Hello sir I have app 1cr debt and I have one flat 65lkhs and one more joint property 70lkhd and my salary is 1 lkh can you please suggest how to get out of this debt around 50 lkhs are credit cards

Ans: Dear Mohammed,

Handling your debt effectively and improving your financial health requires a strategic approach. Here are some steps you can take to manage and eventually eliminate your debt.

Assess Your Current Financial Situation
Monthly Income and Expenses: You have a monthly income of Rs 1.5 lakhs and expenses of Rs 2.5 lakhs. This results in a deficit of Rs 1 lakh per month.

Borrowed Money: You have borrowed Rs 80 lakhs from the market. This is a significant amount and needs careful planning to repay.

Create a Detailed Budget
Track Expenses: Note down all your expenses, categorize them, and identify non-essential items.

Cut Down Costs: Focus on reducing discretionary spending. Prioritize needs over wants.

Increase Income Streams
Additional Work: Look for part-time or freelance opportunities to boost your income.

Utilize Skills: Use your skills to offer consulting or other services.

Debt Repayment Strategy
Prioritize High-Interest Debt: Focus on repaying the highest interest debt first. This will reduce the overall interest burden.

Debt Consolidation: Consider consolidating your loans into a single loan with a lower interest rate. This simplifies payments and can reduce interest costs.

Negotiate with Creditors
Interest Rate Reduction: Contact creditors to negotiate lower interest rates or extended repayment terms.

Restructuring Loans: If possible, restructure your loans to make repayment more manageable.

Financial Discipline
Avoid New Debt: Resist taking on new debt until the existing one is under control.

Emergency Fund: Gradually build an emergency fund to avoid relying on debt for unexpected expenses.

Utilize Professional Guidance
Certified Financial Planner: Seek advice from a Certified Financial Planner (CFP). They can provide a personalized plan based on your financial situation.
Regular Review and Adjustment
Monthly Review: Regularly review your budget and repayment plan. Adjust as needed to stay on track.

Final Insights
Commitment: Managing and eliminating debt requires commitment and financial discipline.

Professional Help: Utilize professional guidance to navigate complex financial decisions.

Long-Term View: Focus on long-term financial health, not just immediate relief.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You are 29 years old. Your salary is Rs 45,000 per month.

You have a personal loan of Rs 3.6 lakhs.

Also, you have credit card dues of Rs 8 lakhs.

You are unable to pay credit card bills now.

You have no investments and no other liabilities.

Let us now create a complete 360-degree action plan.

1. Appreciate Your Awareness and Intent
Many delay accepting financial problems.

You have taken first right step.

Self-awareness is the start of improvement.

Wanting to fix debt at 29 is a strength.

You still have age on your side.

Let’s build a structured plan.

2. Understand the Depth of the Problem
Personal loan is Rs 3.6 lakhs.

Remaining tenure is not shared. Assuming 2 years left.

EMI may be around Rs 18,000 monthly.

Credit card debt is Rs 8 lakhs.

You are unable to pay cards.

Interest on cards is very high. 36% to 48% yearly.

Total monthly obligations may cross your salary.

You are possibly rotating balances.

This creates debt trap.

3. Avoid These Immediate Mistakes
Don’t take new loans to pay old loans.

Don’t use another credit card to pay EMIs.

Don’t borrow from friends or family without plan.

Don’t ignore payments completely.

Don’t avoid talking to lenders.

Don’t fall for credit repair scams.

Don’t get into chit funds or illegal lending apps.

These steps will make things worse.

Be alert. Take right action.

Focus on reducing damage first.

4. Create Detailed Cash Flow Sheet
Write down all income clearly.

Net monthly salary is Rs 45,000.

Write fixed expenses like rent, food, bills.

Subtract them from salary.

See how much is left for EMI.

Include all EMI amounts and credit card dues.

Create a month-by-month payment plan.

This will show if you are in deficit.

Don’t guess figures. Use actuals.

This is your financial mirror.

You must see full picture.

Once visible, damage control is easier.

5. Negotiate With Credit Card Companies
Rs 8 lakhs in credit card dues is serious.

Interest can destroy your finances.

Call all card companies immediately.

Request for settlement or restructuring.

Some may convert dues to EMI loan.

Some may waive part of interest.

Ask for reduced interest payment plans.

Credit card companies prefer settlement.

They will cooperate if you initiate.

Keep records of all talks.

Ask for written agreements before paying.

Don’t avoid them. Speak with humility.

Explain your situation truthfully.

Ask for 3 to 4 year repayment option.

Keep paying even small amount.

Shows intent. Protects credit score.

