I am currently facing a severe debt situation. I have accumulated liabilities amounting to ₹8 lakh, while my monthly salary is ₹57,033. All of the debt has been taken from payday lenders (NBFCs) (31 lenders), and I have maintained a consistent record of timely payments without any delays. I have attempted to obtain a consolidation loan, but my applications have been unsuccessful. Debt counselling has also not provided any viable solutions, and I am under significant pressure from the lenders. I do not have any assets, and support from friends or family is not possible at this time. I would like to know whether there are any credible platforms that can provide a personal loan to help me consolidate all my existing debts into a single loan with manageable monthly EMIs.

Ans: You’ve taken the first right step by asking for help.
You are under a very high debt burden.

Your monthly salary is Rs. 1,13,000.

But your monthly EMIs total Rs. 1,10,000.

You are left with only Rs. 3,000 each month.

This is financially risky.

You are walking on a financial knife’s edge.

Now let’s look at this from a full 360-degree view.

Current Debt Assessment

Home loan EMI is Rs. 54,000.

Top-up loan EMI is Rs. 10,000.

Other loans total Rs. 20 lakh. EMI is Rs. 46,000.

Total EMI burden is Rs. 1,10,000 per month.

Salary is Rs. 1,13,000. Surplus is only Rs. 3,000.

Debt-to-income ratio is extremely high. Over 95%.

Your credit score may already be affected.

Debt consolidation loans are not available.

You are financially stuck. But not helpless.

Cash Flow Analysis

Your expenses are locked due to EMIs.

You are unable to save or invest anything.

Emergency fund is likely nil or very low.

Any job loss or health issue may push you into default.

Financial stress is silently growing each month.

You may feel emotionally drained. That’s understandable.

Let us now look at a practical and detailed solution.

Step 1: Create a Simple Household Budget

List your fixed and essential monthly expenses.

Cut all non-essential expenses like dining out, OTT, travel.

Stop all discretionary spends immediately.

Share your plan with your family. Seek their support.

Keep your basic needs within Rs. 15,000 if possible.

This can free some small cash flow.

Step 2: Review Your Loan Types

Home loan is secured. Try not to default on this.

Top-up loan may also be secured.

Other Rs. 20 lakh debt is likely personal loans or credit card dues.

These usually carry high interest. 18% to 36%.

You must focus on reducing these debts first.

Step 3: Approach Existing Lenders for Restructuring

Visit the banks or NBFCs of your personal loans.

Request loan tenure extension to reduce EMI.

Seek temporary moratorium or EMI pause, if allowed.

Convert credit card dues to EMI-based loans if not already done.

Explain your situation with documents.

Many lenders offer hardship relief plans.

Step 4: Consider Liquidating Idle Assets

Do you have any unused gold jewellery?

Gold can be pledged with banks for lower interest.

Use that to prepay high interest loans.

Avoid gold loans from NBFCs or pawnbrokers.

If you have any old fixed deposits, use them wisely.

But don’t break emergency funds below Rs. 50,000.

Step 5: Explore Support From Family

Speak to close family members for interest-free support.

Avoid embarrassment. Be honest and transparent.

Even Rs. 1 lakh from 2-3 members helps greatly.

Use that money to prepay high EMI loans first.

Make a clear written repayment plan for family loans.

Step 6: Prioritise Loan Repayments

Pay home loan and secured loans on time.

Delay or pay minimum for high-cost loans temporarily.

Focus on clearing smaller loans first.

Use the debt avalanche or snowball method.

Every cleared loan will reduce pressure quickly.

Step 7: Start a Monthly Expense Tracker

Write every expense daily in a diary.

This builds spending awareness.

Most people spend blindly and get into trouble.

Once you track, control becomes easier.

Use basic apps or paper diary – anything that works.

Step 8: Increase Income Streams

Consider part-time weekend freelancing or teaching.

Rent out a room or vehicle if possible.

Explore online micro tasks.

Any extra Rs. 5,000–10,000 per month helps a lot.

Ask your spouse if she can also support for a few months.

Step 9: Avoid New Loans or Balance Transfers

Do not apply for new loans now.

Every new loan reduces your credit score further.

Balance transfers look attractive but may have hidden costs.

Focus on repaying existing loans only.

Don’t fall for quick fix online ads for loans.

Step 10: Rebuild Your Financial Foundation Slowly

Once you clear 2-3 EMIs, keep Rs. 5,000 as monthly savings.

