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Ramalingam Kalirajan |10874 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 02, 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 Vigneshkumar on Dec 02, 2025Hindi

Money

Hi sir, My age is 32 I felt in debt trap. I got loans from loan apps and the outstanding is 700000 and personal loans 350000 and auto loans 1200000, credit cards 300000. Total around 25 laks and my salary is 50000 monthly I am paying emi of around 1,20,000. Till now I anyhow arranged the money and paid. Here after I don't want to take any new loans and how can I come over this situation. I tried my self with the lenders for emi restructuring. But they got rejected. Can I move over settlement or not. If yes can I try myself or by lawyer panels. If myself how can I do it. Kindly give me a solution

Ans: You are going through a very heavy phase. Anyone in your position will feel pressure, fear, and confusion. But you are reaching out, and that is the first and strongest step toward fixing this.

1. First, understand your situation clearly

Your salary: Rs 50,000
Your EMI burden: Rs 1,20,000

This means your EMI is more than 2 times your income, which is impossible to sustain.
You cannot continue like this. It will break your finances and mental health.

You MUST take corrective action immediately.

2. Why you feel trapped

– Loans from loan apps usually have very high interest
– Personal loans + auto loans + credit cards create multi-layer pressure
– Multiple EMIs → different due dates → late fees → more stress
– Mental pressure pushes you to borrow more → cycle becomes endless

This is a classic debt spiral, but the good news is that there are structured ways out.

3. Should you go for settlement?

Settlement is possible, but you must understand the pros and cons:

Pros

– EMI pressure reduces
– You close loans at a lower amount
– You get relief and can rebuild your life

Cons

– Your CIBIL score will drop
– For 3–7 years, you may struggle to get new loans
– Banks will mark your account as “settled” instead of “closed”
– You must negotiate carefully

But in your case, settlement is a practical option, because continuing payments is impossible.

4. Should you do settlement yourself or through a lawyer/agency?
Option A: Do it yourself

You CAN negotiate yourself.
Most lenders accept settlement offers when:

– You have overdue payments
– You show financial difficulty
– You speak politely and consistently
– You give a reasonable lump-sum offer

But: You should know how to talk, how much to offer, what to sign, and what not to sign.

Option B: Lawyer panels / debt advisors

They take fees, but they:

– Negotiate on your behalf
– Handle calls and pressure
– Know the legal terms
– Know how lenders behave
– Protect you from harassment

If you feel mentally stressed, a lawyer panel is better.

5. If you want to negotiate yourself, here is the exact step-by-step script
Step 1: Stop paying all loans temporarily

This sounds scary, but you are already unable to pay.
Missing EMIs will:

– Show lenders you are in real financial hardship
– Make them more open to settlement

Step 2: Wait for 60–90 days of overdue

This is when lenders are most flexible for negotiation.

Step 3: Start settlement conversations

Call or wait for their collection department to call you.

You can say:

“Sir, I am unable to manage my EMIs. My salary is only Rs 50,000.
I want to close this loan. I cannot pay full amount.
If you give a settlement offer, I can arrange some money and close it.”

Be calm. Don’t argue.

Step 4: Decide your offer

Typical settlement percentage:

– Credit cards: 40%–60%
– Personal loans: 40%–70%
– Loan apps: 30%–50%
– Auto loans: Depends on vehicle recovery

You can start with a low offer (30–40%) because lenders will negotiate up.

Step 5: Get “Settlement Letter” before paying

NEVER pay without getting:

– Settlement letter
– Amount confirmation
– Payment breakup
– Timeline
– Mode of payment

This letter protects you legally.

Step 6: Pay only through bank transfer

Never UPI to field agents.
Never give cash.

Step 7: Keep all documents safely

This protects you if lenders try to collect again in future.

6. Should you continue paying now or stop immediately?

With your EMI at Rs 1,20,000 and income at Rs 50,000:

You MUST stop immediately.
Continuing payments will destroy your finances and mental stability.

You are already exhausted. You need a reset.

Missing EMIs will push your accounts into “delinquency”, after which lenders become flexible.

This is a strategy, not failure.

7. How to avoid legal trouble during settlement

– Stay polite and responsive
– Don’t block lender calls
– Don’t avoid communication
– Keep records of all conversations
– Ask for written confirmation
– Never sign anything without reading
– Keep calm; 99% of cases do not go to court

Legal action is extremely rare in small retail loans unless you ignore them for years.

8. How to manage loan apps

Loan apps behave aggressively.
Here is what to do:

– Don’t get scared by threats
– They cannot visit your home legally
– They cannot call your contacts legally
– They cannot harass you legally
– You can complain to RBI if needed

They usually settle at lower amounts because they know their interest rates are unreasonable.

9. Auto loan strategy

You have Rs 12 lakh auto loan.

If EMI is too big, consider:

– Voluntary surrender of vehicle
– Lender sells it
– You pay only the balance after sale

This reduces a huge burden.

This is better than getting it seized later.

10. Your first 60-day action plan
Day 1–30

– Stop all EMIs
– Track calls
– Start talking to lenders calmly

Day 30–60

– Begin settlement negotiation
– Target highest-interest loans first (loan apps, credit cards)
– Avoid personal loans till later
– Keep weekly communication

Day 60–90

– Finalise settlement
– Pay only after getting settlement letter

11. After settlement, rebuilding your life

Once loans are settled:

Step 1: Build emergency fund
Step 2: Stop using credit cards
Step 3: Start budgeting
Step 4: Start small savings
Step 5: Slowly rebuild CIBIL

Within 2–3 years, your credit will recover.

12. The most important point

You are NOT alone.
Millions face this situation.
Most come out.
You can also come out.
Debt traps feel final, but they are fixable.

You need a structured plan and calm execution.

And you have already taken the most important step—you asked for help.

You will come out of this.

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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Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on Aug 09, 2023

Asked by Anonymous - Aug 09, 2023Hindi

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I have multiple loan with outstanding of 32 lakhs. My salary is 1.3L pm and paying emi of 82k.Not able to figure it out how to get out this debt trap

Ans: My inputs sent for a magazine article yesterday may help you. Please go through it:-

Strategy to get out of debt trap

1. Debt Consolidation: This is streamlining your debts for clarity. Debt without consolidation is like juggling a bunch of puzzle pieces while presuming that you’re in control. Merge your scattered debts into one manageable loan, reducing confusion and the risk of missing payments. This smart move can lead to lower interest rates and simplified monthly payments, giving you a clearer path out of the debt maze.

2. Debt Avalanche Strategy: This strategy treats your debts as mountains and tells you to start climbing the steepest ones first, that is, tackling the highest peaks first and the lower peaks will then automatically become a cake-walk. So, with this strategy, you focus on the high-interest loans while making minimum payments on others. As you conquer one peak after another, your momentum builds, and soon you'll find yourself on the summit of debt-free living.

3. Credit Card Balance Transfer: IN this strategy, you swap the high-interest credit card debts for friendlier ones. Through a balance transfer, you move your existing credit card debt to a new card with lower interest, that is, shifting to a smoother terrain. This gives you breathing room to pay off the principal without being weighed down by sky-high interest.

4. Practical Tips to Conquer Debt:
1. Budget with Purpose: Lay out a clear budget that allocates extra funds to debt repayment while covering essentials.
2. Cut Unnecessary Expenses: Trim down on luxuries, and redirect the saved money towards settling your debts faster.
3. Build an Emergency Fund: Having a financial safety net prevents you from resorting to more debt during unexpected setbacks.
4. Negotiate with Lenders: Reach out to your lenders for potential interest rate reductions or extended payment plans.
5. Financial Windfalls: Put unexpected bonuses, tax refunds, or gifts towards debt reduction to accelerate your progress.

Remember, Rome wasn't built in a day – the same applies to debt repayment. By combining strategic methods and prudent financial habits, you can pave the way to a debt-free horizon.

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 Jan 02, 2025

Asked by Anonymous - Dec 10, 2024Hindi

Money

Sir I draw a salary of 36,000 and recently took a loan of 958000 without closing the previous personal loan of 8,03,000 and the total amount of EMI is now 34,400. How do I get put of this debt trap?

Ans: Managing a high EMI burden of Rs. 34,400 on a Rs. 36,000 salary is challenging. Immediate steps are necessary to reduce financial stress. Let’s address this comprehensively.