6. Explore Debt Consolidation Option
Check if you are eligible for consolidation loan.

Some NBFCs or banks offer personal loan for debt clearance.

If you get loan under 15% interest, use it to clear cards.

Don't apply everywhere.

Apply through one or two banks.

Replacing credit card debt with lower interest is smart.

But take only if EMI is affordable.

Loan EMI should be manageable monthly.

Don’t borrow more than needed.

Aim is debt control, not credit addition.

Check if your existing personal loan can be topped up.

Use that amount to clear costlier card dues.

Avoid using new card or spending.

Don’t increase lifestyle till you are debt free.

7. Cut Down All Non-Essential Spending
For next 24–30 months, live very frugally.

Cancel OTT, eating out, apps and gadgets.

Use basic mobile plan.

Shift to low-rent location if needed.

Use public transport or shared rides.

Inform family to support budget limits.

Cook food at home.

Postpone all purchases.

Every rupee saved must go to debt.

Frugal life now will give peaceful future.

Make savings a mission.

Cut expenses till income exceeds expenses.

8. Increase Income in Parallel
Rs 45,000 income is not enough to pay Rs 11.6 lakhs debt.

Try weekend or part-time freelance jobs.

Look for skill-based side income.

Tuitions, delivery, design, writing, coding.

Even Rs 8,000 extra will help.

Don’t feel ashamed.

Extra income will reduce debt faster.

Upskill with free courses if possible.

Aim to increase income steadily.

Target Rs 60,000 salary within 12–18 months.

Growing income + reduced lifestyle = faster debt freedom.

9. No Investments Until All Dues Cleared
Many ask about SIP while in debt.

But right now, you must focus only on debt clearance.

Investing when paying 36% interest is waste.

There is no investment giving that return.

Clear all credit cards and personal loan first.

Only then start investing.

Don’t fall for quick money schemes.

Don’t invest in stocks or mutual funds now.

All money should go to debt EMI.

Keep this discipline strictly.

You can invest later peacefully.

Now is time to reset, not invest.

10. Rebuild Credit Score Later
Credit score will drop now. That’s okay.

Once loans are paid, it will improve.

Don’t panic seeing CIBIL drop.

Focus on regular payments.

Avoid delays beyond 60 days.

Even if small amount, pay regularly.

Keep checking report every 6 months.

After debt freedom, apply for secured credit card.

Use it responsibly to rebuild credit.

Don’t try shortcuts to repair credit now.

Credit repair is automatic with good behaviour.

11. Emotional and Mental Discipline
Debt stress affects mental health deeply.

Don’t isolate yourself.

Share with family or close friends.

Keep faith in your plan.

Stay away from distractions or pressure.

Practice patience and daily motivation.

Remind yourself this is temporary.

Debt can be cleared with effort.

Don’t break emotionally.

Stay focused for next 2–3 years.

Freedom from debt will be your reward.

12. Final Insights
You have done the right thing by asking help early.

Rs 11.6 lakhs debt looks big today.

But you can clear it step-by-step.

Reduce expenses sharply.

Try to earn more.

Negotiate smartly with credit card lenders.

Consolidate debt if suitable.

Follow one disciplined lifestyle for 24–30 months.

Don’t invest till all debt is gone.

Then slowly build emergency fund.

Later, start SIP with guidance from Certified Financial Planner.

Future is still bright for you.

With planning and patience, you will come out stronger.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: You are brave for reaching out. That is the first important step.

Let us now understand your situation and build a 360-degree action plan.

You are 46 years old. You earn Rs 2.1 lakh salary and Rs 10,000 rent monthly.

That brings your monthly income to Rs 2.2 lakh.

You have more than Rs 50,000 shortfall every month due to EMIs and living expenses.

You have no savings except your PF.

You are under financial pressure. But with the right steps, this can be fixed.

Let’s go step-by-step.

Understanding Your Current Cash Flow
Monthly income = Rs 2.2 lakh.

Monthly outflow = Rs 2.7 lakh or more.

Monthly shortfall = Over Rs 50,000.

Debt is rising each month.

This is unsustainable. It will only get worse if not acted on today.

Debt must be handled with strong discipline.

Break Your Expenses into 3 Buckets
Fixed Obligations

EMIs for loans (home, personal, credit cards, etc.)

Any rent or school fees

Insurance premiums

Essential Living Costs

Groceries

Utility bills

Transport and fuel

Children’s expenses

Discretionary Costs

Dining out

Online shopping

OTT subscriptions

Lifestyle and weekend spending

Action needed:

Prepare a written list of all monthly expenses.

Mark fixed, essential, and avoidable clearly.

This gives control over leakages.

You cannot cut EMIs. But you can control lifestyle spends.

Loan Review and Restructuring
You are most likely managing:

Credit card dues

Personal loans

Car loan

Home loan

All loans are not equal. Some eat more than others.

Steps you can take:

List all your loans with EMI, balance, and interest rate.

Identify high-interest loans (credit cards, personal loans).

Combine them into one low-interest loan (if credit score allows).

Talk to your bank for debt consolidation or restructuring.

A single consolidated loan will reduce EMI stress.

Avoid multiple EMIs across banks or NBFCs.

Also:

Talk to a Certified Financial Planner.

Let them negotiate with bank or NBFC with you.

Avoid delay. Action today saves future pain.

Emergency Action Plan for Next 6 Months
You are in a negative cash flow. So a recovery plan is urgent.

Start with these 6-month steps:

Stop all SIPs and investments temporarily.

Stop credit card usage. Lock cards if needed.

Use PF partial withdrawal only if absolutely needed.

Freeze lifestyle costs. Cut all non-essential spends.

Check if you can sell unused assets (bike, gadgets, furniture).

Explore gold or old jewellery kept unused at home.

Use that to reduce highest interest debt first.

This will give temporary relief. Not long-term solution. But first, plug the gap.

Increase Income to Close Monthly Shortfall
Your income is Rs 2.2 lakh. Expenses are Rs 2.7 lakh.

So we also need to increase your inflow.

Here are few realistic ways:

Take weekend tuitions (school subjects or competitive exams).

Try weekend freelancing based on your skills.

Ask employer if advance salary is possible short-term.

Check if spouse or family can take part-time remote work.

Let elder children (if any) take small paid internships.

Every Rs 5,000–10,000 counts now. You are not doing this forever.

Once debt is under control, you can relax again.

Loans Against PF – Only as Last Option
You have PF corpus. That is your only savings.

But avoid withdrawing fully.

If you must:

Take only partial PF loan.

Use it to repay high-interest debt.

Do not use PF for daily expenses.

PF is your future retirement fund. Touch it carefully.

What Not to Do in This Phase
Don’t take another personal loan to pay EMIs.

Don’t use credit card to pay other card bills.

Don’t borrow from friends unless short-term and clear.

Don’t invest in any risky product expecting quick returns.

Avoid insurance-linked investments. Avoid chit funds.

Your focus now is recovery. Not returns.

If You Hold LIC or ULIPs
If you have:

LIC endowment policy

ULIP policy

Money-back or investment-insurance combo policy

Then:

Check surrender value.

Exit the policy if locked-in period is over.

Use surrender money to reduce EMI pressure.

Reinvest in mutual funds only after debt is cleared.

Insurance and investment must be kept separate.

How to Exit This in Next 2–3 Years
Here’s your 24-month path:

Consolidate high-interest debt now.

Cut expenses by 20–30%.

Pause all new investments temporarily.

Find side income source within 3 months.

Review cash flow every month with your spouse.

Pay off one loan at a time using bonus or side income.

Talk to Certified Financial Planner every 3 months.

Don’t make any emotional money decision alone.

Your life can fully change in 2 years. But it starts today.

After Stability, Start Fresh Plan
Once debt is under control, build again with steps like:

Start emergency fund SIPs – Rs 5,000 monthly into liquid funds.

Start mutual fund SIPs via MFD-CFP route – Rs 10,000 monthly.

Start separate goal funds – child, retirement, vacation, etc.

Review debt, expenses, goals every 6 months.

Build term insurance, health insurance properly.

This time, stay debt-free for life. Learn. Adjust. Grow.

Final Insights
You are not alone. Many salaried professionals face debt stress.

But very few are brave enough to seek guidance like you did.

You can come out of this. But don’t delay action.

Here’s your action summary:

Write all expenses and loans.

Stop all discretionary spends today.

Take steps to consolidate high-interest debt.

Explore part-time income sources.

Reduce expenses. Increase income.

Talk to your Certified Financial Planner now.

Every small action adds up. This is temporary. You will be free again.

Take action now. Your future self will thank you.

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

Ans: Restructure or Refinance Your Loan
Talk to your bank/financial institution about restructuring:
- Extend tenure to reduce EMI
- Negotiate better interest rate
- Switch to a lender offering lower rates (even 1–2% less helps!)
Goal: Bring EMI down to ?30,000–?35,000 range, freeing up ?10K–?15K monthly.


- Avoid new debt: No fresh EMIs, credit card spend, or buy-now-pay-later schemes.
- Shift to cash-based spending, cut subscriptions, and keep expense tracking tight.