Build Rs. 1 lakh emergency fund over one year.

Then start SIPs in regular mutual funds through MFDs.

Avoid direct mutual funds now.

Direct plans have no advisor support.

Regular plans with MFD give guidance from a Certified Financial Planner.

That support is needed in your situation.

Step 11: Insurance Check and Risk Cover

Check if you have term life insurance of Rs. 50 lakh minimum.

If not, take one after 3–6 months once EMIs reduce.

Medical cover for family is also important.

Without it, one illness can wipe out all progress.

Step 12: Mental Well-being and Stress Management

Don’t suffer silently. Talk to trusted friends.

Join simple meditation or yoga.

Take daily walks. Keep yourself active.

These help your mind stay stable under pressure.

Debt is financial. But it can affect health too.

Step 13: Stay Disciplined for 24 Months

This is not a quick fix. It needs time.

Stay focused for 18 to 24 months.

Each repaid loan gives peace and hope.

Avoid any risky investment schemes.

Avoid crypto, trading, or chit funds.

Don’t mix insurance with investment.

Step 14: Build Habits for the Long Term

After stabilising debt, increase SIPs slowly.

Review finances every quarter.

Take support from a Certified Financial Planner yearly.

Track net worth growth yearly.

Keep liabilities low and assets strong.

Step 15: Talk to a Certified Financial Planner

A CFP can help you structure a realistic repayment plan.

They offer 360-degree financial planning, not product selling.

They also keep you accountable.

Make it a goal to be debt-free in 3 years.

Finally

You are facing a tough situation. But not a hopeless one.

Your courage to share shows strength.

You must act now. Delay will worsen things.

Avoid shortcuts and stick to the right steps.

Each month you move forward is progress.

And financial freedom will be yours, step by step.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You are facing a serious financial challenge. But with a structured and practical approach, it is manageable. You can turn it around with right steps. Let me guide you professionally, step by step.

Current Debt Situation Assessment
Your total debt is Rs. 30 lakhs.

These are all unsecured loans. No collateral involved.

You earn Rs. 70,000 per month.

This means your EMI commitments are likely more than 60% of your income.

This is financially unsustainable.

Your credit score is between 650 and 700.

This shows some payment delays or defaults may have happened.

You are also under mental and emotional pressure. This is understandable.

Debt Management Priority Planning
First, stop borrowing more to pay existing loans.

Do not use credit cards or instant apps now.

Your first focus should be to regain cash flow stability.

List all your loans in one place: amount, EMI, interest, lender name.

Note down which loan is the costliest. Also note which one is defaulted.

Prioritise loans with higher interest and legal impact.

If you are already defaulting EMIs, speak to your lenders.

Ask for temporary moratorium or restructuring.

Keep all communications documented. Send follow-ups by email also.

Try to avoid legal escalation. That brings long-term damage.

Debt Consolidation Evaluation
Yes, there are agencies who help in loan consolidation.

These are not regulated fully. Be careful in choosing them.

You can also talk to banks or NBFCs directly.

Some banks give top-up personal loans to close other loans.

But your credit score may be a hurdle for such loans.

If you have a trustworthy family member with better credit, consider loan on their name.

That loan can be used to pay off your high-cost debts.

Try to convert high-interest loans to lower-interest ones.

For example, a credit card interest of 36% can be replaced with 14% loan.

But take new loan only if it reduces your monthly EMI burden.

And don’t use new loans for spending. Use it only to close earlier loans.

Debt Settlement Possibilities
Debt settlement is an option when repayment is not possible.

You can offer a lump sum to close the loan at lower amount.

But this impacts your credit score severely.

It is shown as “settled” in your CIBIL for 7 years.

Use this option only when you are completely out of options.

Speak to the bank’s collection team for settlement negotiation.

Some agencies also help in negotiation. But they charge high fees.

Be cautious of frauds. Don’t pay upfront fees to unknown agents.

If you use settlement, start rebuilding credit immediately.

Budget Optimisation and Expense Control
Next, create a monthly spending plan. Every rupee should have a purpose.

Eliminate all unnecessary expenses. Focus only on needs.

Cut down lifestyle and avoid non-essential EMI purchases.

Avoid eating out, entertainment, shopping, and weekend trips.

Don’t use BNPL or UPI credit services.

Try to live on Rs. 30,000 per month.

Use balance Rs. 40,000 for minimum EMIs and emergency.

Avoid using credit card to meet shortfall.

