Jobless with high EMIs and loan app harassment: How to cope?

Ans: Losing a job and facing debt can be overwhelming. It is important to act swiftly to manage your financial situation.

Assess Your Financial Situation
List All Debts:

EMI of Rs. 35,000 per month.
Loans from various apps like Paytm and MoneyView.
Prioritize Debts:

Identify which debts have the highest interest rates.
Focus on these high-interest loans first.
Create a Budget
Calculate Monthly Expenses:

List essential expenses (rent, utilities, groceries).
Identify non-essential expenses you can cut.
Allocate Funds:

Ensure you cover essential expenses first.
Allocate remaining funds towards debt repayment.
Communicate with Lenders
Contact Loan Providers:

Explain your job loss situation.
Request for a temporary reduction or deferment in EMI payments.
Negotiate Repayment Terms:

Ask for extended repayment periods.
Request for lower interest rates if possible.
Seek Professional Help
Certified Financial Planner:

Consult a Certified Financial Planner for personalized advice.
They can help you create a debt management plan.
Credit Counseling Services:

Consider reaching out to credit counseling services.
They can negotiate with creditors on your behalf.
Increase Income Sources
Look for Temporary Work:

Consider part-time or freelance work.
Explore gig economy jobs like food delivery or ride-sharing.
Sell Unnecessary Assets:

Sell items you no longer need.
Use the proceeds to pay off debts.
Emergency Measures
Emergency Fund:

If you have an emergency fund, use it to cover essential expenses.
Avoid depleting it completely, keep some funds for unforeseen emergencies.
Friends and Family:

Consider borrowing from trusted friends or family.
Ensure you create a clear repayment plan to avoid misunderstandings.
Legal and Supportive Measures
Understand Your Rights:

Familiarize yourself with the laws regarding debt collection.
Loan apps must follow legal protocols; report any harassment.
Emotional Support:

Seek support from friends, family, or support groups.
Managing stress and mental health is crucial during this time.
Final Insights
Facing job loss and debt can be daunting. Take immediate steps to manage your finances. Prioritize essential expenses and debt repayment. Communicate with lenders and seek professional help. Look for temporary income sources and consider selling unnecessary assets. Protect your mental health and seek support from loved ones. With a strategic approach, you can navigate this difficult period and regain financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in