If I have 3 salary day loans from Rupee 112 48000, bright 37000 and nbl 45000. How do Inrepay with my current salary since I dont think anyone will settle if its a payday loan. Also app based loans dont lower emi. In that case how do I convince them. My cibil is getting affected and its causing me distress.

Ans: Losing a job and facing debt can be overwhelming. It is important to act swiftly to manage your financial situation.

Assess Your Financial Situation
List All Debts:

EMI of Rs. 35,000 per month.
Loans from various apps like Paytm and MoneyView.
Prioritize Debts:

Identify which debts have the highest interest rates.
Focus on these high-interest loans first.
Create a Budget
Calculate Monthly Expenses:

List essential expenses (rent, utilities, groceries).
Identify non-essential expenses you can cut.
Allocate Funds:

Ensure you cover essential expenses first.
Allocate remaining funds towards debt repayment.
Communicate with Lenders
Contact Loan Providers:

Explain your job loss situation.
Request for a temporary reduction or deferment in EMI payments.
Negotiate Repayment Terms:

Ask for extended repayment periods.
Request for lower interest rates if possible.
Seek Professional Help
Certified Financial Planner:

Consult a Certified Financial Planner for personalized advice.
They can help you create a debt management plan.
Credit Counseling Services:

Consider reaching out to credit counseling services.
They can negotiate with creditors on your behalf.
Increase Income Sources
Look for Temporary Work:

Consider part-time or freelance work.
Explore gig economy jobs like food delivery or ride-sharing.
Sell Unnecessary Assets:

Sell items you no longer need.
Use the proceeds to pay off debts.
Emergency Measures
Emergency Fund:

If you have an emergency fund, use it to cover essential expenses.
Avoid depleting it completely, keep some funds for unforeseen emergencies.
Friends and Family:

Consider borrowing from trusted friends or family.
Ensure you create a clear repayment plan to avoid misunderstandings.
Legal and Supportive Measures
Understand Your Rights:

Familiarize yourself with the laws regarding debt collection.
Loan apps must follow legal protocols; report any harassment.
Emotional Support:

Seek support from friends, family, or support groups.
Managing stress and mental health is crucial during this time.
Final Insights
Facing job loss and debt can be daunting. Take immediate steps to manage your finances. Prioritize essential expenses and debt repayment. Communicate with lenders and seek professional help. Look for temporary income sources and consider selling unnecessary assets. Protect your mental health and seek support from loved ones. With a strategic approach, you can navigate this difficult period and regain financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: HI Jitu,

In summary, you have 15 lakhs loans at 1% per day interest (= 365% per annum). No options to borrow from any other organized sources like Bank/NBFC. So monthly Interest is 4.5 lakhs.
Monthly Income is 2 lakhs.

This is called a Debt Trap, where your income is less than your outflow (debt), so you are in a negative balance always and keep borrowing to fill the gap. No point in going into the history of the situation but I hope this has been a big life lesson for you.

Borrowing against you Pension policy can be considered but depends on the company and note that this will be at a high interest rate.
Borrowing from PF funds is only under certain situations (e.g. illness, education, marriage) and so even that is ruled out.
I assume you have already considered all/any asset you may own to repay.

The solution cannot be a very simple one. But I can recommend a couple of options which you can see if they help. You plan should simple -
1. Find a source of funds to repay your current loans
2. Stay with bare minimum requirement for next few years and repay maximum amount towards new loan
3. Do not take any new loans and stay on track for next few years, no matter what.

With a salary of 2 Lakhs, you should take a hard look at your living expenses and cut out all except the basic necessities. At least on paper come up with a number that you can discuss with prospective lenders mentioned below. Give them confidence of your ability to pay back every month with a realistic number e.g. over 1 lakh per month. Make this as high as you can make it. Make compromises everywhere possible and evaluate each expense to see what you can eliminate for the next couple of years, except food and absolutely basic needs, compromise on everything else. And ensure you make this work no matter what. You will have to be strong willed to achieve this and make it work.

Check with any close friends/family members/relatives who will trust you and provide you with some loan and provide you with time to repay. Offer to pay them interest which is higher than FD but reasonable for you and you can go as high as 20% per annum. At 20% you can pay back 55~60K per month for 3 years and payback the loan with interest.

