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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 01, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by D on Jul 26, 2025Hindi

Money

Dear Sir, I am 37 year old, working since 14 years, earning 75000 rupees every month, from that salary I am paying 47894?-Rs as 14 EMIs in 4 banks (many are credit card loan EMIs and one personal loan) I don't have any other income sources. HDFC cc loan amounts outstanding total-190,000-6 EMIs ICICI cc loan amount outstanding totals -81455-4 EMIs IDFC personal loan outstanding amount-176531-1 EMI SBI cc loan outstanding amount total-186151-5 EMIs Sir, Kindly tell me how to pay them with 1 or 2 EMIs and direct me Thanks and Regards DG

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

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

Question by Salam - Jun 20, 2024Hindi

Money

Hi, I'm 37 years old working as central government employee with a salary of Rs.80k in hand. I have total debt of Rs.12 lac which comprises of multiple loans due to which i am finding it extremely difficult to manage it. My EMI as of now is 75k. Out of these loans 12 lac, total credit card debt amounts to 1.2 lac. Theses loans have remaining 2.5 years tenure. Trying to find banks or financial lenders to consolidate these multiple loans at one place is next to impossible as my application has been rejected again and again due to not meeting their internal policy. In order to be able to pay back the emi on time, i keep borrowing from private lenders with high interest, through friends etc. I am totally at loss now, Please guide and advise me how to manage and get over this trauma. Thanks

Ans: Understanding Your Situation
You are facing a challenging debt situation.

Managing Rs. 75k in EMIs on an Rs. 80k salary is tough.

Let's explore ways to ease your burden.

Prioritising Debt Repayment
First, focus on your credit card debt.

Credit cards have high interest rates.

Paying them off first can save money.

Creating a Budget
Track your income and expenses.

Identify areas where you can cut costs.

This can free up money for debt repayment.

Considering a Debt Management Plan
A debt management plan can help.

Certified Financial Planners can assist you.

They can negotiate with creditors for better terms.

Exploring Debt Consolidation
You mentioned difficulty with consolidation.

Still, it’s worth revisiting this option.

Look for lenders with flexible criteria.

Avoiding High-Interest Borrowing
Stop borrowing from private lenders.

High interest makes your debt worse.

Find alternative solutions.

Using Emergency Funds
If you have emergency funds, use them.

They can help reduce your debt faster.

Rebuild these funds once debt is manageable.

Selling Non-Essential Assets
Consider selling non-essential assets.

This can generate extra cash for debt repayment.

Every bit helps in reducing the burden.

Seeking Professional Help
Consult a Certified Financial Planner.

They can offer personalised advice.

Their expertise can guide you effectively.

Discussing with Creditors
Talk to your creditors directly.

Explain your situation and ask for relief.

They might offer temporary reductions or extensions.

Reviewing Your Insurance Policies
If you have LIC, ULIP, or investment-cum-insurance policies:

Consider surrendering them for liquidity.

Reinvest in mutual funds once debt is cleared.

Staying Positive and Persistent
Debt repayment is a long process.

Stay positive and persistent.

Every small step moves you closer to financial freedom.

Final Insights
Addressing your debt is crucial for financial health.

Prioritise high-interest debts like credit cards.

Create a strict budget and explore all options.

Seek professional help and consider asset sales.

With determination, you can overcome this challenge.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2024

Question by Salam - Jun 23, 2024Hindi

Money

Hi Sir, I'm 37 years old working as central government employee with a salary of Rs.80k in hand. I have total debt of Rs.12 lac which comprises of multiple loans due to which i am finding it extremely difficult to manage it. My EMI as of now is 75k. Out of these loans 12 lac, total credit card debt amounts to 1.2 lac. Theses loans have remaining 2.5 years tenure. Trying to find banks or financial lenders to consolidate these multiple loans at one place is next to impossible as my application has been rejected again and again due to not meeting their internal policy. In order to be able to pay back the emi on time, i keep borrowing from private lenders with high interest, through friends etc. I am totally at loss now, Please guide and advise me how to manage and get over this trauma. Thanks

Ans: Absolutely understand your situation. Managing debt can be overwhelming, but there are ways to handle it effectively. Let's look at practical steps to help you manage and overcome your financial challenges.

Assessing Your Financial Situation
First, let’s evaluate your current financial situation. You have a salary of Rs. 80,000 in hand. Your EMI is Rs. 75,000, which is very high. Out of Rs. 12 lakh debt, Rs. 1.2 lakh is credit card debt. The remaining loan tenure is 2.5 years. Your main issue is the high EMI which is eating up most of your income.

Prioritizing Debt Repayment
Start by prioritizing your debt. Credit card debt usually has a higher interest rate. Focus on paying off credit card debt first. Pay at least the minimum amount due on other loans to avoid penalties and then direct any extra funds towards your credit card debt.

