Want to come out of Debt Trap?

[crimeMaster]

Hi,
I am stuck in multiple personal loans and Credit card Debt, which comes around 10 Lakhs, my salary is 55,000 INR, and my obligation going out of hand making me nothing for my essential expenses,

I calculated my total obligation and my expenses, but it is feeling like I am drowning, some of my loans will is next 2-3 months, but right now I feeling overwhelmed.

I heard about Single Debt and connected to them they offer me that they will deal with loans creditors by giving them small and try to keep my finances in check, should I go for it or is there other way I can keep making EMI's on time and able to come out of this trap.

 

[amitvicky]

Hi,
I am stuck in multiple personal loans and Credit card Debt, which comes around 10 Lakhs, my salary is 55,000 INR, and my obligation going out of hand making me nothing for my essential expenses,

I calculated my total obligation and my expenses, but it is feeling like I am drowning, some of my loans will is next 2-3 months, but right now I feeling overwhelmed.

I heard about Single Debt and connected to them they offer me that they will deal with loans creditors by giving them small and try to keep my finances in check, should I go for it or is there other way I can keep making EMI's on time and able to come out of this trap.

Well... i would suggest to reach out to family (and friends) if they can help you get out of this trap.

With 55k salary and 10L loan it will take at least around 2 years to come out of all debts if you pay every penny that you are earning.

I also assume that you understand that you should not take any more loans either for your needs or to repay any existing loan.

 

[amitvicky]

Here's a thread on similar situation like you from a fellow B-Kifaayatian

A

Thread 'How I Paid Off ₹5 Lakh in Debt With Proper Planning'

Dec 12, 2024

Hi everyone,

Two years ago, I was drowning in ₹5 lakh debt from credit cards and a personal loan. I had a lot of stress because of that. It was looking impossible to get out of this trap. But I started to take some small steps after I researched and made my knowledge into some actionable steps.

Calculating the total amount: I tried to list all my loans, and figured out the total amount which I needed to pay. It was looking too much that got me nervous.
Tracking Everything I spend: I started writing down every single amount that I spent —yes, even chai. Some apps helped me...

• arjungoyal12
• debt trap financial freedom
• Replies: 3
• Forum: Achieving Financial Freedom: Stories & Insights

• 
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[Ayan37]

I was in the same situation as you but I gradually came out of that place. First you calculate all your loans and savings and try to stop unnecessary expenses completely, then if you can make some payments with your savings, then---

1. If your civil is bad then try to take a loan equivalent to the total outstanding loan from private finance at 20-24 percent interest and keep in mind that I should be 30-40 percent of your total salary and after running that loan for about 6-10 months if your civil goes up then try to take a loan from a government bank at a low interest rate like 10-15 percent, in this way you will gradually come out of this debt trap in 5-6 years.

or

2. If your civil is good then try to take a loan equivalent to the total outstanding loan from a government bank at a low interest rate like 10-12 percent, in this way you will gradually come out of this debt trap in 3-4 years.