Debt Counselling: Sanjay Agarwal

I had told my friend in the US of my worsening debt, for which he advised a debt consolidation loan and how it had helped many there. Is it possible here? Can I get it to pay loan and credit card dues?
This converts multiple and costly loans into a single loan. It saves late payment charges and lowers rate. It has a longer tenure, thus reducing the equated monthly instalment (EMI). But it isn’t here. However, by reorganising loans, you can benefit. Replace high-cost loans by 1/2 low-cost ones, with a bit longer tenure. Also, close the former. This will lower interest, EMIs and prevent late payment dues. The loans will depend on assets, against which you can take a personal loan to pay credit card dues.

 

Paying EMIs and card bills has become difficult, as my firm has seen a major drop in demand from the US. This has led to a cash flow problem. Should I go to a counsellor or the bank? I don't want to sell my assets.
The problem isn’t of loans but of the firm not doing well. A long-term solution is to bring higher revenues or cut costs. For the short term, consolidate debt . Replace old loans and credit card dues with new loans at lower rates and longer tenures. Thus, you won’t be selling assets.

The writer is senior VP and group head (retail strategy and branding), Arcil. Send your queries to yourmoney@bsmail.in