Reducing Monthly Expenses
Evaluate your monthly expenses. Look for areas where you can cut back. Small savings add up. It’s tough but necessary. Prioritize essential expenses like rent, groceries, and utilities. Cut down on discretionary spending such as dining out, subscriptions, and entertainment.

Generating Additional Income
Consider ways to generate additional income. You might have skills or hobbies that can earn you extra money. Freelancing, part-time jobs, or selling unused items online can help. Every little bit of extra income will aid in reducing your debt faster.

Communicating with Creditors
Reach out to your creditors. Explain your financial situation. Sometimes, creditors may offer restructuring options, lower interest rates, or extended repayment periods. This can help reduce your monthly EMI burden. It’s important to communicate openly and honestly.

Avoiding High-Interest Loans
Stop borrowing from private lenders with high interest rates. This only worsens your financial situation. Avoid taking on any new debt. Focus on managing and paying off existing debt.

Seeking Professional Help
Consult a Certified Financial Planner (CFP). They can provide personalized advice and help create a realistic repayment plan. A CFP can also negotiate with creditors on your behalf, potentially securing better terms for your loans.

Exploring Debt Consolidation Alternatives
Though traditional banks have rejected your consolidation application, explore other avenues. Non-banking financial companies (NBFCs) or peer-to-peer lending platforms might be options. However, ensure they are reputable and offer favorable terms.

Utilizing Employee Benefits
As a central government employee, check if there are any benefits or loan restructuring options available. Some government schemes might offer relief or lower interest rates. Utilize any benefits available to ease your financial burden.

Building an Emergency Fund
While repaying debt is crucial, try to set aside a small emergency fund. This fund can help manage unexpected expenses without resorting to high-interest loans. Aim to save a small amount regularly, even if it’s just Rs. 500 per month.

Practicing Financial Discipline
Financial discipline is key. Stick to your budget, avoid unnecessary expenses, and focus on your debt repayment plan. It’s challenging but essential for long-term financial stability.

Maintaining a Positive Mindset
Managing debt can be stressful. It’s important to maintain a positive mindset. Celebrate small victories, such as paying off a portion of your debt. Stay motivated and focused on your long-term financial goals.

Evaluating Your Insurance Policies
If you hold LIC, ULIP, or investment-cum-insurance policies, consider their returns. Sometimes, surrendering these policies and reinvesting in mutual funds might offer better returns. Consult your CFP for personalized advice on this.

Investing in Mutual Funds
Post-debt repayment, consider investing in mutual funds for wealth creation. Actively managed funds through a CFP can offer better returns than direct funds. They provide professional management and tailored advice, aligning with your financial goals.

Final Insights
Your situation is challenging, but with a structured plan and discipline, you can overcome it. Prioritize debt repayment, reduce expenses, seek additional income, and consult a CFP. Maintain open communication with creditors and explore alternative consolidation options. Remember, small consistent efforts lead to significant results.

Taking Action
Start implementing these steps immediately. Track your progress, adjust your plan as needed, and stay committed. Financial freedom is achievable with determination and smart planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Mar 13, 2025

Asked by Anonymous - Mar 13, 2025Hindi

Money

Sir i have multiple loans and credit card bills which sums up 20 lakh and my monthly income is 30k i am not able to pay the emi anymore on time every month i am in deep stress in trying to pay the emi plz help

Ans: Your debt is high, and your income is low. Paying EMIs on time has become difficult. This situation needs an urgent plan.

You are not alone. Many people face similar financial struggles. With the right steps, you can come out of this stress.

Assess Your Debt Situation
Total loan and credit card debt: Rs 20 lakh.

Monthly income: Rs 30,000.

EMIs and credit card bills are unmanageable.

Stress is increasing due to financial burden.

The first step is to stop taking new loans or using credit cards.

Prioritise Your Debts
Credit card debt has the highest interest (30-40% per year).

Personal loans have high EMIs and penalties for delays.

Secured loans (home, car) should be managed to avoid asset loss.

Focus on clearing high-interest debts first.

Negotiate with Banks and Lenders
Contact your bank and request a loan restructuring.

Ask for a lower EMI with a longer repayment period.

Request a moratorium (temporary pause on EMI) if needed.

Convert credit card dues into an EMI loan with a lower interest rate.

Negotiate for a settlement if repayment is impossible.

Banks prefer to restructure loans rather than declare them as defaults.

Debt Consolidation Options
If you have a low-interest secured loan option (like a gold loan), consider using it to clear high-interest credit card debt.

Avoid taking another personal loan to clear old debts. It will worsen your situation.

Increase Your Income
Look for part-time or freelance work for extra income.

If possible, sell unused assets (bike, gadgets, jewelry) to reduce debt.

Discuss with family members for temporary financial help.

Cut Unnecessary Expenses
Reduce spending on non-essential items.

