Help in debt consolidation 31M
- Thread starter iamlookingforanswers
- Start date
@iamlookingforanswers considering that you're married and already have additional responsibilities, I would suggest to consolidate as the first step. Then look for better paying job or alternative source of income to increase in hand.
Next would be the following:
1. Build emergency fund.
2. Get into a habit of investing regularly.
3. Save a small chunk to pre-pay the existing loan you are going to take.
Once your income gets better and have enough emergency fund, you might get left with spare money which you can use to pre-pay the loan to get some peace.
Next would be the following:
1. Build emergency fund.
2. Get into a habit of investing regularly.
3. Save a small chunk to pre-pay the existing loan you are going to take.
Once your income gets better and have enough emergency fund, you might get left with spare money which you can use to pre-pay the loan to get some peace.
iamlookingforanswers
New member
@iamlookingforanswers Now that you have a good paying job, can't you get a personal loan from your salary account bank and pre-pay all the loans ?
If not, I think there are agencies who do this work, I will wait for more experienced players to comment on that.
Also, don't take stress. Things are going to get better. Hoping for the best
If not, I think there are agencies who do this work, I will wait for more experienced players to comment on that.
Also, don't take stress. Things are going to get better. Hoping for the best
iamlookingforanswers
New member
snowtrekker
New member
@iamlookingforanswers Close the high interest loans first.
You can talk to your relationship manager of your salary account to give you a loan, or consolidation for the existing loans.
Try to keep the interest rate below 12%.
Don’t worry about mutual funds, start by closing your loans first.
Keep some savings for emergency funds, maybe 10-15% of your Income.
You can talk to your relationship manager of your salary account to give you a loan, or consolidation for the existing loans.
Try to keep the interest rate below 12%.
Don’t worry about mutual funds, start by closing your loans first.
Keep some savings for emergency funds, maybe 10-15% of your Income.
iamlookingforanswers
New member
@snowtrekker I get salary in SBI account
My relationship manager is useless. I tried to get a second loan from them before going to these online platforms.
They strung me along for 21 days by giving me excuses like they can't change the code associated with my account and finally told me I can't get a loan because my code is not changed.
What is this code u ask, it's my employer code. I was in consulting with govt and now I am in corporate.
These SBI guys can't change that it seems. SMH
My relationship manager is useless. I tried to get a second loan from them before going to these online platforms.
They strung me along for 21 days by giving me excuses like they can't change the code associated with my account and finally told me I can't get a loan because my code is not changed.
What is this code u ask, it's my employer code. I was in consulting with govt and now I am in corporate.
These SBI guys can't change that it seems. SMH
snowtrekker
New member
@iamlookingforanswers With Axis, you should have an account too right. Ask them if they can help you out with a PL. keep the interest rates as low as you can.
iamlookingforanswers
New member
@snowtrekker Axis is just a Credit Card. Not an account. I tried with Axis Finance to consolidate but they rejected my application due to too many loans.
snowmonster2023
New member
@iamlookingforanswers Hi OP,
I had availed a personal loan at 10.99% from HSBC some years back.
18% is extremely high, so taking one consolidated loan at 10-12% for 5 years, will definitely bring some relief.
Do check pre-payment terms though to avoid paying extra during loan closures.
I had availed a personal loan at 10.99% from HSBC some years back.
18% is extremely high, so taking one consolidated loan at 10-12% for 5 years, will definitely bring some relief.
Do check pre-payment terms though to avoid paying extra during loan closures.
iamlookingforanswers
New member
@snowmonster2023 I tried with multiple banks but due to so many loans and EMIs going to 97% of my income. I can't get loans from banks.
@iamlookingforanswers Can you share what LIC policy you are paying? How much have you accumulated?
iamlookingforanswers
New member
@iamlookingforanswers The LIC endowment plans are useless and will not generate more than 6% returns and insurance is quite less. Close the policy, with whatever you get and bulk pay the loans. You will be better off without the policy and you already have a term plan also.
iamlookingforanswers
New member
@nick1000
- A better paying job is best but it will take its own time. Part time is an option but depends on many things.
- Consolidation of loans is a good plan. Try some big banks. Walkin and asking. Sometimes different branches of the same bank also change things. Try this with different banks in a single week only( to keep credit enquiries hidden from the next bank)
- As said above, LIC and MF liquidation will help. At least the LIC endowment does not make sense.
- If the lowest interest rate loan tenure can be increased, then some amount should be reduced. Put that amount in a highest interest rate loan. Don't try this without proper calculations.
- Ask friends/family for some amount and time frame when you will start paying and how much. Don't burn the bridge while exercising this option.
- If your family is onboard and have some gold ornaments and you are not going to default on loans, then taking a gold loan will be cheaper and might help with prepayment. Still it also requires calculation.
@iamlookingforanswers Getting a higher pay job should be priority whether you have a loan or not.
My suggestion will be to check with bank if you can get loan(personal or with collateral) at lower interest rate, say 10-12% for max tenure(5-7 years). Use this to payoff higher interest loans.
If you are able to get 7 years loan, your emi will be lower and it will be less stresful for you.
I think any loan above 12% should be paid by your investment in FD, mutual fund etc. But dont break your savings if you dont have emergency fund.
In any case, prepay loans of highest interest rate first and then come down. But if there are prepayment charges, you need to do calculations.
My suggestion will be to check with bank if you can get loan(personal or with collateral) at lower interest rate, say 10-12% for max tenure(5-7 years). Use this to payoff higher interest loans.
If you are able to get 7 years loan, your emi will be lower and it will be less stresful for you.
I think any loan above 12% should be paid by your investment in FD, mutual fund etc. But dont break your savings if you dont have emergency fund.
In any case, prepay loans of highest interest rate first and then come down. But if there are prepayment charges, you need to do calculations.
iamlookingforanswers
New member
carycrafts
New member
@iamlookingforanswers I agree with others. Start closing out the smaller loans (6500+5500). That will give you some breathing space.
Then try to prepay the loans with highest interest rates. Not sure how it works for personal loans, but for home loans you can get your emi reduced when you prepay. Not a great option as reducing tenure is more helpful. But yeah, with only 2k to spend and having a spending close to 30k is going to keep piling up loans for you.
Also, see if any of your family members are willing to loan you some amount to close any of the loans. But be very open to them about the situation, as to how long it will take you to pay them back. Good luck.
Then try to prepay the loans with highest interest rates. Not sure how it works for personal loans, but for home loans you can get your emi reduced when you prepay. Not a great option as reducing tenure is more helpful. But yeah, with only 2k to spend and having a spending close to 30k is going to keep piling up loans for you.
Also, see if any of your family members are willing to loan you some amount to close any of the loans. But be very open to them about the situation, as to how long it will take you to pay them back. Good luck.