Need Expert Advice?Our Gurus Can Help

24-Year-Old Student Overwhelmed with Debt, Seeking Urgent Advice

Ramalingam Kalirajan |7609 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Dec 02, 2024

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

Asked by Anonymous - Dec 01, 2024Hindi

Hello sir, I'm 24 years old currently (student). I have took a loan of rupees 40000 rupees for my upsc coaching and now I'm not able to pay back, can't tell this to anyone whom i know, please give me some advice how to repay it urgently because of this i can't even study, sometimes i even think of suicide. I can do anything right now for money just to repay it. Please help me out!

Ans: Your situation is difficult, but it's solvable with proper guidance. You're taking the right step by reaching out. Recognize that your education and goals are important. This is a phase, not the end of your journey.

Practical Steps to Manage Debt
1. Pause and Reflect
Suicidal thoughts signal stress. Talk to a trusted friend or counselor. Your life is valuable.

Understand that debts can be repaid, but emotional health is harder to recover.

2. Part-Time Income Opportunities
Take up flexible part-time work that doesn't disturb your study schedule.

Consider online tutoring, freelancing, content writing, or data entry jobs.

Look for short-term opportunities in your locality like delivering food or part-time store assistance.

3. Speak with Your Loan Provider
Contact your lender and explain your situation. Many lenders offer revised payment options.

Request a temporary deferment or a restructuring of your repayment terms.

4. Leverage Your Skills
If you are skilled in areas like language, teaching, or digital tools, monetize them.

Start offering these services to peers or on online platforms.

5. Family Support Without Disclosure
If you cannot discuss the loan, ask for funds for a generic purpose. Frame it around educational needs.

Request small amounts rather than the entire sum to avoid suspicion.

6. Minimize Expenses
Avoid unnecessary expenses. Cut down on travel or leisure costs.

Create a budget that prioritizes loan repayment over all else.

Long-Term Financial Stability
1. Building a Better Relationship with Money
Once this loan is cleared, avoid taking loans without a solid repayment plan.

Begin saving even in small amounts for emergencies.

2. Future Earnings and Loan-Free Education
Focus on UPSC preparations. Success will transform your financial condition.

Avoid stressing about debts; instead, channel energy into productive activities.

3. Exploring Scholarships or Educational Grants
Check for available scholarships or grants. Many NGOs support deserving students.

Talk to your coaching institute about possible fee reductions or instalment plans.

Emotional Support and Self-Care
1. Seek Emotional Guidance
Approach a counselor for help. They provide strategies to manage stress effectively.

Surround yourself with supportive individuals who uplift you emotionally.

2. Maintain a Healthy Routine
Include physical activity like walking to keep stress at bay.

Break tasks into smaller, manageable pieces to reduce the feeling of being overwhelmed.

Finally
Your current challenge is temporary. Your resilience will shape your future. Debt repayment is possible with a focused plan and support. Prioritize health and long-term goals over temporary struggles. With determination, you can emerge stronger.

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.