Stop using credit cards immediately.

Follow a strict budget and use cash or debit cards for expenses.

Seek Professional Help
A Certified Financial Planner (CFP) can help create a repayment plan.

If stress is overwhelming, consult a financial counselor or mental health professional.

Final Insights
Your situation is difficult, but a step-by-step plan will help.

Stop new loans and credit card usage immediately.

Contact banks to negotiate for lower EMIs or settlement options.

Increase income through extra work and reduce expenses.

Seek guidance from a Certified Financial Planner.

You are not alone. With the right approach, you can come out of this financial struggle.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2025

Asked by Anonymous - Jun 02, 2025Hindi

Money

Hello sir, I have multiple EMIs and I am doing business. I have 5 EMIs, 1st EMI is 16483 rs and remaining 49,000. 2 EMIs, 2nd is 16800, remaining 14,0000. 3rd EMI is 10100, remaining is 14,0000 and 4th EMI is 4500, remaining 87,000, 5th EMI is 8200, remaining amount is 170000. So total EMIs around 56,0000 principal amount remaining and my monthly income is 80k. Still I have 5,86000 to settle and suddenly I got huge loss in my business and now I am jobless and no any other option of income, so please suggest what should I do and how to come out of debt....please suggest it's a request. Am not able to find any way how to get out of this debt.

Ans: I appreciate that you reached out honestly and took responsibility. Let’s work step by step toward financial stability.

Financial Snapshot at Present

You have total EMIs around Rs.?56,000 per month.

Loan principals remaining total Rs.?5.86?lakhs.

You are currently jobless with monthly income zero.

No immediate alternative income source mentioned.

You are in business and may try restarting.

Your situation is tough. But with a clear plan, you can regain control. Let’s analyse and act.

1. Strict Expense Audit

You must begin with clarity on expenses:

List every monthly expense you have.

Include household, personal, and business costs.

Mark essentials vs non?essentials.

Cut all non?essential spending immediately.

Stop subscriptions, leisure, and luxury outflows.

Redirect savings toward EMI obligations only.

This exercise will free up funds to prioritise debt servicing.

2. Emergency Income Exploration

As you are jobless now, urgent action is essential:

Explore part?time work or freelance gigs.

Offer skills online or offline for income.

Try consulting in your earlier business domain.

Join temporary or gig roles to cover EMIs.

Consider small services like tutoring or delivery until stable.

Any income helps you stay afloat and prevents defaults.

3. Talk to Lenders Proactively

Approach banks and financiers quickly:

Explain your business loss and jobless status.

Request EMI moratorium or interim relief.

Ask for loan repayment rescheduling.

Seek interest-only EMI for some months.

Aim to reduce EMI burden to an affordable level.

Lenders may offer restructuring if approached early.

4. Debt Repayment Strategy: Ladder Method

Once you restore some income:

Prioritise smallest loan for full repayment first.

Then move EMI money to the next smallest loan.

Repeat until all small debts are cleared.

This gives psychological momentum and frees up EMI space.

Once smaller loans are cleared, reallocate funds to bigger loans.

This method keeps you motivated and reduces EMI load faster.

5. Asset Monetisation and Liquidation

Consider using existing assets for debt:

Sell non-essential jewellery or things lying idle.

Withdraw small amounts from any savings or liquid funds.

Use funds to prepay smaller EMIs.

Don’t empty deep savings; retain 1–2 months buffer.

This approach shortens debt tenure and interest burden.

6. Avoid High-Cost Borrowings

Now is not the time for risky debt:

Do not take new loans to repay old ones.

Steer clear of credit cards, personal loans at high rates.

Resist tempting small business loans or gold loans.

This prevents falling into a debt spiral.

7. Business Restructuring

If you plan to restart business:

Analyse where losses occurred.

Cut all non?essential business costs.

Focus on small, quick?turnover products.

Build low?cost, high?margin services.

Reinvest profits slowly into growth.

Keep business and personal finances separate.

Your business can support debt repayment if rebuilt wisely.

8. Emergency Fund Re?Establishment

Once you start earning again:

Set aside 1–2 months’ worth of living expenses.

Keep this in liquid form like a savings account.

This buffer prevents future defaults.

Even a small cushion keeps financial stress manageable.

9. Avoid Investment Disruption

Unless necessary, do not break investments now:

Keep long-term mutual funds or debts intact.

Cancelling SIPs may harm long-term wealth creation.

If needed, stop SIPs temporarily but don’t liquidate.

If you have direct plans like ULIPs or endowments,
consult a CFP about surrendering and reinvesting via MFD.

This protects your future financial foundation.

10. Seek Support for Credit Counseling

You don’t have to do this alone:

Look for credit counselling through non-profit agencies.

They may negotiate with lenders on your behalf.