Assuming you have a bank account for direct salary deposit, approach the bank and explain your situation truthfully to them and request an overdraft/loan and offer them to recover an agreed amount at an agreed interest rate from your account directly as soon as your salary is deposited. Again the interest rate will be high but if this works, you will be on your way to recovery. Even if they offer an interest rate of 30%~40% per annum and recover in 3 years, your EMI will be around 62K~70K per month.

Approach your employer and discuss if a loan can be provided to you at a reasonable rate of interest and recovered from your salary each month. If you have been employed with them for over a year or longer, and if they consider to extend a loan this may be the best solution you can get. You can offer to sign a contract for this (stay with employer for a period or until loan is paid up).

Is there any other source of funds you can approach with a similar proposal then do so, as long as you can get a chance to payoff your current set of loans and have a manageable EMI amount to pay back over the next few years, just take the best option and keep every desire aside and stay focused on getting back on track.

Please note that borrowing from an alternate source is not going to work if you take a loan and relax after that. You have already impacted your CIBIL score which makes lenders stay away. Now your top priority will be to find a source of funds at reasonably high interest rate between 20% to 40% resulting in an EMI of 55K to 70K for 3 years, and ensure you do not default the payments and clear this ASAP. If you can pay higher amount each month, then do that and get out of these loans as quickly as possible.

With honesty and sincerity if you continue to stay on track, you can eventually start coming back to normal life where you can plan your expenses and save and invest too. But do remember to live within your means and save as much as possible. Over time build back your CIBIL score for future requirements.

Hope this is helpful in some way.

Thanks & Regards
Janak Patel
Certified Financial Planner.

Ans: ? Understand the seriousness of your EMI burden
– Your EMI is more than Rs.70,000.
– Your take-home is Rs.84,000.
– This means more than 80% goes in repaying loans.
– This is a very high debt-to-income ratio.
– It leaves very little for your monthly needs.
– Saving and investing becomes almost impossible.
– This can affect your peace of mind and stability.

? Start with identifying the types of loans
– List all loans with EMI and balance.
– Note the interest rate and tenure for each.
– This includes personal loans, credit card dues, car loans, etc.
– Check which loan has the highest interest rate.
– This step gives full clarity on your debt structure.

? Avoid any new loans or expenses for now
– Don’t take more loans to handle current EMIs.
– That will only increase your burden.
– Avoid using credit cards for EMI or cash withdrawal.
– Stop or pause any high-cost spending.
– No gadgets, no travel, no luxury expenses.

? Build a basic household budget immediately
– Track every rupee of your monthly spending.
– Separate must-have expenses from avoidable ones.
– Rent, groceries, medicines, utilities – keep these.
– Remove online shopping, OTT, dining out, weekend trips.
– Live very simple for the next 12–18 months.

? Find options to reduce your EMI load
– Try negotiating lower interest rate with lender.
– Use balance transfer to reduce EMI.
– Banks give lower rate for good credit scores.
– Extend loan tenure to lower monthly EMI.
– This increases total interest, but gives relief now.

? Try part-prepayment of small loans
– If any loan has low balance, try prepaying it.
– Use bonus, PF loan, family support if needed.
– Start with highest interest loan.
– That will save more in long run.

? Explore debt consolidation with proper advice
– Sometimes combining loans into one can help.
– But only do this if interest rate is lower.
– You must study terms carefully.
– Don’t go for informal lenders or apps.
– Only use regulated NBFCs or banks.

? Emergency fund is missing – create it gradually
– With such tight cash flow, emergency fund is vital.
– You can’t handle job loss without it.
– Aim for Rs.25,000 to Rs.50,000 first.
– Slowly grow it to 3 months of EMI and needs.
– Park it in safe liquid instruments.

? Investment should be paused temporarily
– Right now your focus is loan reduction.
– Investments can wait for 6–12 months.
– Clear debt and build stability first.
– Later, you can invest for goals.

? Avoid insurance-linked investments
– If you hold any ULIP, endowment or money-back plans, exit now.
– These give poor returns and have high charges.
– They reduce your liquidity and flexibility.
– Shift to pure term plan for protection.
– Invest separately in mutual funds later.

? Surrender and re-invest policies if applicable
– If you have LIC or similar policy, review it.
– If it is not term insurance, check surrender value.
– Exit non-performing plans and reinvest in mutual funds.
– Mutual funds are flexible and goal-based.

