
In big credit card debt
A friend of mine yesterday confessed that he has accumulated around 10 lacs of debt using different credit cards and now has no idea how to repay. He is very stressed. Can anyone help with how shall he proceed further? He earns around 1-1.10 lacs/month and already has a ₹40,000 car EMI.
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Sell car, clear as much as possible.
Take handloan from relatives or frinds and clear the remain credit card dues. Pay slowly back to them. 1 lakh is good salary.
If no friends are helping go for personal loan and interest is less than that of credit card.
And tell them to have some discipline in life

First advice, do not go for loan apps. Do not go for anything that charges heavy interest. Next, sell the car. That should help in clearing some amount. Next, loan the remaining amount from friends/family and repay them every month. Or go for a personal loan with less interest. 1 lakh month is a good salary to do that.
If he manages well, can be done even without selling the car.
I recently lost a friend who couldn't handle finances well, made one loan to clear another which put him in a vicious cycle. I wish I had done something there! So as a friend, don't lose his side mate!

Thank you! So sad to hear about your friend.

Stress is not from having 10L debt.
Stress is from not having a plan on how to pay it off.
Snowball - start paying off smallest credit cards first.
Once a card is paid off, take scissors and cut the damn card.
Repeat till everything is done.
To ask them to sell the car, live barebones, etc., won't work if this person already doesn't have discipline to not let those credit card bills soar.

Great advice!

If you have your PF left, please take it and pay off all the debts..

There's an option called Balance Transfer, check with banks and take the total all the cards outstanding and ask for one single loan. Since his car emi is 40% of take home, he is only eligible to pay 15-20k more for emi.
Tag his car under zoom cars or any private apps for additional income to repay.
Take pf and settle as much as he can.
10L loan for 3 years will come to 33k emi per month. He can't go for loans unless he clears car loan. So first apply for PF, Tag car to rent, Ask banks like indusland, idfc, pnb, bob for overtaking outstanding.
If he has saved any Mutual funds, then he can pledge that and take a loan against it. Even if you don't pay this you don't have to worry much they will redeem it.

Good suggestion! 👍🏼

Convert cc debt to personal loan and pay

I am not good at finance as well but. If i were in this condition i would have sold few depreciating assets on olx. Like car ,tv and some of the stuffs that i dont use on regular basis. Build side income/switch a job with better pay , ask for help from relative with 0 interest rates and all and repay the 60-70% of loan . atleast i don’t want be in stress 🥲.

First convert credit card debt into personal loan, credit card will charge 35% interest annually, and with penalty and late fine every year debt amount will double. Second get help from friends and family to reduce debt to minimal.

Create a plan of how much he can clear himself. Then discuss with family if they can help and how u plan to repay them and how much time u need to repay.
I would say don't borrow from friends as he won't b able to return the money soon which will create issues.