They offer guidance on debt rehabilitation.

A CFP can help you plan and manage cash flow.

Professional assistance often leads to better outcomes.

11. Re?negotiation After Recovery

When income recovers:

Resume previous EMI schedule gradually.

Or consider prepayment to expedite loan clearance.

Check if prepaying requires penalty.

Prioritise smaller loans or higher interest loans first.

Track monthly debt outstanding and revisit budgets.

Regular reviews keep you on the payment track.

12. Rebuild and Protect Going Forward

After debt payoff, build a stronger future:

Reinstate SIPs into diversified mutual funds.

Prefer regular plans under CFP guidance for safety.

Split into equity (for growth) and debt (for stability).

Build emergency fund worth at least 6 months.

Get term and health insurance if not already present.

Track income and expenses monthly for smooth finances.

These steps ensure long-term stability and peace.

13. Long-Term Financial Discipline

To stay on strong footing:

Maintain savings habit even during recovery.

Keep debt within safe limits of future income.

Plan for retirement post-recovery.

Adjust lifestyle to match income growth.

Discipline paves the road to financial freedom.

14. Psychological and Family Support

Debt impact is more than finance:

Be transparent with family about status.

Seek their support for cost-cutting.

Don’t hide or risk relationships.

Talking may ease stress and spark ideas.

Together, you can handle hardship better.

360?Degree Action Plan Summary

Audit all expenses and cut every non?essential cost.

Look immediately for alternative income options.

Talk to lenders for EMI relief or rescheduling.

Use ladder method to repay smaller loans first.

Monetise idle assets to reduce EMI burden.

Avoid taking high-cost new debts.

Rebuild business with low cost and profit focus.

Create a small emergency buffer with regained income.

Retain long-term investments; stop SIPs if needed.

Use credit counselling or CFP guidance.

After recovery, resume EMI schedules or prepayments.

Re?start SIPs in regular mutual funds via CFP.

Secure term and health insurance.

Rebalance finances every quarter.

Stay transparent with your family to ease burdens.

Final Insights

You are facing difficult times, but you still have options and resilience.
Immediate income and lender negotiation are the first steps.
Cutting expenses sharply will save crucial money.
Small asset sales can free funds for EMIs.
Avoid more debts.
Rebuild systematically without losing hope.
Use small income to prove creditors you are serious.
A structured plan will get you out of the crisis.
After crisis, build back savings, investments, and buffers.
You can recover, grow, and succeed again.
This plan gives clarity, purpose, and a way forward.

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

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 26, 2025

Question by sree - Jun 25, 2025Hindi

Money

Hi sir. I am 34 years, having a salary of 72K take home,I have personal loans 5lakhs and hand loans from friends and relatives 15Lakhs. And I stopped to repay EMIs also due to this Pressures, I am unable to manage loan EMIs and hand loan interest everything, I don't have any savings also, How can I clear this EMIS and hand loan, please give a proper solution please help me.

Ans: You are 34 years old. Your monthly income is Rs. 72,000. You have personal loans of Rs. 5 lakh. You also owe Rs. 15 lakh to friends and relatives. Total loan is Rs. 20 lakh. You have stopped paying EMIs. There are no savings. This is a tough situation. But solutions are possible. Let’s go step by step with a full 360-degree plan.

Assess Your Current Reality
Monthly salary: Rs. 72,000

Total debt: Rs. 20 lakh

No savings

No investments

EMIs are stopped

Heavy mental stress

This is a serious phase. But the fact that you want to solve it shows strength.

Step 1: Pause and Accept
First, pause and think calmly.

Do not panic

Stop feeling guilty

Accept your current situation

Decide to fix it one step at a time

You are not alone. Many people go through such debt traps. What matters is the decision to act.

Step 2: Categorise Your Loans Clearly
You have two types of loans:

Formal loans:

Bank or NBFC personal loans

These will impact your CIBIL score

They may send legal notices

Informal loans:

Borrowed from friends and relatives

These hurt relationships

They may ask anytime

Why classify:

So that you handle them differently

Each needs a different solution

Step 3: Track Your Exact Cash Flow
Let’s check how much you can repay monthly.

Monthly income: Rs. 72,000

Monthly basic living expenses: Keep it to Rs. 25,000–30,000

Try to cut all non-essential spending

Focus only on food, rent, utilities

Possible saving:

Try to save Rs. 40,000 monthly for debt repayment

Every rupee saved must go to loan clearance

Even small expenses add up. Be strict but practical.

Step 4: Prioritise Your Loan Payments
You must decide which loan to repay first.

Repay formal loans first:

These affect credit score

These charge high interest

May lead to legal action

Talk to bank and request:

EMI pause

Loan restructuring

Reduced EMI plan

Some banks offer hardship relief

Be honest with them. Many agree to restructure if you explain.

After formal loans:

Slowly start paying informal hand loans

Be open with your friends and relatives

Tell them your action plan

Commit small but regular payments

People appreciate honesty and discipline.

Step 5: Avoid Taking Any New Loan
This is very important. Do not:

Take new loan to repay old loans

Use credit cards

Use payday apps or money lenders

Borrow from new friends

This will trap you more. You are already deep in debt.

Focus on cleaning up step by step.

Step 6: Increase Your Income
Right now, income is fixed. But if you can earn more, debt clears faster.

Try these ideas:

Weekend freelancing

Evening tuition

Online part-time work

Extra shifts if your job allows

Festival-based temporary jobs

Even Rs. 5,000–10,000 extra per month will help.

Don’t worry about job level. Focus on income. It's just for the next 2–3 years.

Step 7: Create a Debt Clearance Plan
You have Rs. 20 lakh loan. Assume you can pay Rs. 40,000 per month.

That is Rs. 4.8 lakh per year.

So you may take 4–5 years to clear full debt.

But follow this repayment order:

Start with small high-interest loans

Clear one loan fully

Then move to next

This gives motivation

It also shows progress

It’s called Debt Snowball Method.

If you get any bonus or cash gift, use it to close one loan fully.

Step 8: Avoid Emotional Spending
You may feel sad, frustrated or ashamed. That is normal.

But don’t deal with it by:

Shopping

Eating out

Parties

Showing off

Use every bit of money for one goal: debt freedom.

Talk to family. Ask for support, not money.

Step 9: Protect Your Mental Health
Debt stress is real. It can affect sleep, confidence, and peace.

Try these steps:

Wake up early

Exercise daily

Write your budget weekly

Avoid negative people

Take help if you feel depressed

You are doing the right thing now. Keep your mind stable.

Step 10: Build Emergency Fund After Clearing Debt
Once you finish loans:

Start saving Rs. 2,000/month

Slowly build Rs. 1 lakh buffer

Keep this in liquid fund

Use this only for medical or job loss

Emergency fund avoids future debt.

Step 11: Don’t Touch Risky Options
You may hear many ideas now like:

Invest in real estate for returns

Do trading or quick profits

Buy insurance plus investment plans

Use index funds or ETFs

Buy direct mutual funds

Avoid all these now. You are not ready.

Focus only on:

Clearing debt

Building savings

Protecting income

Step 12: Insurance Is Must, But Start After Debt
Right now, do not buy any plan.

But once you clear debt, buy:

Term life insurance

Health insurance (if not covered already)

Use pure term plan only. Avoid endowment or ULIP.

Buy only after income stabilises.

Step 13: Involve a Certified Financial Planner
You need guidance for next 5 years.

After clearing loans, work with:

Certified Financial Planner (CFP)

Invest through MFD with CFP support

Use regular mutual funds

They will guide your retirement, child education, insurance, tax, and investment.

Avoid direct funds. No guidance. Mistakes can cost you future wealth.

Step 14: Use a Simple Monthly Budget
Use this format every month:

Income: Rs. 72,000

Rent: Rs. ___

Food: Rs. ___

Transport: Rs. ___

EMI: Rs. ___

Loan to friend: Rs. ___

Savings: Rs. ___

Track this every Sunday. Keep it simple and honest.

Finally
You are in a very serious financial stage. But your courage to ask shows strength.

You must now:

Control all spending

Increase income side income

Pay loans one by one

Avoid new debt

Don’t invest now

Build stability first

Later invest through CFP

In 4–5 years, your life can fully change.

You’ll be debt-free. Mentally relaxed. And strong for the future.

You will thank yourself later.

Start today. Stay honest. Stay strong. Take action. Every small step matters.

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

Latest Questions

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi

Career

Hello sir, While filling the JEE registration form, I had mistakenly added Mr. and Mrs. prefixes at my parent's name respectively. Their names are without prefixes in my matriculation certificates and Aadhaar card. I have been advised to make two affidavits stating the prefix discrepancy for the JOSAA Counselling. Since the discrepancy is with two names, Is it big enough to get my admission rejected? If not, with which documents should i submit the affidavits along with so that a query is not raised during the JOSAA counselling ?

Ans: Hi
Don't worry. This won't get your application rejected.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 18, 2025Hindi

Career

Sir I passed class 12th from Maharashtra board (PCMB + English) I scored 48 in chemistry 52 in physics and 46 in biology I have a marksheet from Nios board which consists only one subject biology in which I scored 58 marks , My question is am I eligible for admission in mbbs ( govt college ) if I score good in Neet 2026 ??? Can I combine state board (PCB)marksheet + Nios ( biology marksheet) to fullfill 50% PCB aggregate score ?? I am from general Ews category please resolve my query

Ans: I recommend appearing for all 5 subjects through NIOS

Asked on - Dec 08, 2025 | Answered on Dec 08, 2025

Am I ineligible for mbbs?? Will they reject me?

