I have personal loan of 15 lac my emi is 25000 how can i reduce my emi

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

Ans: Hello;

You may sale some of your asset to repay the loan.

Except home loan, no other loan is worth it except maybe education loan or some emergency.

Also make sure at NO time the total loan EMIs don't exceed 35-40% of your net monthly income.

Also make sure to have 6 months of regular monthly expenses as emergency fund.

You may seek help of family and friends to repay the loan and return back to them whenever feasible.

Check if restructuring of the loan is possible to lessen EMI burden but lengthen the repayment period.

If possible your spouse may take up some job till the loan is repaid.

While managing personal finances always keep in mind the age old saying, cut your cloth according to your size.

Best wishes;

Ans: We will analyze your current loan EMI and explore solutions.

This will help reduce your EMI burden and also plan for early loan closure.

I will guide you with practical steps and a 360-degree view as a Certified Financial Planner.

Let’s start with your loan and EMI details.

                     

Understanding Your Current Loan and EMI Burden

You are 44 years old and have a personal loan of Rs. 35 lakhs.

Your current EMI is Rs. 67,000 per month.

The loan tenure is long, so EMI stretches over many years.

A high EMI may reduce your monthly savings and financial flexibility.

Personal loans generally carry high-interest rates compared to home loans or other secured loans.

It is important to reduce EMI to improve your monthly cash flow.

At the same time, you want to finish your loan in 5 years, which is a good goal.

Paying off early reduces total interest cost and gives financial freedom faster.

                     

Options to Lower Your EMI Burden

Check if your personal loan interest rate can be reduced by negotiation.

Many lenders offer lower rates on balance transfer or loan restructuring.

Balance transfer to another lender with a lower interest rate can reduce EMI.

Balance transfer usually incurs some processing fee but saves interest long-term.

Refinancing the loan is a common and effective way to reduce EMI.

You can increase the tenure (if lender allows) to reduce EMI but increases total interest.

Since you want to finish in 5 years, longer tenure is not suitable for you.

So, focus on balance transfer or negotiation to get a lower interest rate.

Check if your lender allows partial prepayment without penalty; prepay when possible.

Prepayment reduces principal and future interest, helping lower EMI or tenure.

Consider increasing monthly savings dedicated for loan prepayment.

Avoid taking fresh loans or increasing liabilities until this loan is closed.

Keep emergency fund intact; do not use all savings for loan prepayment.

Monitor your monthly expenses and cut non-essential costs to free cash for prepayment.

Use windfalls like bonuses, tax refunds, or gifts for prepayment.

                     

Planning to Close Loan in 5 Years

To close Rs. 35 lakhs loan in 5 years, you need to pay a higher EMI.

Higher EMI means more financial discipline but fewer years of interest cost.

Since your current EMI is Rs. 67,000, you may need to increase EMI or pay lumpsum prepayments.

Exact EMI depends on interest rate and loan amortization schedule.

To finish early, either increase monthly EMI or do partial prepayments.

Even small additional payments reduce tenure and interest significantly.

Make a realistic budget to see how much more EMI you can afford monthly.

If budget allows, increase EMI gradually every 6 to 12 months to reduce tenure.

Alternatively, prepay whenever possible to cut principal.

Use loan amortization tools available online or ask your lender for new schedules.

Regularly track loan balance and tenure remaining after each payment.

Early repayment helps improve credit score and financial flexibility.

Avoid penalty charges by checking prepayment rules with your lender beforehand.

                     

Impact on Your Monthly Budget and Savings

Reducing EMI or prepaying aggressively will increase your monthly cash outflow temporarily.

You need to balance EMI with other savings and essential expenses.

Make sure you maintain emergency funds and retirement savings.

Avoid compromising insurance or important long-term investments.

Monitor your monthly income and expenses closely for smooth cash flow.

If you have surplus from salary increments, route it towards loan repayment.

Avoid lifestyle inflation that increases expenses during loan repayment.

Use expense tracking tools or apps to keep discipline.

                     

Other Important Financial Considerations

Maintain adequate term insurance to protect family if anything happens.

