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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 01, 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
Harshni Question by Harshni on Jul 01, 2024Hindi
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Income - 30k Monthly rent -14k Emi is 32k with help of my family I am paying. I want to close all emi and pay small amount. Will it be a good option if I take a 1lakh loan for 35% and reduce the monthly emi burden I have gold loan 1.9l Outside loan 65k O/s rent 28000 App loans total o/s 60k I failed to repay few app loans for the past months, cibil got affected and too many loans. No bank is ready to offer any loan. One offer I have is 1l in Bajaj at 35% interest. What should I do and which way works best? Please help me

Ans: I understand your situation is challenging, and you need to find a way to manage your debts effectively. Here are a few steps to help you navigate this financial difficulty:

Assess Your Financial Situation
Income and Expenses:
Monthly Income: Rs. 30,000
Rent: Rs. 14,000
EMI: Rs. 32,000 (with family support)
Gold Loan: Rs. 1.9 lakh
Other Loans: Rs. 65,000
Outstanding Rent: Rs. 28,000
App Loans: Rs. 60,000
Immediate Steps to Take
Avoid High-Interest Loans:

Taking a Rs. 1 lakh loan at 35% interest from Bajaj is very costly and will worsen your financial burden.
Negotiate with Lenders:

Reach out to your existing lenders, explain your situation, and request a restructuring of your loans. They may offer lower EMIs, extended tenure, or a temporary moratorium.
Family Support:

Continue to seek help from family if possible. Consider discussing a temporary increase in their support to ease your immediate burden.
Sell Assets:

If you have any assets that can be sold without significant loss, consider doing so to repay high-interest loans first.
Medium-Term Strategies
Debt Consolidation:

Look for a debt consolidation plan with a lower interest rate. This might be hard given your current credit score, but some non-bank financial companies (NBFCs) offer such services.
Increase Income:

Look for additional income sources, such as part-time work, freelance jobs, or selling unused items.
Financial Counseling:

Consult a Certified Financial Planner (CFP) or a credit counseling agency. They can provide personalized advice and may help negotiate with creditors.
Long-Term Planning
Credit Score Repair:

Once your immediate financial crisis is managed, work on improving your credit score by paying all your dues on time and reducing outstanding debts.
Budgeting:

Create a strict budget to control expenses and prioritize debt repayment.
Final Insights
Taking a high-interest loan to manage current debt can lead to a debt trap. Focus on negotiating with current lenders, seeking family support, and avoiding any additional high-cost loans. Consider selling assets if possible and look for ways to increase your income. Consult a financial counselor for personalized assistance.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
Asked on - Jul 01, 2024 | Answered on Jul 01, 2024
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I have spoken with lenders no negotiation possible. Gold loan has less interest no problem I can take them later. I have to close the app loans and few lenders near my place. To reduce the monthly burden. What can be the possible way? I'll have to learn skill and get some secondary jobs which is definitely not going to help me immediately. Kindly help me with a solution
Ans: Immediate Steps to Close App Loans and Lenders
Prioritize Payments:

Focus on clearing high-interest app loans and local lenders first. This will reduce your overall interest burden.
Family Support:

Request additional temporary financial help from your family. Explain the urgency and your plan to repay once you stabilize.
Sell Unnecessary Assets:

Sell any non-essential items or assets you own. Use the proceeds to clear high-interest debts first.
Local Community Assistance:

Look for local community groups or non-profits that provide financial assistance or short-term loans at lower interest rates.
Temporary Sacrifices:

Consider making temporary lifestyle changes to cut down expenses. Redirect saved money towards paying off loans.
Employer Advance:

Ask your employer for a salary advance or short-term loan. Some companies offer this to employees in financial distress.
Detailed Action Plan
Family Support:

Explain your situation to your family again and request specific amounts to clear app loans and local lenders.
Sell Unnecessary Assets:

Create a list of items you can sell quickly. This could include electronics, furniture, or any other valuables.
Community Assistance:

Research local organizations that might offer financial help. Visit them and explain your situation.
Temporary Lifestyle Changes:

Cut down on non-essential expenses like dining out, subscriptions, or other discretionary spending. Use this money to pay off debts.
Employer Advance:

Discuss your situation with HR or your manager and request a salary advance or loan. Many employers are willing to help employees in distress.
Immediate Income Sources:

Look for quick gigs or part-time work that can provide immediate cash flow. This could be anything from freelancing to temporary jobs.
By following these steps, you can focus on reducing your immediate debt burden without taking on a high-interest loan.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in
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.
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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 22, 2024

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Hi sir i have the loan of 16 lac and income of 54k with monthly emi of 40k how to mangae all???
Ans: Managing a high EMI on a modest income can be challenging. Your current loan of ?16 lakhs with an EMI of ?40,000 on a ?54,000 income requires careful financial planning. Here’s how to manage your finances effectively.

Understanding Your Financial Situation
Income and Expenses
Your monthly income is ?54,000, with an EMI of ?40,000. This leaves you with ?14,000 for all other expenses. This tight margin necessitates a strategic approach.

Loan Details
A loan of ?16 lakhs with a high EMI consumes a significant portion of your income. Evaluating options to reduce the EMI can provide some relief.

Steps to Manage Your Loan and Finances
Budgeting
Track Expenses
Start by tracking all your expenses. Identify areas where you can cut costs. Every rupee saved can help ease your financial burden.

Create a Monthly Budget
Create a detailed budget. Prioritize essential expenses like food, utilities, and transport. Allocate a portion of your income towards savings, even if it's small.

Reducing EMI Burden
Loan Restructuring
Consider restructuring your loan. Extending the loan tenure can reduce the EMI, though it might increase the total interest paid.

Negotiating with Lenders
Talk to your lender about reducing the interest rate. Even a slight reduction can lower your EMI. Lenders may offer better terms based on your repayment history.

Additional Income Sources
Part-Time Jobs
Explore opportunities for part-time work or freelance jobs. This additional income can help cover expenses and reduce reliance on loans.

Monetize Skills
If you have specific skills or hobbies, consider monetizing them. Teaching, consulting, or online gigs can provide extra income.

Managing Expenses
Reduce Non-Essential Spending
Cut down on non-essential expenses like dining out, subscriptions, and luxury items. Focus on saving and reducing debt.

Use Budget-Friendly Alternatives
Opt for budget-friendly alternatives for daily needs. Buying in bulk, using discounts, and choosing generic brands can save money.

Emergency Fund
Building an Emergency Fund
Allocate a small portion of your income to build an emergency fund. This fund can cover unexpected expenses without impacting your EMI payments.

Utilizing Existing Savings
If you have existing savings, consider using a portion to pay down the loan. Reducing the principal can lower your EMI.

Professional Financial Advice
Consulting a Certified Financial Planner
Seek advice from a Certified Financial Planner. They can provide tailored solutions to manage your loan and improve your financial health.

Debt Management Programs
Consider enrolling in a debt management program. These programs can negotiate better terms with lenders and provide structured repayment plans.

Investment Strategies
Systematic Investment Plans (SIPs)
Consider starting a SIP in a mutual fund. Even a small investment can grow over time and provide financial stability.

Benefits of Regular Mutual Funds
Investing through a Mutual Fund Distributor (MFD) with CFP credentials offers guidance and personalized advice, optimizing your investments.

Avoid Direct Mutual Funds
Direct mutual funds have lower expense ratios but lack advisory services. Regular funds through an MFD provide support and better decision-making.

Financial Discipline
Regular Review
Regularly review your financial situation. Adjust your budget and repayment strategy based on your progress and changes in circumstances.

Set Financial Goals
Set short-term and long-term financial goals. Having clear objectives can motivate you to save and manage your expenses better.