? Resume investments once cash flow improves
– Start small SIPs only when your EMI is manageable.
– Use actively managed mutual funds for better returns.
– Index funds look cheap, but have limits.
– Index funds don’t beat the market.
– Active funds try to give better than average return.

? Why index funds are not suitable for your case
– Index funds follow market blindly.
– They do not adjust based on risk or time horizon.
– They may underperform during crashes.
– You need customised growth, not average returns.
– Active funds managed by experts offer more.

? Mutual fund route – regular plan with MFD and CFP
– Don’t go for direct funds on your own.
– Direct funds give no hand-holding or guidance.
– Choosing wrong fund can cause loss.
– MFD + CFP can guide based on your goals.
– They help monitor and rebalance regularly.

? Focus on income stability and skill improvement
– Parallel to loan control, work on job stability.
– Upgrade skills in your domain.
– Learn tools, certifications or soft skills.
– Job loss or salary cut can worsen your loan problem.
– Keep improving yourself every 6 months.

? Plan for goals once loans are under control
– After 1–2 years, plan for these goals:
– Emergency fund
– Child education
– Retirement
– Home down payment (only if within budget)
– Prioritise retirement even if child is small.
– Don’t depend on property or pension in future.

? Always protect your family with insurance
– Term insurance is needed if you have dependents.
– Rs.50L to Rs.1Cr cover is ideal.
– Premium is low and benefit is high.
– Also, get health insurance for entire family.
– Don’t rely on company medical policy alone.

? Don't panic or lose confidence
– Many people face such debt situations.
– It’s a phase, not the end.
– Proper budgeting and planning can solve it.
– Stay disciplined and committed.
– One year of effort can change everything.

? Create a 3-step action plan from today
– Step 1: Review all EMIs and spending.
– Step 2: Try restructuring or partial prepayment.
– Step 3: Build emergency fund and resume SIP later.

? Stay away from high-risk or quick return plans
– Avoid crypto, trading, Ponzi apps or get-rich schemes.
– You can’t solve debt through speculation.
– Safety and liquidity matter more now.

? Keep reviewing your plan every 3 months
– Sit with a Certified Financial Planner regularly.
– Share updates and revise your goals.
– Consistency in execution is more important than speed.
– Financial freedom takes time but is possible.

? Finally
– Focus now is on survival and regaining balance.
– Once done, you can restart your investment journey.
– With planning and patience, you can still build wealth.
– You already took the first step by asking.
– Take action now, even if small.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You have shown strength by sharing your financial situation. Many won’t even take this step. At 37, with 14 years of work experience, you still have time to turn this around. What matters now is the right approach. Your present EMI burden is very high compared to your income. The need of the hour is focus, action, and discipline.

» Understanding Your Debt Position

– Your salary is Rs.75,000 per month
– EMIs total Rs.47,894 across 4 banks
– These EMIs include credit card and personal loan dues
– Total outstanding is about Rs.6.36 lakh
– You are left with Rs.27,000 monthly after EMIs
– That makes cash flow extremely tight
– Your loans are unsecured, so interest rates are high
– This needs immediate attention and a repayment plan

» Reasons for Action Now

– Credit card loans charge very high interest
– Even EMI-based card loans have high APR
– Missed payments affect CIBIL score badly
– Multiple loans reduce financial peace
– You are paying interest, not clearing principal fast
– You need breathing space in cash flow
– You must move from survival to growth

» Debt Prioritisation Strategy

– Start with smallest or highest interest loan
– Clear one loan fully, then move to the next
– This method is called snowball or avalanche
– Avalanche saves interest, snowball gives faster wins

– IDFC personal loan: 1 EMI left

Pay it fully first

This frees some EMI amount

– ICICI credit card loan: 4 EMIs left

Focus on this after IDFC

It's smaller in size

Closure will give you motivation

– HDFC and SBI cards:

These are higher in value

Make minimum EMI now

Don’t miss payments

Avoid using these cards again

» What to Avoid Immediately

– Don’t take new loan to repay old ones
– No gold loans or payday loans
– Don’t use friends or relatives unless final option
– Don’t convert bills into more EMIs again
– No buying on EMI till debts are over
– Don’t use credit card until you are fully debt-free
– Cut all unnecessary expenses now