Ans: Might be as you gave PCMB already from MS board. There is not concrete answer in counselling brochure.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Asked by Anonymous - Nov 14, 2025Hindi

Career

My son is preparing for JEE. He wants to pursue Mathematics in the future.Just wanted to know, which are the acclaimed universities which are good for research in the field of Maths , which he can aim for?, and can resaerch also be a career option in our country?. Thank you.

Ans: Hello
IITs are the top institutions wherein you can take Applied Maths. Apart from that Indian Statistical Institute, Chennai Mathematical Institute, IISc Bangalore, Tata Institute of Fundamental Research, IISERs are the other good options in our country.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Question by Amit - Nov 21, 2025Hindi

Career

Sir mera ek doubt hai ki maine class 12th 2024 me diya hai bihar board se aur jee mains first time appear in 2025 bit jee advanced ke liye qulify nahi kar paye to mai jee advanced 2026 ke liye ellible honge aur agar mai nios se dubara 12th de kar jee mains ke form me apperaing fill kar de to kya tab jee advanced 2026 ke liye ellible honge plese sir maine bahut logo se pucha hai lekin koi kabhi koi answer deta hai aur 1 hours baad koi aur answers mai ummeed karta hu ki aap mujhe honest answer denge

Ans: Hello Amit
Aap JEE-Advanced 2026 nahi de paoge.

Mayank Chandel |2569 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Dec 08, 2025

Question by barnalimahata - Nov 22, 2025Hindi

Career

I have state government obc from government of West Bengal, my community is also listed in central obc list so do I need to make obc issued by central government for reservation in IIT

Ans: Hi
Yes, you will need to make obc issued by the central government for reservation in IIT/NIT/IIITs

Anu Krishna |1746 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Dec 08, 2025

Question by Shubha - Dec 07, 2025Hindi

Relationship

Have read some of your answers and I am appalled as to how biased you seem. To most daughters in law you have suggested basically to shut up and best abuse for ‘family peace’ whereas when a man complains of his wife being close to her mother you go like ‘oh what a woman’. Looking at your profile one expects you would teach your clients assertiveness, self respect and fairness.

Ans: Dear Shubha,
Thank you for looking up my responses.
A while back a man accused me of being biased towards the woman and you are accusing me of being biased towards a man; there's no pleasing everyone, yeah?
Whatever you have gleaned to come to a conclusion of 'oh what a woman' and you saying that I am asking people to shut up, is something you may have to reflect upon.
A small guiding tip for you: We read and understand based on what we WANT to read and understand. Without throwing labels here, I can say that a crusader of women's rights will always start with the premise of 'everything is against women' and operate from there; you get the drift? Will help you reflect deeper!
My responses have and will always be objective and will continue to guide people to a better life.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Asked by Anonymous - Dec 08, 2025Hindi

Money

Hi i am 40M. would request your help to understand what should be the corpus required for retirement as i want to get retired in next 3-5yrs. currently my take home is 2.3L monthly & my wife also works but leaving the job in next 2-3 months. we have a daughter 10yrs, currently i stay on rent and total monthly expense is 1.1L month. once i will retire we will shift in our own parental flat, where hopefully there will be no rent. current Investments 1. 50L in REC bonds getting matured in 2029 2. 42L in stocks 3. 17L in MF 4. 16L FD 5. 15L in PPF 6. 1.3L SIP monthly i do My Wife Investments 1. 30L corpus 2. flat with current value 40L and we get rental of 10K monthly. Please guide what should be the retirement corpus required combined to retire, assuming i need 75L for my daughter post grad and marriage and we would be requiring 75K monthly for our expenses after retiring

Ans: You have explained your income, goals, current assets, and future plans with great clarity. Your early planning spirit is strong. This gives a very good base. You can reach a peaceful retirement with smart steps in the next few years.

» Your Current Position

You are 40 years old. You plan to retire in 3 to 5 years. You earn Rs 2.3 lakh per month. Your wife also works but will stop working soon. You have one daughter aged 10. Your current monthly cost is around Rs 1.1 lakh. This cost will reduce after retirement because you will shift to your parental flat.

Your investment base is already good. You have saved in bonds, stocks, mutual funds, PPF, FD, and SIP. Your wife also has her own savings and rental income from a flat. All these create a good starting point.

This early base helps you plan stronger. It also gives room for more shaping. You are on the right road.

» Your Family Goals

You need Rs 75 lakh for your daughter’s higher education and marriage.

You want Rs 75,000 per month for family living after retirement.

You want to retire in 3 to 5 years.

You will shift to your parental flat after retirement.

You will have rental income of Rs 10,000 from your wife’s flat.

These goals are clear. They give direction. They allow a strong plan.