Check your health insurance coverage to avoid medical emergencies derailing finances.

Avoid new loans or credit card debts while repaying this personal loan.

Build investments parallel to loan repayment for wealth creation.

Use a Certified Financial Planner to review your full financial plan annually.

Rebalance your financial priorities as income and expenses change.

                     

Why Early Loan Repayment Matters

Paying off personal loans early saves significant interest costs.

Personal loan interest rates are high; longer tenure means more interest.

Clearing loan early improves your debt-to-income ratio.

Better credit score helps for future loans like home or car loans.

Early repayment reduces financial stress and improves cash flow.

It allows you to redirect savings towards retirement or children’s education.

Timely closure creates a sense of financial achievement and security.

                     

Final Insights

Your EMI of Rs. 67,000 on Rs. 35 lakh personal loan is a major monthly commitment.

To lower EMI, explore balance transfer or loan restructuring with lower interest rate.

Avoid extending tenure if your goal is to finish loan in 5 years.

Increase monthly EMI or make partial prepayments to finish loan early.

Use windfalls and salary increments for prepayment to reduce interest cost.

Maintain emergency funds and investments while repaying aggressively.

Track loan amortization and review prepayment rules to avoid penalties.

Consult a Certified Financial Planner for personalised review and planning.

This approach balances cash flow, savings, and early loan closure goals.

Discipline and planning will reduce your EMI burden and give financial freedom soon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ans: Your challenges are real. We will explore steps to reduce EMI burden and extend loan tenure. Each bullet below has three line spaces between points. Every sentence is short and clear.

Your Current Financial Snapshot

You earn Rs 70,000 monthly.

You have a home loan of Rs 40 lakhs for 20 years.

Your home loan EMI is Rs 35,000 monthly.

You hold a personal loan of Rs 10 lakhs with EMI of Rs 44,000.

This personal loan has a remaining tenure of 2 years.

You have another personal loan of Rs 10 lakhs with EMI of Rs 43,000.

This loan also has a remaining tenure of 2 years.

You have another personal loan of Rs 24,00,000 taken as an OD drop-down.

Its current interest EMI is Rs 27,000.

Due to full utilisation, EMI is set to increase to around Rs 60,000 next month.

You have Rs 5,00,000 invested in mutual funds.

Your overall debt burden is heavy compared to your income.
Your monthly obligations far exceed your income.
This requires urgent strategy and restructuring.

Understanding the EMI Burden

Your debt EMIs are very high when combined together.

Home loan EMI is moderate relative to your tenure.

Personal loans create short-term burden.

The upcoming higher EMI on the OD facility is alarming.

Many personal loans with short tenures contribute to high EMIs.

Total EMIs are unsustainable on Rs 70,000 income.

Your cash flow is under severe pressure.
You face liquidity issues because repayments exceed income.
There is a clear need to restructure debt.

Analyzing Your Debt Situation

The home loan is for Rs 40 lakhs with long tenure.

Personal loans each of Rs 10 lakhs are for 2 years.

The OD drop-down personal loan is Rs 24,00,000.

The OD facility EMI is set to rise sharply next month.

You have a small mutual fund corpus of Rs 5,00,000.

Your total monthly EMIs, if running together, exceed your income multiple times.

Your situation calls for drastic measures.
It is vital to reduce EMI amounts.
You must extend loan tenures for relief.

Steps to Reduce EMI Burden

Consider restructuring your personal loans immediately.

Talk to your bank about extending loan tenures.

Request restructuring on each personal loan individually.

Ask for tenure extension to reduce monthly payments.

Extend the tenure from 2 years to a longer period.

A longer tenure reduces monthly EMI amounts.

This may increase total interest paid over time.
Still, it eases monthly cash flow stress.
A balance between EMI burden and interest cost is key.

Debt Consolidation Options

Look into debt consolidation with a bank or financial institution.

Consolidate all personal loans into one larger loan.

A single consolidated loan may offer lower EMI.

A longer tenure may be available in consolidation.

Consolidated loans help in simpler monthly payments.

It reduces multiple repayment dates and confusion.

Consider speaking to a Certified Financial Planner about consolidation.
Use their expertise to get favorable terms.
Ensure interest rates are competitive on consolidation.

Negotiating with Lenders

Approach your banks and lenders with your situation.

Explain that your income is constrained and EMIs are too high.

Request a restructuring or extension of tenure on personal loans.

Ask if the rate can be reduced along with the tenure.

Negotiate a moratorium if required in difficult months.

Always ask for clarity on any prepayment charges.

Your aim is to lower the monthly outflow.
Negotiated terms may reduce stress on cash flow.
This dialogue is essential for financial relief.

Option to Use Mutual Fund Investment

You have Rs 5,00,000 in mutual funds.

Consider a partial redemption of these funds if needed.

Redeem some units to prepay high-interest loans.

Use the redeemed funds to lower the OD drop-down burden.

Prepaying can reduce the principal amount immediately.

This helps lower the subsequent EMI amounts.

However, ensure minimal redemption to not lose growth potential.

Mutual funds here act as a safety cushion.
Redeem only if the EMI burden becomes unsustainable.
Balance growth and debt reduction carefully.

Evaluating the Drop-Down OD Facility

The drop-down loan of Rs 24,00,000 is critical.

Its EMI is increasing from Rs 27,000 to Rs 60,000 next month.

This facility is used when limits are fully utilised.

Negotiate with the bank to reset the limits if possible.

Request a lower interest rate or a longer tenure on this facility.

Clarify the terms of utilisation with your bank immediately.

Check for any charges on restructuring this facility.

Managing the OD facility is key to reducing your monthly burden.
Its increased EMI may cause severe cash flow problems.
Act now to negotiate its terms with urgency.

Restructuring Each Personal Loan

For your Rs 10 lakhs personal loan with EMI of Rs 44,000, ask for tenure extension.

Extend the tenure from 2 years to possibly 4 or 5 years.

The EMI will reduce with a longer tenure.

Similarly, for the second Rs 10 lakhs loan with EMI Rs 43,000, seek extension.

Explain your income limitations and request affordable terms.

Consolidate both loans if feasible.

A single loan for Rs 20 lakhs with an extended tenure may be easier to manage.

This restructuring will lower monthly payments.
It may result in higher overall interest, but eases liquidity stress.
Work with a Certified Financial Planner to analyse cost trade-offs.

Improving Cash Flow

Your current outflow is too high relative to Rs 70,000 income.

Reducing EMI is your main target now.

Revisit your household budget.

Identify any non-essential expenses.

Cut down on optional spends immediately.

Allocate any extra cash to debt repayment.

Consider part-time income if possible.

Every Rs saved can help in repaying loans faster.

Your focus is on cash flow improvement.
Being disciplined with expenditure matters greatly here.
Even small savings add up over months.

Long-Term Financial Management and Debt-Free Goal

Lowering EMIs will improve your future cash flow.

The goal is to eventually be free of high debt.

Once personal loans are restructured, work on clearing them.

Aim to clear the consolidated loan early if possible.

Maintain a strict monthly repayment discipline.

After debt is under control, rebuild your mutual funds.

Reinvest any savings from lower EMIs.

Working towards a debt-free goal is essential.
Lower EMIs provide breathing room for future growth.
Your focus should remain on long-term financial health.

Role of a Certified Financial Planner

Engage with a Certified Financial Planner immediately.

They can review your debt structure in detail.

A CFP will suggest the best restructuring plans.

Their advice will ensure you do not fall into more debt traps.

They help assess consolidation options and lender negotiations.

A CFP also guides when to redeem mutual funds.

They will recommend safe, well-managed regular funds.

Their help is crucial for 360-degree financial planning.
Rely on their expertise in times of financial stress.
This can lead to sustainable, long-term recovery.

Alternative Sources of Relief

Consider a personal loan refinancing alternative.

Some lenders offer refinancing at lower interest rates.

Refinancing may extend the total loan tenure.

Lower interest rates can lead to reduced EMIs.

Compare offers from multiple banks and NBFCs.

Read terms carefully with your CFP.

Ensure no hidden charges in refinancing.

Refinancing is another tool to reduce EMIs.
It might provide the relief you require.
Evaluate offers with a clear, analytical approach.

Building a Future Safety Net

Once debt is controlled, build an emergency fund.

Aim for Rs 50,000 to Rs 1,00,000 as a reserve.

This fund covers unexpected expenses.

Do not use this reserve for non-emergency repayments.

Once your debt is managed, increase your savings gradually.

Reinvest savings into mutual funds under professional guidance.

This step ensures long-term financial stability.

Your safety net is crucial for future peace.
It builds confidence and readiness for emergencies.
Every step now builds a better future.

Steps to Increase Loan Tenure

Request your lenders to extend loan tenure on existing loans.

Longer tenure means lower monthly EMI.

Ask for a tenure shift on the home loan if possible.

Focus on extending personal loans first.

Lender negotiations can include extending tenure to 4–5 years.

A longer tenure will ease monthly cash stress.

Confirm any change in interest rates before agreeing.

Document all changes and new terms officially.

Extending tenure may increase total interest, but reduces burden.
This is acceptable when liquidity is urgent.
Work closely with lenders and CFP during this process.

Potential Use of Liquidating Investments

Your mutual fund corpus is currently Rs 5,00,000.

Liquidate a small portion if absolutely required.

Use redemptions to lower the highest EMI debt.

Ensure you redeem only a part to avoid losing growth potential.

Check for any tax impact on the redemption.

Weigh the redemption impact on future returns carefully.

This fund can become an emergency source if managed right.

Redeeming too much may hurt future wealth growth.

Use this option as a last resort.
It is a trade-off between immediate relief and long-term growth.
Plan such redemptions with your CFP.

Improving Your Credit Profile

Timely repayments improve your credit score.

A good credit score helps in refinancing applications.

It may lead to better interest rates later.

Ensure no defaults or late payments.

Any debt restructuring should be reported positively.

Your payment history must remain clean.

This helps your future negotiations with lenders.

A better credit score offers more financial freedom.

Your credit profile is key for future borrowing.
Keep it strong through disciplined repayments.
This is a cornerstone for long-term financial health.

Practical Tips for Day-to-Day Management

Record every expense meticulously in a daily diary.

Use simple tools like pen and paper or a basic phone app.

Monitor your budget weekly for accountability.

Identify any unnecessary expense immediately.

Adjust your spending to ensure a surplus exists.

Use extra cash to repay debt faster.

Review your budget every month with your family.

Explain your financial goals to your household.

These habits strengthen discipline and financial control.
Every small saving contributes to debt reduction.
Such steps build future financial resilience.

Psychological and Emotional Aspects

It is normal to feel stressed in high debt.

Accept that you are in a tough phase.

Do not hide your stress from trusted ones.

Open communication with family helps in decision making.

Seek emotional support from friends or family.

Consider counselling if stress becomes unmanageable.

A balanced mind aids clear financial decisions.

Remember, every struggle builds future strength.

Your emotional well-being is essential for recovery.
Stay positive and focused on the plan.
Your determination is key to overcoming obstacles.

Revisiting Debt and Expenses Monthly

Monitor your debt repayment progress every month.

Check if restructuring plans are working as planned.

Revisit your lender negotiations monthly if needed.

Track every revised EMI carefully.

Use a simple ledger or mobile app to manage this.

Review your overall expenses in detail each month.

Adjust budgets for any unforeseen changes.

Celebrate small victories as debt reduces.

Monitoring progress builds confidence.
Keep reviewing to stay on track.
This discipline brings long-term success.

A 360-Degree Financial Strategy

Understand that reducing EMI is only part of the solution.

Focus on both debt restructuring and cash flow improvement.

Work on a comprehensive budget that covers all expenses.

Plan for both short-term relief and long-term stability.

Build an emergency fund once EMI is under control.

Invest any surplus money into stable, active funds.

Do not use index funds that lack active management.

Maintain discipline in both spending and repaying debt.

This approach gives a holistic view.
It covers every aspect of your financial journey.
A 360-degree plan saves you in the long run.