» Cash Flow Adjustment

– You have Rs.27,000 after EMIs
– You must track every rupee
– Spend only on rent, food, transport
– Eliminate eating out, subscriptions, shopping
– Use public transport to reduce cost
– Postpone all big purchases
– Take lunch from home if working in office
– Find 5-10k saving from monthly expenses

– Use this to prepay loans
– Keep Rs.5,000 monthly as buffer
– Rest use to reduce one loan step by step

» Increase Income in Any Way Possible

– Can you take freelance work or weekend job?
– Offer tuition, online work, or delivery part-time
– Sell unused items online – gadgets, clothes, books
– Ask for yearly bonus or overtime at current job
– Speak to employer for salary hike after appraisal
– Even Rs.5,000 extra monthly can help a lot
– Every rupee saved or earned should go to debt

» Loan Restructuring Option

– Approach banks for EMI restructuring
– Some banks may extend tenure
– Or offer lower interest for longer time
– This can reduce monthly EMI burden
– But total interest paid will go up
– Use only if monthly EMI is unbearable
– Don’t hide from banks – be proactive

» Use Balance Transfer Carefully

– Some banks offer lower rate on balance transfer
– They allow one-time transfer of credit card loan
– But check processing fees and charges
– Use only if you can repay quickly after transfer
– Don't extend the loan duration just to feel relief
– This method gives breathing space but not solution

» Use 1-2 EMIs if You Get Bonus or Lump Sum

– If any bonus or gift money comes, don’t spend
– Use full amount to close smallest loan
– Even Rs.10,000 helps to reduce one EMI
– Every closed EMI gives Rs.1,000 to Rs.5,000 back
– That creates monthly space for the next EMI
– Use it smartly without skipping EMI dates

» Stay Away from Credit Cards Now

– Credit cards are not money
– They are loans with worst interest
– Don’t swipe for petrol, food, or shopping
– No EMI conversion of new purchases
– You already have card loan EMIs
– New usage will worsen your credit profile
– Lock or hide your cards for now
– Use only debit card or cash

» Emotional Control is Also Financial Discipline

– Many swipe cards due to stress or habit
– Emotional spending kills repayment
– Stay calm and focused
– Don’t compare lifestyle with others
– You are building financial stability, not showing status
– Be proud of every EMI cleared
– Keep a simple lifestyle until debt is over

» Recovery Agencies and CIBIL

– If you miss EMI, banks may call often
– If abusive, file complaint with RBI or police
– Stay polite but clear with bank representatives
– Don’t avoid bank calls – it creates more issues
– Your CIBIL score drops with missed payments
– Once loans are paid, score will recover
– Pay on time to avoid collection harassment

» Emergency Fund Should Be Maintained

– Try to keep Rs.10,000 minimum in savings
– Don’t pay all income to loans without buffer
– Life may throw a surprise – job loss, illness
– Emergency fund is safety cushion
– After closing 2 loans, build this fund slowly

» What Not to Focus On Now

– Don’t invest in mutual funds now
– Don’t buy insurance policies as investment
– Don’t invest in real estate
– Your focus is loan-free life
– First get stable cash flow
– Then plan investment for wealth and retirement

» After Loans are Cleared

– Rebuild your financial habits
– Use mutual funds via SIP for goals
– Start with regular funds through MFD and CFP
– Avoid direct mutual funds – you need guidance
– Don’t touch credit card again for casual use
– Build a habit of saving before spending
– Keep emergency fund ready always

» Build Credit Score Again

– After loans are over, keep only 1 credit card
– Use it once a month, pay full amount
– Don’t carry balance
– This will build good repayment history
– Within 2 years, CIBIL score can go above 750

» Mindset for Next 3 Years

– Stay focused on debt clearance
– Keep lifestyle simple
– Track income and expenses
– Celebrate only when all loans are over
– No foreign trips, gadgets, or shopping
– Once free, then start wealth building slowly
– Your situation is temporary, not permanent

» Finally

– You are brave to face this situation
– With discipline, you can become debt-free
– Start clearing one loan now
– Focus on freeing monthly cash flow
– Don’t ignore EMIs, don’t borrow more
– Within 12-18 months, you can see big change
– Once you are stable, start investing with a CFP
– You will rebuild your future stronger than before

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment