Health
9. Seek Support
Talk to friends, family, or a professional counselor. Sharing your problems can reduce stress and provide new perspectives.

Long-Term Financial Planning
10. Set Financial Goals
Set clear, achievable financial goals. This will give you a sense of direction and motivation. Start with small goals, like saving a certain amount each month.

Practical Steps to Find a Job
11. Networking
Network with people in your field. Attend job fairs, join professional groups, and use social media to connect with potential employers.

12. Tailored Resume and Cover Letter
Tailor your resume and cover letter for each job application. Highlight your strengths and any relevant experience. Even if your experience is limited, focus on your willingness to learn and adapt.

Exploring Government Schemes and Non-Profit Organizations
13. Government Schemes
Look into government schemes for unemployed individuals. There might be programs offering financial aid, training, or job placement services.

14. Non-Profit Organizations
Reach out to non-profit organizations. Many offer financial counseling, job training, and placement services for free.

Utilizing Free Resources
15. Online Learning Platforms
Use free resources like Coursera, edX, and Khan Academy. These platforms offer a wide range of courses that can help you learn new skills and improve your employability.

Summary and Action Plan
Stop Taking More Loans: Avoid increasing your debt further.

Prioritize Essential Expenses: Focus on basic needs.

Contact Creditors: Negotiate for lower payments.

Consolidate Debt: Simplify and reduce your debt.

Find Temporary Jobs: Look for any available work.

Upskill: Learn new, marketable skills online.

Create a Budget: Manage your money carefully.

Build an Emergency Fund: Save for unexpected expenses.

Seek Support: Talk to loved ones or a counselor.

Set Financial Goals: Plan for the future.

Network for Jobs: Connect with potential employers.

Tailored Applications: Customize your job applications.

Explore Government Schemes: Look for aid programs.

Utilize Non-Profits: Seek help from organizations.

Use Free Resources: Learn and improve skills online.

Starting from a challenging position requires determination and patience. By taking these steps, you can gradually improve your financial situation and build a stable future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in