Interaction with Lenders and CFP

Set up meetings with all your lenders immediately.

List all loan details and current EMI burdens.

Present your case clearly and calmly.

A Certified Financial Planner will support your discussions.

They can frame your situation professionally.

Their experience may secure better terms for you.

Lenders respect a well-documented plan.

This increases the chances of tenure extension.

Your strategy must be communicated well.
With expert help, negotiations may improve.
Trust in the CFP’s guidance for a fair deal.

Post-Restructuring: Planning for Financial Recovery

Once your EMI burden is reduced, plan for the future.

Focus on increasing your monthly cash flow gradually.

Redirect saved money to build emergency funds.

Set aside Rs 5,000 to Rs 10,000 monthly for emergencies.

Once secure, increase your mutual fund investments.

Continue with regular plans under CFP supervision.

Do not jump into high-risk or index funds.

Active funds managed by professionals offer stability.

Recovering from debt clears the path to growth.
Focus on rebuilding wealth step by step.
Your disciplined approach is your strength.

Future Income Growth Strategies

Explore options to increase your income safely.

Consider part-time work or freelance tasks.

Use your skills to earn extra money on weekends.

A small increase in monthly income helps repay loans faster.

Talk to your employer about incremental growth.

Improve your skills to earn better opportunities later.

A steady income increase relieves long-term debt stress.

Use any extra income strictly for debt repayment.

Every extra rupee matters in stressful times.
Increasing income is a long-term goal.
This additional income improves overall cash flow.

Reviewing the Tenor Extension Effect

Extending tenures usually lowers monthly EMI amounts.

A longer tenure spreads the repayment over many months.

This gives you breathing room in your monthly budget.

However, total interest may rise with longer tenure.

Balance low EMI with acceptable total interest costs.

Work with your CFP to find the best tenor extension.

Compare different proposals from various banks.

Analyze long-term impacts before final decision.

Longer tenures offer immediate relief.
They must be carefully compared against extra interest.
A balanced approach is necessary.

Impact on Your Investment Strategy

High EMIs force you to pull back from investing.

Once EMI burden is reduced, resume systematic investments.

Continue your current regular plans with CFP.

Active funds provide market protection and growth.

Avoid using index funds as they have no active management.

Stay clear of direct funds because no ongoing review exists.

Maintain a habit of monthly SIPs to build wealth gradually.

Investment stability comes after cash flow improves.

Your investments must follow cash flow recovery.
They then become part of long-term wealth building.
Keep disciplined and invest consistently.

Revising Your Financial Priorities

Prioritize reducing debts over starting new investments.

A debt-free strategy is the foundation of wealth.

Focus on restructuring before adding new liabilities.

Once stable, then consider growth-oriented plans.

Ensure all decisions are made with a CFP’s advice.

This prioritization improves future financial confidence.

Arrange your finances into clear short and long-term goals.

Every rupee saved builds a bridge to future wealth.

Your current action plan must be debt-first.
It ensures survival and future progress.
Planning ahead saves many future troubles.

Detailed Action Plan Summary

Immediately approach lenders for restructuring personal loans.

Request extending tenure on each high-interest personal loan.

Negotiate the drop-down OD facility terms urgently.

Use any extra funds or bonus to lower high-interest debt.

Maintain detailed records of all lender communications.

Consult a Certified Financial Planner for each negotiation.

Consider consolidating personal loans into one larger loan.

Refinance if lower interest rates and extended tenure can be secured.

Evaluate your mutual fund holdings; redeem minimally if needed.

Redeem only a small amount to reduce the highest EMI loan.

Ensure redemption aligns with overall wealth goals.

Increase your emergency fund slowly post-restructuring.

Avoid unnecessary expenses until debt burden is manageable.

Look for extra income opportunities to boost repayment capacity.

Build a strict monthly budget and review it weekly.

Improve your credit score through timely repayments.

Use part of any extra income solely for debt reduction.

Maintain health insurance and minimal necessary expenses strictly.

Avoid any new loans or credit card debts.

Keep a close record of spending and savings each month.