Emergency Support Actions
If you have gold jewellery, consider gold loan. Not gold sale.

Gold loan can be taken at 8%–10% rate. This is much cheaper than credit cards.

Use gold loan only to repay high interest unsecured loans.

You can repay the gold loan slowly and safely.

Avoid pawn brokers. Go to banks or approved NBFCs.

Income Enhancement Actions
Explore freelance or part-time work options. Even Rs. 5,000 helps.

Sell any unused items: electronics, gadgets, appliances.

Use online resale platforms. Small amounts add up.

If family members can contribute income, include that temporarily.

Try to improve your job skill and aim for salary hike in 6 months.

Long term recovery needs higher income, not just lower expenses.

Mental Health and Family Communication
You are under pressure. Please talk to someone close.

Mental stress can harm both money and health.

Share your situation with family members if possible.

Get emotional and moral support. It makes a big difference.

Don’t isolate yourself. Speak to one person daily.

Credit Score Repair Strategy
Once EMI payments are stable, credit score will start improving.

Make minimum payments on time every month.

Don’t close old credit cards if they are not overdue.

Avoid new credit applications for next 12 months.

Keep one secured credit line open. Eg: fixed deposit backed credit card.

Keep credit utilisation low. Below 30% of the limit.

Check CIBIL report once every quarter. Correct any errors.

Avoid These Common Mistakes
Don’t take advice from agents or YouTube without checking background.

Don’t share PAN, OTP, or bank details with any unknown party.

Don’t trust anyone who promises “loan wipe off” or “instant CIBIL fix.”

Avoid investing in unknown schemes now. Focus only on reducing debt.

Don’t take LIC policy loans unless policy is close to maturity.

Future Plan Once Loans Are Settled
Once your cash flow is clear, create emergency fund of 6 months income.

Start SIP in actively managed mutual funds through MFD with CFP certification.

Regular funds give guidance and support when markets are volatile.

Direct funds look cheaper, but they lack professional guidance.

Wrong direct fund choices may cost more than regular fund commissions.

Focus on wealth building only after clearing liabilities.

Insurance must be separate. Buy term plan only.

Don’t mix insurance and investment. ULIPs and endowment are not suitable.

Finally
Your situation is hard. But not impossible.

You need a clear plan, daily focus, and patience.

You can turn around your life in 24 to 36 months.

Many have done this before. You can do it too.

Take one action per day. Progress will follow.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You have shown great courage by reaching out.
Handling debt stress with responsibility is not easy.
You’ve taken the first important step by seeking help.
And that deserves respect.

Now let’s analyse your situation completely and create a 360-degree plan.
The goal is to reduce monthly pressure and bring back control.
You need both emotional support and practical steps.
Let us now assess every angle and build a solution.

» Current EMI Burden vs. Salary – Not Sustainable

– Your salary is Rs.45,000 per month.
– Total EMI obligation is Rs.90,000.
– This is double your income.
– This is a very high-risk position.
– You cannot afford to continue like this for long.

This can lead to:

– Loan defaults
– Credit score damage
– Legal actions from lenders
– Mental and physical stress

The priority now is to reduce the EMI burden quickly.
Your focus must be on damage control and survival.
We will work step-by-step to build back your stability.

» Breakdown of Debt – Let’s Assess the Pieces

– Home loan: Rs.35 lakh, EMI Rs.30,000
– Five personal loans: Rs.18 lakh, EMI Rs.50,000
– Credit card dues: Rs.2 lakh, EMI Rs.10,000

Total monthly EMI: Rs.90,000
Net take home: Rs.45,000

This is a serious mismatch.
You are clearly in a debt trap.
Your salary is insufficient to pay minimum dues.

But do not worry.
There are structured steps that can help.

» Top-Up Loan Option Already Declined – So What’s Next?

– You applied for a top-up loan from the bank.
– It got rejected due to high existing debt.
– This is common in over-leveraged cases.

But it’s not the end of the road.
Other strategies are available.
You can still repair and recover over time.

» Start with Credit Card Loans – Treat Them as Emergency

– Credit card debt is the most expensive of all.
– Interest rates can go beyond 36% per year.
– Even EMI conversion keeps it high.

Action Plan:

– Prioritise credit card repayment over others.
– Stop using these cards immediately.
– Try to negotiate settlement or interest waiver.
– Speak to the bank’s collections or recovery team.
– Explain your medical emergency.
– Request a lower one-time payment.

