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Ramalingam

Ramalingam Kalirajan  |7185 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 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
Asked by Anonymous - Nov 03, 2023Hindi
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Hi Sir/maam, due to highly unavoidable reasons I am in a debt of 63 lakhs. I am a corporate employee with 1 lakh take home salary. This debt is only growing with each passing month. Request you to please guide me on how to come out of this debt trap.

Ans: Managing a significant debt can be challenging, but with a structured plan, it's possible to get back on track. Here's a brief guide:

Assess Your Debt: List all debts, their interest rates, and monthly payments. Prioritize high-interest debts.
Budgeting: Create a strict monthly budget to track income and expenses. Cut unnecessary expenses and allocate more to debt repayment.
Debt Repayment Strategy:
Snowball Method: Pay off the smallest debts first to build momentum.
Avalanche Method: Focus on high-interest debts first to minimize interest payments.
Increase Income: Consider part-time jobs, freelancing, or selling assets to increase income.
Negotiate with Creditors: Contact creditors to negotiate lower interest rates or a repayment plan.
Seek Professional Help: Consider consulting a credit counselor or financial advisor for personalized advice and debt management strategies.
Focus on reducing expenses, increasing income, and prioritizing debt repayment to gradually reduce and eliminate the debt. Stay committed and disciplined in following the plan.
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  |7185 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 04, 2024

Asked by Anonymous - May 04, 2024Hindi
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Dear Sir, I am a 31 year old married man.I am in a huge debt trap of multiple loans plus credit card mounting around 9 lakhs. I work in MNC company earning 70k per month. Please advise or suggest if I can come out of this.
Ans: I understand your concern about being in a debt trap, but there are steps you can take to address the situation and work towards financial stability:

Assess Your Debt: Start by listing out all your debts, including the outstanding amounts, interest rates, and minimum monthly payments. This will give you a clear picture of your financial situation.
Create a Budget: Develop a detailed budget that outlines your monthly income and expenses. Identify areas where you can cut back on spending to free up more money to put towards debt repayment.
Prioritize Debt Repayment: Focus on paying off high-interest debt first, such as credit card debt. Consider using the debt avalanche or debt snowball method to systematically tackle your debts.
Negotiate with Creditors: Reach out to your creditors to discuss repayment options. They may be willing to negotiate lower interest rates, waive fees, or offer a repayment plan that fits your budget.
Explore Debt Consolidation: Consolidating your debts into a single loan with a lower interest rate can make it easier to manage and potentially reduce your overall interest costs. However, be cautious and carefully evaluate the terms and fees associated with any consolidation offer.
Increase Your Income: Look for opportunities to increase your income, such as taking on a part-time job, freelancing, or seeking a higher-paying position within your company.
Seek Professional Help: If you're feeling overwhelmed or unsure about how to proceed, consider seeking assistance from a financial counselor or debt relief agency. They can provide guidance and support tailored to your specific situation.
Avoid Taking on New Debt: While you're working to pay off your existing debt, avoid taking on any new debt if possible. Stick to your budget and focus on living within your means.
It may take time and discipline, but with a solid plan and commitment to debt repayment, you can overcome your debt challenges and regain control of your finances. Remember to be patient with yourself and celebrate small victories along the way.

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Asked by Anonymous - Sep 09, 2024Hindi
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Hi, Shekhar I have thirty years of expertise as an engineering sales specialist, and I'm in perfect shape. I was sent to the US headquarters of a US-based company after working in India and the Middle East. I've worked for this company for twenty years. Although my work at the head office is very minuscule in comparison to what I did in India and the Middle East, the management values my knowledge and expertise in the oil and gas industry. It appears that I have no prospect of growing. My subordinates have received promotions, while I have been disregarded for the past two years. My old aged parents and my entire family are in India. I requested to be sent back to India since there was no challenge for an individual. My mom's health is critical and I want to return for her. However, as you know, some friends and relatives say, I shouldn't make a decision in haste with emotions. At one side, I am appreciative of the support of my management when I was in India to look after my mother, I also feel that they should be little sensitive to my situation and allow me to return to my family without losing the job. If nothing works, I will have to return anyway and start a business. I don't have a blueprint for the business right now but I am inspired by the startups in India. I also have some unique ideas and with strong reputation among the customers in India & The Middle East, I can take some risk. What is your opinion, should I resign and return to India considering my family needs me here and there is no bigger reason that that?
Ans: Your situation is complex, and it’s admirable that you’re balancing your family’s needs with your career considerations. This is a pivotal decision that affects not only your professional life but also your emotional well-being. Your mother’s health and being there for your family during such a critical time are legitimate priorities. If you feel your presence in India is more important than continuing in a job where you lack challenges or growth opportunities, it’s natural to prioritize your family. While leaving a stable job is a big decision, your family’s needs and your personal fulfillment are crucial. I believe if your mother’s health requires immediate attention, being present for her and your family will bring emotional satisfaction that outweighs professional considerations and if your company cannot accommodate your request to return to India, resigning and focusing on starting a business could be a viable path. You have the expertise, reputation, and network to make it work. However, before making the leap, begin researching and outlining your business ideas now, even while still in your current role. This preparation will provide you with clarity and confidence should you decide to resign. Remember, this is a decision to make with careful thought, not haste. Focus on what aligns with your values and priorities to ensure you find peace and purpose in your choice.

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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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