Stress Management
Stay Positive
Financial stress can be overwhelming. Stay positive and focused on your goals. Small steps can lead to significant improvements over time.

Seek Support
Talk to family and friends for support. They can provide emotional backing and sometimes practical advice or assistance.

Conclusion
Managing a high EMI on a modest income is challenging but achievable with careful planning. By budgeting wisely, reducing expenses, seeking additional income, and consulting a Certified Financial Planner, you can navigate this period successfully. Regularly review your financial situation and adjust your strategies as needed to ensure long-term stability and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 11, 2024

Asked by Anonymous - Jul 01, 2024Hindi
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With income of 30k I am paying 50k emi monthly. I want to reduce the amount or extend tenure I spoke with lenders not working. So I want to reduce the emi burden and extend tenure. I have option but interest is higher I will have to pay more every month and finish it fast. I have loan offer of 1 lakh at 35% pa
Ans: Reducing EMI Burden and Extending Loan Tenure

Understanding Your Current Situation
Your income is Rs. 30,000, but your monthly EMI is Rs. 50,000.

That's a challenging situation. It’s understandable you want to reduce your EMI burden.

Evaluating Current Loan Options
You've spoken with lenders but have found no success.

The offered loan at 35% per annum is quite high.

Why Reducing EMI is Important
Reducing your EMI is crucial for financial stability. It allows you to manage your expenses better and avoid debt traps.

Extending Loan Tenure
Extending the tenure can lower your monthly EMI. But, it increases the overall interest paid.

Let’s evaluate if it’s beneficial for you.

Higher Interest Rate Concerns
A higher interest rate means paying more in the long run.

It can seem like a quick fix but might not be financially sound.

Assessing Loan Offers
Carefully assess any loan offers, especially those with high interest rates.

A 35% interest rate can lead to significant financial strain.

Certified Financial Planner's Insight
A Certified Financial Planner (CFP) can provide detailed advice.

They can help you understand the long-term impact of your decisions.


Evaluating Your Investment Goals
Define clear investment goals.

Short-term and long-term goals will help in choosing the right mutual funds.

Emergency Fund Creation
Create an emergency fund.

It acts as a financial cushion in case of unforeseen expenses.

Managing Monthly Expenses
Track your monthly expenses closely.

Cut down on unnecessary spending to manage your EMIs better.

Strategic Debt Management
Debt management strategies can help.

Prioritize high-interest loans and plan to pay them off first.

Using SIPs for Investment
Systematic Investment Plans (SIPs) in mutual funds are effective.

They promote disciplined investing and take advantage of rupee cost averaging.

Evaluating Loan Offers with a CFP
A CFP can help you evaluate loan offers.

They can guide you on whether extending tenure or opting for higher interest rates is beneficial.

Avoiding High-Interest Loans
Avoid high-interest loans if possible.

They can lead to more financial stress and debt accumulation.

Alternative Loan Restructuring Options
Discuss alternative restructuring options with your lender.

Sometimes, lenders may offer better terms when approached strategically.

Long-Term Financial Planning
Long-term financial planning is crucial.

A CFP can help you develop a sustainable plan to manage debt and invest wisely.

Understanding the Impact of High EMIs
High EMIs can impact your quality of life.

It’s essential to balance loan repayments with your daily needs.

Exploring Government Schemes
Check if any government schemes can assist with loan restructuring.

Some schemes offer lower interest rates or better terms.

Seeking Professional Advice
Always seek professional advice.

A CFP can provide tailored advice to fit your unique financial situation.

Final Insights
Managing high EMIs with a limited income is challenging.

Carefully assess all loan options, consider investing in mutual funds for better returns, and consult a Certified Financial Planner for personalized advice.

Prioritize creating an emergency fund and managing monthly expenses effectively.

Avoid high-interest loans and explore alternative restructuring options with your lender.

With strategic planning and professional guidance, you can achieve financial stability and reduce your EMI burden over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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