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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 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

Asked by Anonymous - Jul 10, 2025Hindi

Im 31 years old women, getting married soon, i have mortage loan runing from 2 years worth 14 lakhs and my whole salary go into EMI, now i have better salary where i can save 10k per month but, due to marriage we are taking topup loan for more money for expenses and my salary will be going into EMIs and my parents have an house on which loan is running, we have few credit cards in full limit used and few personal loans worth 10 lakhs , i bit stressed about my parents and my future , i have a sister who is in 1st year now and educational costs are at hype. Please suggest

Ans: Thanks for sharing your situation so openly. It shows your courage and commitment. You are already thinking of your family’s and your future security. That’s a very good start. Managing multiple loans, marriage expenses, and family needs together can feel heavy. But you can come out stronger by planning carefully. Here’s a detailed approach to reduce stress and get control over your finances.

» Assessing Your Financial Snapshot

– You are 31 and getting married soon.
– Your existing mortgage loan has Rs. 14 lakhs outstanding.
– Your old salary went entirely into paying this EMI.
– You have better salary now, freeing Rs. 10,000 per month.
– But you plan a top-up loan for marriage expenses.
– Your parents have a home loan ongoing.
– Credit cards are maxed out, adding big interest burden.
– Personal loans of around Rs. 10 lakhs exist.
– You have a sister in 1st year of college.
– Rising educational costs add more pressure.

This shows a heavy debt situation needing an urgent reset.

» Don’t Take More Loans for Marriage

– It’s very risky to take a top-up loan for marriage.
– It adds to your existing EMI burden.
– Marriage celebrations can be done modestly.
– Focus on rituals, not big parties or costly arrangements.
– Save money by having small gatherings or temple ceremonies.
– Borrowing more now will lock your future income.
– Delaying expensive celebrations is better than increasing stress.

Keep expenses minimal so you don’t get into a debt trap.

» Take Control of Credit Card Debts

– Credit card debt charges 36%–45% yearly interest.
– Paying only minimum keeps you trapped in endless payments.
– First, stop using credit cards immediately.
– Pay them off one by one using debt avalanche or snowball method.
– Avalanche: pay highest-interest card first.
– Snowball: pay smallest outstanding first.
– Choose what suits you emotionally.
– Any bonus, gift, or extra income should first go to clear cards.
– Avoid personal loans to pay credit cards; it only shifts the problem.
– Don’t use balance transfers as they add hidden charges.

Become credit card debt-free as top priority.

» Rework on Existing Loans

– Talk to your mortgage lender.
– Negotiate for lower interest or longer tenure.
– Consolidate high-interest loans into one lower-interest loan if possible.
– Avoid new personal loans; they worsen your EMI burden.
– For parents’ house loan, see if they can refinance.
– If family income sources are there, share EMI burden among members.
– Keep EMIs to max 35% of your combined income.
– Anything beyond that risks your lifestyle and future savings.

Avoid adding EMIs even if your salary increases in future.

» Build Emergency Savings

– You must have Rs. 1.5–2 lakh as emergency fund.
– This covers 3 months of basic family expenses.
– Build it in a bank RD or sweep-in FD.
– This fund prevents future debts during crises.
– Prioritise this after clearing credit cards.
– Continue even if you save only Rs. 2,000 monthly initially.

Emergency fund gives confidence and stability during tough times.

» Plan Your Sister’s Education Smartly

– Explore scholarships, education loans in her name, not yours.
– Education loans have lower rates and long tenures.
– They don’t burden your immediate cash flow much.
– Colleges offer merit-based or need-based scholarships.
– Motivate your sister to perform well to earn discounts.
– Don’t sacrifice your retirement or life goals for education costs.
– Support her emotionally and guide her choices.

Keep education separate from personal debt obligations.

» Reduce Lifestyle Expenses

– For next 3 years, live frugally.
– Cut outings, avoid luxury items, use public transport where possible.
– Make home-cooked meals, avoid online orders.
– Buy only essentials, skip brand-conscious buying.
– Save every rupee to clear debts faster.
– Track expenses on a notebook or free app daily.

Lifestyle changes compound into big savings over time.

» Use Your New Salary Raise Wisely

– Don’t inflate lifestyle with your increased salary.
– Channel Rs. 10,000/month entirely to pay off credit cards.
– Once cards are cleared, use same amount to pay personal loans faster.
– Once loans clear, start SIPs for your future goals.
– This keeps momentum going and avoids income wastage.

Avoid new loans thinking you can now “afford” more EMIs.

» Don’t Depend on Marriage Gifts or Loans

– Marriage gifts from relatives are unpredictable.
– Don’t plan big expenses expecting gifts to fund them.
– Same goes for informal family loans, which add obligations.
– Keep wedding expenses within what you can pay with current savings.

Simple weddings reduce financial and emotional stress.

» Importance of Insurance

– Buy term insurance worth Rs. 50 lakhs immediately.
– You are the earning member. Family depends on you.
– Don’t take insurance-cum-investment plans.
– Take separate health insurance covering you and your future spouse.
– Without insurance, one hospitalisation can push you back into debts.
– Insurance is cheaper when you are young.

Term and health insurance give peace of mind and stability.

» Avoid Index and Direct Funds

– You mentioned investing only Rs. 10,000/month.
– When you start investing later, avoid index funds.
– Index funds lack active risk management during market fall.
– Active funds have fund managers who adjust portfolio for better safety.
– Direct funds don’t offer human advice or monitoring.
– Investing through regular funds with Certified Financial Planner ensures guidance.
– This guidance prevents panic selling and wrong decisions.

This discipline is crucial for long-term success.

» Set Financial Goals for Next 5 Years

– Year 1–2: Clear credit card and personal loans.
– Year 3: Build emergency fund of Rs. 2 lakhs.
– Year 4: Start Rs. 5,000 SIP towards retirement.
– Year 5: Increase SIPs to Rs. 10,000/month.
– Throughout: Avoid taking any new loans.

Goals give direction and remove confusion.

» Involve Future Spouse in Planning

– Share your exact financial position honestly before marriage.
– Discuss your debts, liabilities, and your plan to resolve them.
– Jointly decide wedding budget to avoid fights later.
– Fix roles for who pays which bills post marriage.
– Maintain transparency about income and expenses.
– This ensures trust and strengthens your relationship.

A shared financial plan is foundation for a strong marriage.

» Focus on Mental Health

– Debt stress can affect your confidence and health.
– Talk to friends or family to vent worries.
– Practice meditation or yoga.
– Focus on one step at a time.
– Celebrate small victories like paying off one card or loan.

Your mental health is as important as money.

» Stay Disciplined After Marriage

– Don’t upgrade lifestyle to impress others.
– Don’t take personal loans for furniture, jewellery, or honeymoon.
– Save first, spend later should be the mantra.
– Continue tracking expenses even when life gets busy.
– Fix monthly review meetings with your spouse on finances.

Financial discipline builds lasting peace and security.

» Seek Professional Guidance

– Consider hiring a Certified Financial Planner.
– They will create a realistic, step-by-step debt payoff plan.
– They can guide investment options after debts clear.
– Regular plans through MFDs with CFP credentials give better results.
– Avoid direct funds and index funds to get proper handholding.

Professional advice saves time, mistakes, and money.

» Finally

– You’re brave for thinking of your family’s and your future needs.
– Say no to top-up loans for marriage.
– Prioritise clearing credit card and personal loans.
– Build emergency fund next.
– Plan investments only after debts clear.
– Maintain transparency with your spouse.
– Avoid index funds and direct plans later.
– Stay patient, disciplined and keep focus.

You can turn this around with steady steps.

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.