Hi Sir, I am 32 years old. I have LIC 8000 twice a year, 10000 per month SIP for next 15years. I earn 15lakhs per year. I am currently in new tax regime. I have a joint home loan of 73lakhs with my husband and a personal loan of 90000. I have a kid whose fee is around 1.6lakhs per year. My husband gets around 1.10 per month after tax. How can we plan to close personal loan quickly and close home loan quickly. Home loan is for 28years we are done with 2years.

Ans: You are going through a very painful phase. It takes courage to share this. You are not alone. Many go through financial struggles silently.

This answer will cover your full situation in a step-by-step manner. It will help you:

Handle your emotional stress

Tackle debt one by one

Reduce financial pressure

Build a fresh plan with clarity

Let us go step-by-step with full empathy and practical advice.

You Are Emotionally Exhausted
You are hiding pain from family

Lies are making your mind more stressed

You are feeling guilty and stuck

You are not sleeping well

You are feeling helpless. But the truth is you can come out of this.

How?

By facing the issue step by step

By asking for help – not hiding anymore

By believing that future can be better

It’s okay to make financial mistakes. But you must correct them now.

Let’s Understand the Entire Situation
Your income:

You earn Rs. 1.3 lakhs per month

Your husband earns Rs. 1.10 lakhs per month

So total family income is Rs. 2.4 lakhs per month

Your loans and EMIs:

Personal loan – Rs. 90,000

Home loan – Rs. 73 lakhs (28-year term)

Credit card dues – Rs. 4 lakhs

App loan – Rs. 1 lakh

Other informal loans – with monthly interest to friends

You are in debt trap now:

Credit card late fees and interest keep rising

App loans and private loans may have harassment

CIBIL score is now poor

EMI bounces and CC notices have already started

This is a red zone. But still not the end. Solutions are available.

Step 1: Stop Using Credit Cards Today
Do not swipe for even Rs. 1 now

Disable online auto-pay or subscriptions

Credit card interest is 36% to 48% per year

You are paying only interest, not the principal

Every swipe adds more pain. Stop now. Pay cash or use debit card.

Step 2: Informally Talk to Parents
Don’t hide anymore

Tell them truthfully, step by step

Do not ask for money immediately

Just share the burden

Parents may get shocked, but they will support. Their blessings matter now.

Telling lies daily is damaging your self-respect. Being honest is your first step to healing.

Step 3: Stop LIC Premiums if Not Term Plan
You pay Rs. 8,000 twice a year (Rs. 16,000 total)

Check policy type: If it’s endowment or money-back, surrender it

Use that amount for debt clearance

LIC traditional plans give 4%–5% returns.

They lock money for long years.

You need liquidity now, not locking.

Investments can wait. Clearing debt is priority.

Step 4: Pause All SIPs for 1 Year
You are doing Rs. 10,000 monthly SIP

Pause it for now

Use this to reduce credit card or personal loan

Investments can wait. You are paying 36% interest and earning only 10–12% return on SIP.
So logic says – pause SIP and clear debt first.

Step 5: Create a List of All Loans
Write down every loan with:

Amount due

Monthly EMI

Interest rate

Lender name

Whether it’s formal or informal

This gives clarity. You will know which one to tackle first.

Step 6: Talk to a Certified Financial Planner (CFP) for Debt Strategy
You need a structured plan.

Debt Snowball Method

Clear small loans first

Builds confidence

Debt Avalanche Method

Clear high-interest loans first

Saves more money over time

CFP can guide you based on real numbers.

Step 7: Consolidation Loan – A Good Option But Only If CIBIL Allows
You are looking for one loan to pay off all others. Good idea.

But banks will reject due to low CIBIL and EMI bounces.

What can help?

Check with small NBFCs or co-operative banks

Try peer-to-peer lending platforms (but only regulated ones)

Use gold loan if you have gold

Joint loan with husband – if his CIBIL is fine

Don’t go to unknown apps or loan agents. They will harass and cheat.

Avoid agents who ask for upfront processing fees.

Step 8: Talk to Credit Card Company
Call the bank and ask for:

Moratorium or settlement offer

Convert your total due into 12-month EMI

Stop interest from growing daily

You can even ask for settlement if CIBIL already broken. But do it only as last option.

They will remove legal notices once plan is made.

Keep all agreements on email.

Step 9: Kid’s Fee Can Be Broken in EMIs
Kid’s annual fee is Rs. 1.6 lakhs
You can request school to allow EMI payment

Some schools allow 3–4 part payments. Ask them humbly.

Reduce private tuition costs, online classes, and other child-linked expenses for 1 year.

Step 10: Create Emergency Budget
Your current lifestyle must change.

Make strict budget:

Stop eating out

No online shopping

Pause OTT, clubs, paid apps

Cut fuel and travel

Reduce maid and helper costs

Sell unused items at home

You need to free Rs. 40,000–50,000 per month to attack debt.

Step 11: Husband Should Also Pause All SIPs and LIC
If husband is investing, pause for 12–18 months. Use every rupee to reduce your debt.

If home loan is joint and EMIs are stable, keep paying them. Don’t default on home loan.

You can pay home loan faster later. Right now, focus on clearing high-interest loans.

Step 12: If You Have Gold, Use It
If you or family has gold, you can take gold loan:

Cheaper interest – 9% to 12%

Can repay in 6–12 months

No CIBIL check

Use it to clear credit cards and app loans.

Step 13: Mental Health and Support
Debt stress breaks your peace. You are emotionally exhausted.

Please don’t think of giving up. It is just a phase. You can come out strong.

Talk to:

Close friends who won’t judge

Family member who is understanding

Certified counsellor if sleep and mood is affected

Your life is more important than any debt. This phase will pass.

Step 14: Slowly Rebuild After 1 Year
Once debts are under control:

Start SIP again

Create emergency fund

Resume home loan prepayment

Build CIBIL again

Focus on income growth

Learn from this phase. Don’t repeat mistakes.

Finally
Right now your pain feels heavy. But with the right steps, you can recover.

Don’t hide from parents anymore

Don’t swipe card again

Don’t take new loans to pay old ones

Don’t stay silent when things get worse

Take action today. Start fresh. Stay disciplined.

Your honesty is the first step toward freedom.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment