Hello sir, I have tried 3 businesses of various fields but didn’t succeed in any of them either it was because of constraint finance, was not able to build good team, micro managing because of less capital always, or outside circumstances...

Hello sir, namste. Sir, I'm a contractual delivery person working in Bangalore. I have a net debt of around 7.5 lakh rupees which is accumulated by credit cards ~ 3.6 lakh (facing 4.5% interest and other charges monthly), personal loans - 2.9 lakh and ~ 1 lakh from relatives. I feel totally devasted Sir and many times I feel miserable. I have only studied till 10th class and so not a many job roles are available the market. In Zomato , I can hardly save around 20k-25k/ month after cutting all the expenses. Can you please show me a way ahead to clear my Debts ASAP. I want to live a life sir. And should I go with credit card settlement? The charges are so huge that around 12k is increasing each month just from charges. Should I first clear my credit card outstanding and then move towards other loans? And what should I do further sir, what skills can I learn that will serve the market needs in the future? I want to own a car and a house till 30 and have a sustainable business of mines. Please show me the way sir. I really need some expert advice on this. My image has all got dumped accross my family and friends. I didn't used to be like this before. To be Frank with you, I have done mistakes sir, I spent most of the money on drugs ..but now I want and need to change. I have already put a stop. Now I want to erase and write beautifully again. I hope you treat me like your brother

Ans: It's very courageous of you to reach out and share your situation. Acknowledging your past mistakes and showing a willingness to change is the first and most significant step toward a brighter future. Let's explore a practical and comprehensive plan to help you clear your debts and improve your financial situation.

Understanding Your Current Financial Situation
Total Debt: Rs 7.5 lakh

Credit Cards: Rs 3.6 lakh (4.5% monthly interest and other charges)
Personal Loans: Rs 2.9 lakh
Loan from Relatives: Rs 1 lakh
Monthly Savings: Rs 20,000 - Rs 25,000

Immediate Steps to Address Debt
Prioritizing Debts
High-Interest Debt First: Credit card debt should be your top priority due to its high-interest rate. The monthly interest of 4.5% can quickly accumulate, making it crucial to pay this off first.

Personal Loans and Relatives: After addressing credit card debt, focus on personal loans and the amount owed to relatives.

Credit Card Settlement
Contact Your Credit Card Companies: Explain your situation and request a lower interest rate or a settlement plan. Many companies are willing to negotiate if they see you are making a genuine effort to pay off your debt.

Avoid Settlement as a First Option: Settling credit card debt can affect your credit score negatively. It should be considered if negotiations for lower interest rates or payment plans fail.

Creating a Debt Repayment Plan
Step 1: Assess Monthly Expenses
List all essential expenses (rent, food, utilities, etc.).
Identify non-essential expenses and reduce or eliminate them.
Step 2: Allocate Savings to Debt Repayment
Dedicate as much of your monthly savings (Rs 20,000 - Rs 25,000) as possible to paying off your credit card debt.
Use the avalanche method: pay off debts with the highest interest rate first while making minimum payments on other debts.
Step 3: Extra Income
Consider taking on additional delivery shifts or part-time work to increase your income.
Look for freelance or gig opportunities that can be done in your spare time.
Developing Skills for Future Opportunities
Step 1: Identify Marketable Skills
Digital Skills: Basic computer skills, digital marketing, data entry, or social media management are in demand and can be learned online.
Technical Skills: Courses in web development, coding, or app development can open up job opportunities. Platforms like Coursera, Udemy, and Khan Academy offer affordable courses.
Language Skills: Improving English or learning a new language can enhance job prospects.
Step 2: Affordable Learning Resources
Online Courses: Use free or low-cost online courses to build new skills. Websites like Coursera, Udemy, and edX offer courses in various fields.
Local Community Centers: Check for workshops or courses offered by community centers or NGOs in Bangalore.
Step 3: Practical Experience
Internships: Look for internships or volunteer opportunities to gain practical experience.
Networking: Connect with professionals in your desired field through social media platforms like LinkedIn.
Long-Term Financial Goals
Goal 1: Owning a Car
Saving Plan: After clearing your debts, start a savings plan specifically for purchasing a car. Set aside a fixed amount each month.
Consider Pre-Owned: Initially, consider buying a pre-owned car to reduce costs.
Goal 2: Owning a House
Saving and Investing: Start saving for a down payment. Consider mutual funds for long-term growth once you have an emergency fund in place.
Government Schemes: Explore government schemes for first-time homebuyers, which can offer subsidies or lower interest rates.
Goal 3: Starting a Business
Business Plan: Develop a detailed business plan for your mining business. Research the market, competition, and legal requirements.
Small Start: Consider starting small and expanding as you gain experience and financial stability.
Funding: Look for government grants, small business loans, or investors willing to support your business idea.
Additional Tips for Financial Stability
Emergency Fund
Establish an Emergency Fund: Save at least 3-6 months' worth of living expenses in a separate account for emergencies.
Budgeting
Create a Budget: Track your income and expenses to identify areas where you can save more.
Stick to the Budget: Consistently adhere to your budget to avoid unnecessary spending.
Financial Discipline
Avoid High-Interest Debt: After clearing your debts, avoid using credit cards or taking loans unless absolutely necessary.
Regular Review: Regularly review your financial situation and adjust your budget and goals as needed.
Final Insights
Clearing your debts and achieving financial stability is a challenging but achievable goal. Prioritize paying off high-interest debt, such as credit cards, first. Consider negotiating with credit card companies for better terms. Allocate as much of your monthly savings as possible towards debt repayment and look for additional income opportunities.

Invest in learning new skills that are in demand in the market. Utilize online resources and practical experiences to enhance your employability. Set realistic long-term goals like owning a car, a house, and starting a business, and develop a step-by-step plan to achieve them.

Your determination to change and improve your life is admirable. Stay focused, disciplined, and proactive in managing your finances. With consistent effort and careful planning, you can overcome your current challenges and build a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in