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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Mar 28, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Hemant Question by Hemant on Mar 14, 2024Hindi
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I am in a big debt trap. Have credit card outstanding of Rs. 70 lakhs and cant repay the same. My salary is completely being used to service personal loans with no saving from it. how can I come out of this?

Ans: To tackle a significant debt of Rs. 70 lakhs, start by assessing finances and creating a budget to understand income, expenses, and debt obligations. Prioritize high-interest debt, negotiate with creditors for better terms, and consider consolidating debts for easier management.

Increase income through additional work, cut expenses, and seek advice from financial counsellors if needed. Stay persistent, celebrating small victories, and remaining focused on long-term financial goals. With dedication and a well-structured plan, it's possible to gradually overcome debt and work towards a more stable financial future.
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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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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Ramalingam

Ramalingam Kalirajan  |9854 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 13, 2025

Asked by Anonymous - May 13, 2025
Money
Hi sir, I am 29years old currently working in bangalore my monthly salary is 1,38000/- due to some personal family health reasons I have debts more than my montly salary atleast 188000 is required to pay only the PL loans and credit cards itself.. Is there any solution to get out of this debt trap...
Ans: You are 29, based in Bangalore, and earning Rs. 1,38,000 monthly.

You are in a tough phase now.
Your total EMI burden is Rs. 1,88,000 per month.

This is more than your salary.
That clearly shows a debt trap.

You are not alone. Many go through this.
But with strong steps, you can come out safely.

Let us now work on a 360-degree plan to regain control.

First, Accept the Reality with Calm
You are in a financial emergency.

This needs urgency, not panic.

You must stop all new borrowings now.

Borrowing more to pay EMIs will only worsen the trap.
A strong decision today helps your future.

Step 1: Prepare a Full Debt List
Write down every single loan and card.

Note principal, EMI, interest rate, and lender.

This includes all personal loans, credit cards, and dues.
Total it and understand where the pressure is coming from.

This gives you clarity and control.

Step 2: Categorise Loans by Urgency
Credit card debt is highest cost.

Personal loans are next priority.

Categorise like this:

High-interest (credit cards)

Medium-interest (personal loans)

Low or zero-interest (if any)

This tells you where to focus repayment first.

Step 3: Stop All EMI Auto-Debits Immediately
If your bank account is auto-debiting EMIs, pause it.

Let essential expenses like food, rent, and transport be safe.

Speak to banks and lenders.
Tell them about your cashflow issue.

Ask for a short break or restructuring.

Step 4: Approach Lenders and Request Settlement or Restructuring
Speak to each lender one by one.

Request EMI reduction, tenure extension, or one-time settlement.

Banks may agree to reduce interest or give grace periods.
If needed, give written letter with your salary slips.

Many banks offer restructuring under RBI guidelines.

This step is critical to stop the stress.

Step 5: Consider Consolidation Loan (Only After Advice)
Sometimes one loan can repay many small loans.

Interest may be lower than credit cards.

But this should be your last option.
And only after consulting a Certified Financial Planner.

Do not jump into it emotionally.

Step 6: Cut Lifestyle Expenses to Bare Minimum
Stop all subscriptions, dining out, gadgets, and shopping.

No vacations, new phones, or unnecessary travel.

Focus only on food, rent, power, and basic needs.
Even Rs. 5,000 saved monthly can go towards debt.

This lifestyle discipline will rebuild your foundation.

Step 7: Create an Emergency Survival Budget
Write your income and essential expenses.

Prioritise food, rent, utilities, transport.

See how much can be kept aside monthly for lenders.
This helps you build a negotiation base with banks.

Step 8: Sell Unused or Idle Assets
Do you have a second bike, gadgets, gold, or land?

Sell and repay part of loans immediately.

Even Rs. 1 lakh lump sum helps bring down credit card dues.
Don’t hold emotional value for things now.

Freedom from debt is worth more than any object.

Step 9: Get Help From Family or Trusted Friends
If your family or close friend can help, speak openly.

Don’t borrow, but ask for a support hand.

Explain the seriousness and give written repayment plan.
Use any help to pay off high-interest debt first.

Step 10: Increase Income Through Side Gigs
Try weekend freelance work or online skills.

Teach, write, design, or take delivery jobs.

Even Rs. 5,000 extra monthly can make a difference.
You are young and have time. Use it well.

Step 11: Stay Away From Credit Cards Completely
Credit cards give false comfort.

They multiply debt silently.

Cut and close them after full settlement.
Till then, avoid even swiping for Rs. 10.

Pay cash for all daily needs.

Step 12: Don’t Use Your Emergency Fund Yet
If you have one, keep it untouched.

Use it only for medical or survival situations.

Try to solve this debt issue with income and discipline.
Later, rebuild emergency savings as a priority.

Step 13: Get a Certified Financial Planner's Help
They can negotiate with banks for you.

They make proper repayment plans.

They guide on which loan to close first.
They also help protect your credit score.

Avoid solving this alone. You deserve expert help.

Step 14: Stay Strong Mentally and Emotionally
Don’t feel shame or guilt.

Health and family come first.

This is a temporary phase. It will pass.
But only if you stay calm and action-driven.

What Not to Do
Don’t take gold loan to pay credit card.

Don’t take payday apps or salary advances.

