Help in debt consolidation 31M

[iamlookingforanswers]

I am 31, married, working, Bangalore, Net Take home Rs. 69700 pm.

Due to various reasons like COVID, Marriage of siblings, parents hospital expenses and increased cost of living, i have a total debt of Rs. 15.75 Lakhs from various sources like SBI Bank and Online Portals like Mobikwik, Cred, Paytm and Kredit Bee.

As the requirements were urgent, I had to borrow from these sources and due to the nature of my job at that time, it was difficult for me to get a proper loan. ( I have corrected that now. Been working at a semi reputed company)

The kicker is, I pay an EMI of Rs. 67,860 for the loan of 15.75 lakhs. Out of which 25 k is ending by Nov 2025.

At the end of months, I am just left with about 2 k for expenses.

My cost of Living: Rent+Food+Utilities- 35 K pm Term Plan, Health insurance (Family), LIC - 11 k pm

My savings about 1 lakhs in Mutual funds and stocks, (constantly decreasing due to my dilema)

I need advice on how to go ahead. It's difficult for me to survive like this. I have to take loan after loan just to cover my daily expenses.

My wife do chip in a bit, she is paying off her student loans herself.

What is the solution here?

Should I get a better paying job (easier said than done) or should I consolidate my debt, cuz the EMI for 16 Lakhs is about 35 k @queen_vashti pa? If yes from where can I get it?

Any other ideas..

Edit:

• MY wife is able to contribute about 10 k pm
• Adding the Loan Detail

• Bank>>>EMI> End Date>>> Total O/s
• SBI__________16740_____Nov-25_______282939 (11.5%) (5 yrs)
• Cred_________4994 ______Jul-28________181050 (IDFC: 15%) (4 yrs)
• Paytm_______10827______Feb-26_______216850 ( Hero Fincorp: 18%) (3yrs)
• Axis__________1817_______Nov-24_______6500
• Axis-2________1100_______Nov-24_______5000
• Tata Capital__11617______Dec-28________492000 (14%) (5yrs)
• Kreditbee____10782______Apr-26________231623 (18%) (2.5yrs)
• Mobikwik____9983_______Aug-25_______185299 (18%) (2yrs)

As far as my situation, my CIBIL is good at 780+, i dont default in payments. Cant borrow money from parents, they dont have much.

 

[christian_countrygal]

@iamlookingforanswers Close the 2 Axis loans immediately, use your wife’s contribution for that.

Then tackle the 18% loans. I would look into refinancing these loans. If you have any property, you can look into loan against property from SBI.

If not, see if you can get a personal loan in your wife’s name, enough to close at least 1 18% loan but the interest and EMI should of course be lower than the current loan. That will help you reduce the EMI burden.

 

[iamlookingforanswers]

@christian_countrygal Wife is already paying her student loans. Don;t have property. I need to refinance these myself only, but need a verifiable service provider.

 

[emmanuel2016]

@christian_countrygal Second this!, closing two smaller loans will also reduce stress. Could you not ask your sibling to help you? You can pay them back later when you have some breathing room.

 

[mississippi_yaya]

@iamlookingforanswers Can you give more clarity on the financial situation? Like can you give a breakdown of your loans, it's interest rate and tenure separately.

Could you also mention your wife's income and how much she is able to contribute?

 

[iamlookingforanswers]

@mississippi_yaya updated in the post

 

[neilhall]

@iamlookingforanswers

1. Borrow from wife to pay off the two Axis loans ASAP. There's no need to carry them till Nov-24.
2. Start paying additional 2917/- to the Mobikwik loan.
3. When that is paid off, return the money you borrowed from your wife to pay off the Axis loans.
4. Pay off the Kreditbee next by paying additional (9983+2917) along with the EMI of 10782/-. Make sure that the additional amount you are paying is towards the principle amount of the loan and not along with EMI.
5. You see the patter here now. The loans will disappear soon enough.

 

[iamlookingforanswers]

@neilhall Sounds like a plan.

 

[txlenna]

@iamlookingforanswers Find part time job or work and earn extra money. I know it’s hard but that’s the most feasible solution.

 

[iamlookingforanswers]

@txlenna Part time sounds good but i work Mon-Sat. Would be very difficult for me to spare time.

 

[txlenna]

@iamlookingforanswers What are your working hours.?

 

[iamlookingforanswers]

@txlenna 9-6

 

[txlenna]

@iamlookingforanswers If you can maybe teach kids for 2-3 hrs online and make extra money.

 

[iamlookingforanswers]

@txlenna Never thought about it. I will try it out.

 

[acaudpdrkkl2015]

@iamlookingforanswers Try googling Debt Snowball Method. Attack your smallest debt first finish it off and off to second loan and so on

 

[iamlookingforanswers]

@acaudpdrkkl2015 What do I attack it with? I am left with 12 k to run the household expenses of about 40k. I still have to pay EMIs of 67k on time to avoid penalty.

 

[acaudpdrkkl2015]

@iamlookingforanswers Pay the minimum due on all loans other than the smallest ones. Once the smallest ones are finished you can put the amount into larger ones. This is the way to finish your loans in smallest amount of time.

Other method is to tackle higher interest one first that way you will pay less interest but might take more time to be debt free

Also stop the 11k LIC if it is an investment you can invest later on in life. Withdraw the stocks/MF and keep it in FD as emergency fund

 

[iamlookingforanswers]

@acaudpdrkkl2015 LIC i have plans to close it this Year only. It's useless. It will save me around 3 k pm. Rest 8 k i have to do because it's term plan and Health Insurance. I can't discontinue that.

Speaking of minimum payment, how do I do that? I thought EMI every month is the minimum payment to be made to a personal loan. All my loans are term/personal loans

 

[scvet7566]

@iamlookingforanswers Close Axis and stop LiC and then focus on rsst

 

[tatisha]

@iamlookingforanswers

• Increase your income and so will your wife need to
  
• Don't plan for kids in current circumstances. It will just add more pressure for you.
  
• Don't fall for get quick rich schemes like lottery or if someone suggests you options trading, commodity, etc It is tempting when you are in debt. It will only make you sink further.
  
• See if you have friends who could bail you out with a loan with no interest or at a rate lower than the interest rates you are currently paying the lenders.
  
• Sell any assets like gold, car, etc or pawn gold for loan. The interest rate would be much lower.

Hang in there. Bad times will pass.