» Your Present Investments

Your investments include:

Rs 50 lakh in REC bonds maturing in 2029.

Rs 42 lakh in stocks.

Rs 17 lakh in mutual funds.

Rs 16 lakh in fixed deposits.

Rs 15 lakh in PPF.

Rs 1.3 lakh as monthly SIP.

Your wife holds:

Rs 30 lakh corpus.

A flat worth Rs 40 lakh with rent of Rs 10,000 each month.

Your combined net worth is healthy. This gives good power to build your retirement fund in the coming years.

» Understanding Your Expense Need After Retirement

You expect Rs 75,000 per month after retirement. This includes all basic needs. You will not have rent. That reduces cost. This assumption looks fair today.

Your cost will rise with inflation. So you must plan for rising needs. A strong retirement corpus must support rising cost for 40 to 45 years because you are retiring early.

An early retirement needs a large buffer. So you need safety along with growth. Your plan must include growth assets and safety assets.

» How Much Monthly Income You Will Need Later

Rs 75,000 per month is Rs 9 lakh per year. In future years, this cost can rise. If we assume steady rise, your future cost will be much higher.

So the retirement corpus must be designed to:

Give monthly income.

Beat inflation.

Support you for 40 to 45 years.

Protect your family even in market down cycles.

Allow flexibility if your needs change.

A strong retirement fund must support both safety and long-term growth.

» How Much Corpus You Should Target

A safe target is a large and flexible corpus that can support long years without running out of money. For early retirement, the usual thumb rule suggests a very high number. This is because you need income for many decades.

You need a corpus big enough to produce rising income. You also need a cushion for unexpected health costs, lifestyle shocks, and inflation changes.

Your target retirement corpus should be in a strong range. For your needs of Rs 75,000 per month and for goals like daughter’s education and marriage, you should aim for a combined retirement readiness corpus in the higher bracket.

A safe range for your family would be a very large number crossing multiple crores. This large range gives you:

Income safety.

Inflation protection.

Peace during market cycles.

Comfort in long life.

Room for daughter’s future.

Strong backup for health.

You are already on the way due to your existing assets. You will reach close to this range with systematic building over the next 3 to 5 years.

» Why You Need This Larger Corpus

You will retire early. That means more years of living from your corpus. Your corpus must not fall early. It must grow even after retirement. It must give monthly income and long-term family protection.

This is only possible when the corpus is strong and well-structured. A weak corpus creates stress. A strong corpus creates freedom.

Also, your daughter’s future cost must be kept aside. This must be parked in a separate fund. This must not touch your retirement money.

A strong corpus makes these two worlds separate and safe.

» Your Existing Assets and Their Strength

You already have good diversification:

Bonds give safety.

Stocks give growth.

Mutual funds give managed growth.

FD gives stability.

PPF gives tax-free long-term savings.

This blend is already a good start. But you need to make the blend more structured for early retirement.

Your Rs 1.3 lakh monthly SIP is also strong. It builds your future fast. You should continue.

Your wife’s rental income is small but steady. This adds strength.

Your combined financial base can reach your retirement target if you refine your allocation now.

» Your Daughter’s Future Fund Need

You need Rs 75 lakh for your daughter’s education and marriage. You should keep this goal separate from your retirement goal.

Your current SIP and future allocations should create a dedicated fund for this goal. A long-term fund can grow well when managed actively.

Do not mix this fund with your retirement needs. Mixing leads to shortage in old age. Always keep this corpus ring-fenced.

» A Strong Asset Mix For Your Retirement Path

A balanced mix is needed. You need growth assets to beat inflation. You also need stable assets for income.

You must avoid index funds because they do not give flexibility. Index funds follow a fixed index. They cannot make active changes in different markets. They cannot move to better stocks when markets change. They force you to stay in weak sectors for long. They also do not help you in down cycles because they cannot protect you by shifting to safer options. This can hurt retirement planning.

Actively managed funds are better because:

They give active asset selection.

They give scope for better returns.

They give flexibility to change sectors.

They give downside management.

They give access to a skilled fund manager.

They support long-term planning more safely.

Direct plans also carry risk. Direct plans do not give guidance. They do not give behavioural support. They do not give market timing help. They do not give portfolio shaping. They leave all the judgement to you. One mistake can cost years of wealth.

Regular plans with guidance from a Certified Financial Planner help you shape decisions. They help you remain disciplined. They help you avoid panic. They help you decide allocation changes at the right time. This saves wealth in long-term.

» How Your Investment Journey Should Grow in the Next 3–5 Years

Continue your SIP.

Increase SIP when your income rises.

Shift part of your stock holding into planned long-term mutual funds to reduce concentration risk.

Build a defined daughter’s education fund.

Keep a part of your REC bond maturity amount for long-term.

Avoid locking too much into fixed deposits for long periods.

Build a safety fund for one year of expenses.