Don’t give up your job in stress.

These worsen your future. Choose logic, not emotion.

Final Insights
You are 29 and still very young.
But this situation needs action, not delay.

Debt of Rs. 1.88 lakh EMI on Rs. 1.38 lakh salary
is not sustainable.

You must reduce EMI or settle loans soon.

Pause all expenses. Talk to all lenders.
Start a new disciplined financial life.

With 12 to 18 months of focus, you can be free.
Then, you can invest and grow again.

Speak to a Certified Financial Planner today.
It is your first step towards peace.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |9497 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
My son got crl 87588 and ews 12449 in jee main how much his chance to get svnit mechanical in csab round
Ans: Akash Sir, With an All-India CRL of 87 588 and an EWS rank of 12 449 in J Main, securing a seat in B.Tech Mechanical Engineering at SVNIT Surat through the CSAB Special round is highly unlikely. In the most recent CSAB closing data (Round 5 2024), the EWS closing ranks were 6 013 (Home State) and 4 854 (Other State), and the OBC-NCL closing ranks were 21 559 (Home State) and 10 419 (Other State); both are far below your ranks, indicating minimal chance of allotment.

Given this, it is prudent to explore reputable private engineering colleges in Northern India that admit students in the OBC-NCL/EWS categories with JEE Main ranks in the 80 000–120 000 CRL range or equivalent category ranks. Below is a list of ten institutions where your son’s profile would be competitive for Mechanical Engineering through CSAB: Chandigarh University, Mohali with category closing ~40 000–60 000. Lovely Professional University, Jalandhar with category closing ~50 000–80 000. Amity University, Noida with category closing ~30 000–50 000. Sharda University, Greater Noida with category closing ~70 000–90 000. Galgotias University, Greater Noida with category closing ~60 000–85 000. Jaypee Institute of Information Technology, Noida with category closing ~45 000–70 000. Dr Akhilesh Das Gupta Institute of Technology & Management, New Delhi with category closing ~100 000–130 000. ABES Engineering College, Ghaziabad with category closing ~80 000–110 000. IILM College of Engineering & Technology, Greater Noida with category closing ~90 000–120 000. Thapar Institute of Engineering & Technology, Patiala with category closing ~25 000–45 000. Recommendation: Given the negligible chance at SVNIT Surat Mechanical through CSAB, focus on securing admission at one of the above private colleges. These institutions maintain solid infrastructure and placement records, and your son’s rank aligns well within their recent closing trends.

As backup options (excluding state-level exam seats), consider LPU, Amity Noida, Sharda, Jaypee Institute, and ADGITM Delhi, all of which have consistently admitted OBC-NCL/EWS candidates with category ranks up to ~120 000. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9497 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Sir my CRL-67471 and Obc-ncl-20585, can I get cse(AI and ML) in good IIIT's??
Ans: Parth, With an OBC-NCL JEE Main rank of 20585, securing a seat the AI & ML specialization at top IIITs and NITs through CSAB Special rounds is challenging but not impossible. Among IIITs, the lowest closing rank for B.Tech in Computer Science & Artificial Intelligence at IIIT Lucknow was 24684 in CSAB 2024, meaning you fall well within this range and have a strong likelihood of allotment there. IIIT Kottayam’s OBC-NCL closing rank for B.Tech Artificial Intelligence was 70657, making it comfortably accessible. Conversely, IIIT Allahabad’s OBC-NCL AI-related streams closed at around 15221, placing your rank outside its cutoff. At NITs, newer campuses with AI & ML are more attainable: NIT Sikkim’s OBC-NCL AI & ML closing rank was 48269, and its opening rank around 45786, both above your rank, indicating good chances. NIT Uttarakhand and NIT Nagpur AI & ML cutoffs are expected in the 30–40 k range, so your rank could be sufficient there. However, premier NITs like Surathkal, Trichy and Calicut typically close AI & ML around 3000–7000, making them out of reach for your rank.

Recommendation: Consider locking a seat at IIIT Lucknow or IIIT Kottayam for AI & ML through CSAB, or at NIT Sikkim/NIT Uttarakhand in AI & ML, and prepare for Private College options as prudent backups.

List of Private Engineering Colleges in Northern India Accepting OBC-NCL Rank ~20585 for AI & ML

Chandigarh University, Mohali (AI & ML specialization)

Lovely Professional University, Jalandhar (B.Tech AI & ML)

Amity University, Noida (B.Tech AI)

Sharda University, Greater Noida (B.Tech CSE with AI)

Galgotias University, Greater Noida (B.Tech AI & Data Science)

Jaypee Institute of Information Technology, Noida (B.Tech CSE-AI)

Indraprastha Institute of Information Technology, Delhi (B.Tech CSE-AI)

Thapar Institute of Engineering & Technology, Patiala (B.Tech CSE-AI)

SRM University, Delhi-NCR (B.Tech AI & ML)

ABES Engineering College, Ghaziabad (B.Tech CSE with AI)

Backup private options (excluding state-level exams) include LPU, Amity Noida, Sharda and Jaypee, all of which admit OBC-NCL ranks above 20000 through JEE Main. All the BEST for a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

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Dr Dipankar

Dr Dipankar Dutta  |1783 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Jul 28, 2025

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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