Your detailed plan must include every step in one timeline.
It must be followed until you are free of debt.
This plan builds discipline and long-term stability.

Monitoring Progress and Adjustments

Set a monthly meeting with yourself or a trusted family member.

Check your expense ledger and repayment records regularly.

Update your CFP on any changes in income or expenses.

Assess the impact of tenure extensions on your monthly budget.

Calculate improvements in your cash flow each month.

Revisit your negotiation results with each lender.

Adjust your spending plan if there are unexpected changes.

Celebrate any month of lower EMI burdens and positive cash flow.

These reviews help in staying committed to the plan.

Regular monitoring ensures you are on track.
It also gives insights for further corrections.
Adaptability is key in managing finances.

Emotional and Lifestyle Considerations

Your present burden is stressful but solvable.

Stress may affect decision making and health.

Communicate openly with your family about progress.

Emotional support is vital during financial restructuring.

Maintain a simple lifestyle until debts are under control.

Stay focused on long-term financial freedom.

Remember, discipline now eases future difficulties.

Slow, steady progress is better than quick fixes.

Your emotional well-being directly affects your financial decisions.
Ensure a calm mind to handle negotiations.
Family support gives strength in such times.

Future Vision After Debt Reduction

Once EMIs are reduced, plan for wealth creation.

Rebuild your mutual fund investment with steady SIPs.

Keep all investment choices under regular plan options.

Engage with a CFP for market opportunities that suit you.

Avoid direct funds as they require rigorous self-review.

Stick with actively managed funds that give consistent returns.

Plan to build an emergency fund robustly after clearing debt.

With lower debt, you can enjoy a better quality of life.

This future vision includes both debt-free living and steady growth.

Your long-term plan must balance debt reduction and wealth creation.
Only clear finances allow you to invest safely.
This transition brings lasting financial peace.

Final Insights

Your current financial stress is significant.
The high EMI burden needs prompt action.
Restructure personal loans and extend tenures.
Negotiate urgently with your lenders.
Consolidation and refinancing are critical options.
Use a small part of your mutual funds if needed.
Focus on reducing the OD facility's high EMI.
Engage with a Certified Financial Planner for clear guidance.
Monitor and adjust your budget strictly.
Increase income with safe part-time jobs.
Build an emergency fund for future security.
Reduce non-essential expenses to manage cash flow.
This 360-degree strategy will reduce your EMIs and ease stress.
Long-term planning now leads to a stable future.
Stay disciplined, seek professional help, and take every step with care.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Dear Sir,

Thx for sharing ur situation openly. I knw its stressful when salary is 45k but EMI is 70k+ (car + bike + 3 personal loans + 6 credit cards). U r clearly paying more than u earn, so savings feel impossible.

???? Current prob

Salary: ?45,000

EMI total: ~?70,000

Credit cards: ~?3 L outstanding (very high interest)

Net result: every month shortfall

???? Suggested approach

1. Borrow smartly from family (short-term relief)

If possible, borrow a small amount from parents/relatives at zero or very low interest to clear highest interest debt first (credit cards).

This gives breathing space, reduces interest outflow, and lowers monthly EMI.

2. Consolidate remaining loans

Combine 2–3 personal loans into one longer-term loan at lower rate → smaller monthly EMI.

Avoid taking fresh credit cards or loans now.

3. Stop credit card bleeding

Don’t revolve balances. Use cash/UPI only.

If consolidation not possible, use minimum due + family loan to clear cards gradually.

4. Cut expenses wherever possible

Track spending closely (shopping, eating out, subscriptions).

Every ?2–3k saved goes to paying off debt faster.

5. Optional: Sell / re-evaluate assets

If u have both car + bike, consider selling one → EMI reduces, some loans closed.

? Summary

Right now, ur priority must be survival and debt reduction, not savings. Best approach:

Borrow from parents/relatives for high-interest debt → immediate relief

Consolidate loans → reduce monthly EMI

Cut expenses → redirect funds to debt

Avoid new borrowing till situation stabilizes

Once debt burden is under control, only then can u start small savings for future.

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
www.alenova.in