Understanding Your Debt Load
1. Evaluate Debt Composition

Review the interest rates for both loans.
Understand the remaining tenure and total outstanding amounts.
2. Identify High-Interest Debt

Personal loans typically have high-interest rates.
Focus on prioritising repayment of high-cost loans.
3. Assess EMI-to-Income Ratio

Your EMI-to-income ratio is nearly 95%.
Ideally, this should be under 40%.
Short-Term Solutions
1. Increase Monthly Cash Flow

Look for part-time work or freelance opportunities.
Generate additional income to cover living expenses.
2. Reduce Monthly Expenses

Cut non-essential spending immediately.
Focus on basic necessities until your situation stabilises.
3. Restructure Existing Loans

Approach your lender for restructuring options.
Extend tenure to lower monthly EMI.
4. Consolidate Loans

Consider consolidating both loans into one with a lower interest rate.
This can simplify repayment and reduce EMI.
Medium-Term Strategies
1. Create a Budget

Track all income and expenses diligently.
Allocate every rupee to ensure repayment is on track.
2. Negotiate with Lenders

Explain your financial situation to the bank.
Request reduced interest rates or temporary relief.
3. Use Emergency Savings (If Any)

Utilise existing savings to repay a portion of the debt.
Focus on high-interest loans for maximum benefit.
4. Avoid New Debt

Do not take additional loans or credit cards.
Focus solely on repayment.
Long-Term Steps for Financial Stability
1. Build an Emergency Fund

Start saving once debt reduces.
Aim for at least 3–6 months of expenses as a buffer.
2. Learn Financial Discipline

Avoid unnecessary borrowing in the future.
Plan major expenses well in advance.
3. Seek Professional Help

Consult a Certified Financial Planner for tailored advice.
Create a roadmap for debt elimination and wealth creation.
4. Focus on Income Growth

Invest in skill development to increase earning potential.
A higher salary can ease debt repayment significantly.
Risks of Default
1. Impact on Credit Score

Defaulting on EMIs can severely damage your credit score.
A poor credit score affects future loan eligibility.
2. Legal Consequences

Lenders may initiate recovery actions if EMIs are missed.
Avoid default by restructuring loans or seeking assistance.
Final Insights
Your current financial situation requires immediate and structured action. Start by increasing cash flow, reducing expenses, and restructuring your loans. Over time, focus on financial discipline and income growth. A Certified Financial Planner can help you create a personalised debt repayment strategy and guide you towards a stable financial future.

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 Aug 02, 2025

Question by Prasenjit - Jul 13, 2025Hindi

Money

I have debt of 15 laks in multiple loan , i have net income 40000, how can i manage to recover debt. i want to convart under 1 EMI

Ans: You’ve taken a responsible step by reaching out for help. Managing Rs 15 lakh debt with Rs 40,000 net income is tough, but not impossible. With clear priorities, financial discipline, and a focused plan, you can gain control.

Here’s a full 360-degree guidance tailored to your situation:

» Understand the Debt Structure

List all your existing loans separately.

Note down principal, interest rate, and monthly EMI for each.

This gives a clear picture of which loans are draining you most.

Check which loans are unsecured (like personal loans or credit card).

These usually have high interest and need attention first.

» Analyse Existing EMI Commitments

Add up all monthly EMIs you're paying now.

If it is already over 50% of your income, you’re in a debt trap.

You need breathing space to function monthly.

A single EMI will simplify your finances.

» Explore Loan Consolidation Option

Aim to combine all loans into one.

Apply for a debt consolidation loan from a bank or NBFC.

This is often offered as a personal loan at lower interest.

It will help bring all existing debts under one roof.

You’ll move from many EMIs to one.

Monthly EMI may get reduced depending on tenure and rate.

Banks may reject if your credit score is poor.

Try a top-up loan if you already have a running loan with good history.

Avoid peer-to-peer lenders or unregulated fintechs.

Their rates may be high and increase your burden.

» Consider a Secured Loan if Consolidation Fails

If you have any asset (FD, insurance, gold), use it to get a secured loan.

A loan against asset has lower interest and longer tenure.

This will reduce EMI pressure and help repay old loans.

Avoid pledging your house unless it’s a last resort.

Loan against LIC is also an option if policy is active and eligible.

Gold loan from a trusted NBFC or bank is also feasible.

» Prioritise Debt Based on Interest Rates

Focus on clearing high-interest loans first.

Credit card dues and personal loans often have the highest interest.

Pay minimum for other loans and direct extra funds to the costliest one.

This is called the avalanche method.

» Create a Zero-Based Monthly Budget

Every rupee should have a role – income minus expenses must be zero.

First set aside money for EMI, then essential expenses like food and utilities.

Cut all luxury, entertainment, and unnecessary spending for now.

Even Rs 500 saved matters.

Shift to cash-based spending to avoid impulse purchases.

Keep track of every rupee going out.

» Increase Income Proactively

Look for part-time or weekend freelance work.

Online tuition, delivery jobs, content creation – anything legal and scalable.

If your current role allows, ask for overtime or explore side hustle options.

Even Rs 5,000 extra monthly can fast-track repayment.

» Involve Family if Comfortable

If you have family support, discuss the situation openly.

Sometimes a short-term interest-free family loan can help consolidate.

Transparency helps avoid emotional pressure later.

But don’t rely entirely on others; own your financial recovery journey.

» Avoid These Common Mistakes

Don’t borrow again to repay existing loans unless it is a consolidation loan.

Avoid using credit card to meet EMI payments.

Don’t opt for informal lenders or daily interest options.

Don’t skip EMIs – it damages your credit profile.

Don’t delay action. Debt doesn’t resolve on its own.

Every month matters. Small actions add up.

» Plan for Emergency Fund in Parallel

You still need Rs 500–Rs 1000 monthly savings in an emergency fund.

Use a basic recurring deposit or a digital FD.

This avoids taking new loans for small future needs.

Financial security needs backup.

» Build Credit Profile Slowly

Once your single EMI runs smoothly for 6 months, your credit score will improve.

This opens future loan refinancing or top-up options.

Never close old loans before checking credit score update.

Also, avoid too many loan applications together – it reduces score.

» Use a Certified Financial Planner for Structuring

If you feel overwhelmed, engage a MFD-CFP professional.

They can assist in restructuring through banking partners.

They may also help with disciplined investing once debt is in control.

DIY approach can become stressful and scattered.

» Be Patient and Track Progress

Track your outstanding debt monthly.

Maintain a simple notebook or Excel sheet.

Celebrate each Rs 1 lakh cleared.

Stay motivated – it’s not a lifelong burden.

» Finally

You are not alone. Many professionals have cleared larger debts with smaller income.

The goal is not overnight debt-freedom, but steady recovery.

One EMI, zero impulsive expenses, and small savings – these are your new rules.

With 24 months of discipline, your financial freedom is achievable.

Take back control. One step at a time.

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

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MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 09, 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: No, this minor “Mr./Mrs.” prefix discrepancy will not result in the rejection of your eligibility for counselling. Submit separate affidavits for each parent along with your Class 10 certificate, Aadhaar card, parents’ ID proofs, and the JEE application printout during JoSAA verification to prevent queries. Stay worry-free and concentrate only on the upcoming JEE Examination. Forget about the mistake you made with prefixes. You have ample time to correct it and to prepare affidavits. Time is more important to you. If possible, make the corrections in the 2nd attempt of JEE, if they permit you to do so. For 1st session of JEE, only a few days are remaining. Devote your full time to the preparation only. Best of luck to you.

Good luck.
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Radheshyam

Radheshyam Zanwar |6739 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 09, 2025

Asked by Anonymous - Dec 08, 2025Hindi

Career

Hello sir main intermediate me pcb se thi aur mujhe ki jarurat hai to kya mai math ka paper kaise du ? plz reply sir

Ans: If you studied in PCB and now need Maths, you must appear for the Maths exam as a private candidate through your state board or NIOS. Recommending to contact the school/college administration for more and accurate help.

Good luck.
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Radheshyam

Nayagam P P |10853 Answers |Ask -Follow

Career Counsellor - Answered on Dec 09, 2025

Question by Mannan - 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: Mannan, Your admission will NOT be rejected for this minor discrepancy. Prefix additions (Mr./Mrs.) are considered minor name discrepancies. JOSAA accepts affidavits clarifying such issues.?

Submit affidavits alongside:? (a) Class 10 marksheet/Aadhaar card (proof of correct names) (b) Class 12 marksheet (c) JEE Main admit card. Important: Affidavits must clarify the prefix discrepancy exists in registration only, not in original documents. Respond promptly to any JOSAA verification queries; non-response causes disqualification. Many candidates resolve similar discrepancies annually without admission issues. All the BEST for Your JEE-2026!

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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

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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