This will create a full structure.

» Your Rental Income Role

Your rental income of Rs 10,000 per month is small but steady. Over time it will rise. This income will support your monthly cash flow after retirement.

You can use this for utilities or health insurance premiums. This gives a cushion.

» Your Emergency Buffer

You should keep at least one year of essential cost in a safe place. This can be in a liquid account or short-term fund. This protects you in shocks.

Since you plan early retirement, a strong buffer is important. It gives peace even in low months.

» A Structured Retirement Approach

A complete retirement plan for you should include:

A clear monthly income plan after retirement.

A corpus that can grow and protect.

A rising income system that matches inflation.

A separate daughter’s future fund.

A health cover plan for your family.

A tax-efficient withdrawal plan.

A market cycle plan to protect you in tough times.

This holistic approach keeps your family strong for decades.

» What You Should Build by Retirement Year

Your aim should be to reach a strong multi-crore range in investments before retirement. You already hold a large amount. You will add more in the next 3 to 5 years through SIP, stock growth, bond maturity, and disciplined saving.

Once you reach your target range, you can start the shifting process:

Move a part to stable assets.

Keep a part in long-term growth assets.

Create a monthly income strategy.

Keep a reserve bucket.

Keep a child future bucket.

Keep a long-term growth bucket.

This structure protects you in all market conditions.

» Final Insights

Your financial journey is already strong. You have a good income. You have saved well. You have multiple asset types. You have a clear timeline. And you have clear goals. This foundation is solid.

In the next 3 to 5 years, your focus should be on growing your combined corpus to a strong multi-crore range, keeping a separate fund for your daughter, reducing risk in unplanned assets, and building a stable long-term structure.

With the present path and a disciplined structure, you can retire peacefully and support your family with confidence for many decades.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Samraat Jadhav |2499 Answers |Ask -Follow

Stock Market Expert - Answered on Dec 08, 2025

Question by Debasis - Dec 06, 2025Hindi

Money

I sold at Rs 3500000.00 lakhs

Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 08, 2025

Question by Saket - Dec 07, 2025Hindi

Money

Hello my name is saket, I monthly salary is 43k and my saving is zero. My Rent is 15 k and 10 k i send to my parents. How can i save money and investments.

Ans: 1. Your Current Monthly Numbers

Salary: Rs 43,000

Rent: Rs 15,000

Support to parents: Rs 10,000

Left with: Rs 18,000 for food, travel, bills, and savings

You have very little room, but saving is still possible if done smartly.

2. First Step: Build a Small Emergency Buffer

You must build Rs 10,000 to Rs 20,000 emergency money.
This protects you from taking loans for small issues.

How to build it:

Save Rs 3,000 to Rs 5,000 every month in a simple bank savings account

Do this for the next few months

Don’t touch it unless truly needed

3. Create a Mini Budget (Very Simple One)

Try this split from the remaining Rs 18,000:

Daily living (food + transport): Rs 10,000 – 11,000

Personal expenses (phone, internet, basics): Rs 3,000 – 4,000

Savings + investments: Rs 3,000 – 5,000

If this feels difficult, reduce food/transport costs by small adjustments.

4. Where to Invest Once You Have Emergency Money

(For minors: This is general education. For actual investing, get guidance from a trusted adult or family member.)

After you build emergency money, start small monthly investing.

You can begin with:

Rs 1,000 to Rs 2,000 SIP in a simple, diversified equity fund

Increase the SIP whenever salary increases or expenses reduce

Avoid complicated products.
Keep it simple.
Focus on consistency.

5. Easy Practical Ways to Increase Saving

These small moves help a lot:

Avoid food delivery

Use public transport as much as possible

Reduce subscriptions you don’t use

Fix a daily expense limit

Keep a separate bank account only for savings

Even Rs 200 saved daily = Rs 6,000 monthly.

6. Increase Income Slowly

Try small income boosters:

Weekend tutoring

Freelancing

Part-time projects

Selling old gadgets

Learning new skills for future salary growth

Even Rs 3,000 extra income changes your savings life.

7. Build the Habit First

The amount doesn’t matter in the beginning.
The habit matters more.

Even saving Rs 500 every month is better than zero.
Once salary grows, you will already know how to save.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Radheshyam Zanwar |6737 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 08, 2025

Question by Dipasha - Dec 07, 2025Hindi

Career

Hello sir.. Mera class 12th main PCB tha but biology mai repeat aya hain aur english, physics, chemistry mai pass hu.. If mai biology NIOS se exam dungi toh kya mai NEET ke liye eligible ho jaungi?? Please answer

Ans: Your question and follow-up question are already answered. Please copy and paste the following link in your browser to read it - https://gurus.rediff.com/question/qdtl/career/neet-aspirant-meri-class-12-m-physics-m-repeat-thi/5248200

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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