Please help me come out of Debt ?

POSTED BY sandip ON October 8, 2013 11:39 am COMMENTS (8)

Hi Manish/Everyone !

This is Sandip chauhan From Ahmedabad,  i am a regular reader of your Financial awareness blog. i also purchased your books which is excellent , i am sure  if i have found your books before i came into a problem , i was surely saved my financial life.

unexpectedly i have put my self in to heavy loss in the stock Market at the very initial age of my career . i m just 26 years old , and i have 5lac Rs. debt . my monthly income is 25k . i have to pay the debt , i don\’t have any family support for that as i am belonging from very middle class family so no  support expected. i am planning to obtain personal loan to repay the debt .

can u guide me how i can comeout from this situation

Any other mode ? kindly help me . thank


Sandip chauhan

8 replies on this article “Please help me come out of Debt ?”

  1. ashalanshu says:

    Dear Sandip, first of all try to differentiate your debt. Say out of 5L Rs. 3L can be paid back after 1Y but remaining 2L you need to pay in next 6-9 months. So create a break up of your debt first. Now if you do have any little saving at all either in FDs or RDs or MFs, break it and repay the immediate debt first. From the advice of dear Manish, @ 15K mly, you can repay all the loan in next 30 months’ time here I assume some future salary hike ‘ll be there for you. Even for this 15-20K mly figure, you may break it in 2-1 ratio. bigger part for immediate debt repay and smaller part for long term debt repay.



  2. sandip says:

    Thank you very much bhavesh & Manish Sir, for giving me such a valuable advise ..
    As u guessed yes i am living with parents and yet not married ,
    No chanced to borrow upfront …i have to pay by installment . i will try to take help from friends & Family else i have to go for Personal Loan.
    The Phase which i m facing is very hard …the situation is created that i have to forget my other dreams & plans to clear debt first.
    i hope i will come out from this debt and will rebuild my life.
    thank you very much.

  3. Hi Sandip

    What is your monthly surplus left each month ? Can I assume you are living with your parents right now and not married ? If thats the case, then you might save close to 20k per month if you go out of your way to mercilessely save .

    Now 20k per month means you can save 5 lacs only in 2 yrs time . As Bhavesh said, if you can convince someone from your friends or relative to support you even partially and pay them each month . That would save you a good amount of interest.

    Do you have an option to pay 5 lacs in installments at all or you need to pay it upfront ? If its upfront , then you will have to borrow it from someone else personal loan has to be taken because there wont be any other way.

    Let us know more .

    Stay away from anything which looks too good to be true !


  4. Bhavesh Furia says:

    One more thing Sandip.

    Never invest or put money taken from friends/relatives/bank-loan in stock market since it is very volatile. Whenever you put money in stock market ask yourself following things :

    1) For what purpose I am investing this money and when will I need this money back ?
    2) Will I be okay if I lose 80% of money by next week ?
    4) Do I have to repay this money to someone or its all My money ?
    3) If I lose this money, am I young enough that I will be able to recover fast or change my lifestyle habits to cope up with the situation ?

  5. Bhavesh Furia says:

    Dear Sandip,

    Since you have borrowed the money from your friends and if they are of understanding nature you can ask for some time to repay the debt. Going for a personal loan to pay the debt will put you in one more debt which you will have to pay to bank 🙁
    Tell your friends that you will pay them in small-small amounts every month.

    I know you can’t pay amount of 5 lakhs in chunks in less time. If possible, ask someone from your family for help, and assure them that you will never ever fall into traps like this. Try to take least amount of loan from bank because repaying it will affect your professional life.

    Since you are still young you have to focus on your work, spend only on what is needed, cut down your unnecessary costs, save more. Try to work on weekends also, if not office related then some hobby related. Use your best skill as your best weapon.
    Example : Teach drawing, Teach photography, Teach computer programs etc. or whatever you are good at.

    Don’t fall into trap of making huge money in short span, it is very DANGEROUS.
    Good things take time to build.

  6. sandip says:

    It was just a gambling , 🙁 …i didn’t aware the volatility of Future & Option. borrowed from friends & also lost own savings.

  7. Bhavesh Furia says:

    Dear Sandip,

    How did you get into this debt ? Is it that you have bought stocks and most of them are not performing well ?
    To whom you want to pay the debt ?
    What kind of stocks you bought which led you in this situation ?
    How were you investing in stock market, direct or via mutual fund ?

    1. sandip says:

      It was just a gambling , 🙁 …i didn’t aware the volatility of Future & Option. borrowed from friends & also lost own savings.

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