Even if it impacts your credit score slightly,
it’s still better than interest eating your money endlessly.

» Debt Consolidation Loan – Be Very Cautious

You asked about consolidation loan providers.
Yes, these exist in the market.
But most are unsecured lenders.
Some may be fraudulent or aggressive.
Few will offer help when credit score is low.

If you find a legal NBFC or lender offering long-term personal loan:
– Check RBI registration
– Do not pay any fee before loan is given
– Read all fine print carefully
– Avoid if they ask for blank cheques or Aadhaar
– Take help from a Certified Financial Planner if unsure

That said, getting approval at this stage is tough.
So we need practical non-loan strategies too.

» Home Loan – Can You Pause or Restructure?

– Your home loan EMI is Rs.30,000
– This is the only secured loan in your portfolio
– Lenders are more flexible with secured loans

Talk to your home loan bank and ask:

– Can EMI be reduced temporarily?
– Can tenure be extended?
– Can moratorium be offered for few months?
– Can interest-only payment be done for 6-12 months?

Many banks have hardship options.
Explain your medical emergency.
Submit all documents and salary slips.
Be honest.
Ask for a temporary relief program.

Reducing EMI by even Rs.10,000 will help you breathe.

» Personal Loans – Consider One-Time Settlement Option

– You have five personal loans.
– EMI is Rs.50,000 per month.

Right now, continuing this is impossible.
You may soon default on multiple EMIs.
That will impact your CIBIL score and future chances.

Action Plan:

– Call each lender separately
– Tell them you are unable to pay due to medical reasons
– Request for a one-time settlement
– Ask for partial waiver of interest
– Some NBFCs accept 60-70% of balance to close
– You can pay that from any future bonus or help from family

Yes, it may impact your credit score.
But it is better than total default.
Credit score can be rebuilt later.
Right now, saving yourself is the top priority.

» Can You Liquidate Any Assets or Get Family Support?

– You haven’t mentioned if you have savings or gold.
– Even small assets can help in short term.

Suggestions:

– Check if gold can be pledged for a low-interest loan
– Liquidate any stocks or mutual funds, if any
– Speak to close family for a one-time help
– Avoid chit funds, new loans or apps for support

Don’t feel ashamed asking family.
This is a health-related debt.
People do come forward when they understand the real need.

» Legal Support – Use RBI Framework If Harassed

– If lenders threaten or misuse recovery agents, don’t panic.
– RBI has clear rules.
– You can file a complaint with the lender grievance cell.
– National Helpline and Banking Ombudsman are also available.

Don’t suffer silently.
If harassment starts, take legal support.
You can contact a Certified Financial Planner to guide you properly.

» Mental Health – Take Care of Yourself

– Financial stress can affect your sleep, energy and family life.
– Do not isolate yourself.
– Talk to someone you trust.
– Simple breathing or meditation helps in reducing anxiety.
– Prioritise mental peace over perfection.

A calm mind will help you take clear steps.
You are not alone in this.
Thousands face such problems every year and come out of it.

» Do Not Fall for Debt Traps or Fraud Apps

– Avoid payday loan apps or private lenders
– Never give Aadhaar, OTP or bank details to unknown agents
– Avoid people who ask for upfront money to get loans
– These are often fake

Stick to legal banks or NBFCs only.
If unsure, verify through RBI website.
Or ask a Certified Financial Planner to verify.

» Track and Rebuild Your Credit Score Over Time

– Once your cash flow improves, plan to rebuild score
– Repay at least one loan fully
– Don’t default again
– Avoid new cards or personal loans for next 2 years
– Track your credit score every 3 months

You will need good credit for future home, vehicle or education goals.
It can be rebuilt with patience.

» Build Emergency Fund Slowly Later

– Once this crisis is over, build a buffer fund
– Start with just Rs.500 or Rs.1000 per month
– Use a separate account or liquid mutual fund
– This helps avoid new debt in the future

Emergency fund is like a life jacket.
Without it, small shocks become big disasters.

» Finally

– You are facing real pressure now.
– But it can be reversed with right steps.
– Prioritise basic needs and credit card repayment
– Negotiate and settle personal loans where possible
– Ask home loan lender for temporary support
– Avoid fake lenders and illegal apps
– Speak to family for emergency support
– Don’t feel ashamed – this is temporary
– A Certified Financial Planner can help plan repayment strategy
– Rebuild your life one small step at a time

You have strength inside.
Just take one smart step today.
That’s enough for now.

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

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