My family is in debt of 5 lakhs. How to clear it
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My family is in debt of 5 lakhs. How to clear it

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Good question. but I think half of India and many industrialists whose company is under NCLT are also looking for the same answers. How to clear debt of 5 lakhs depends on many factors. What debt. Talk to the bank or whatever it is. Convert to further EMI or “settle”. Or there are debt consolidation services you can use. May be you can sell or pawn some gold.1- if you have gold you can sell it or take gold loan which is less interest rate .

2- if its credit card loan then ask for one time sttlement

3- sell partial land if you have

4- live frugal ,save more repay more

5- try to do some side hustle to earn more.

Sell some of your assets which you don’t need immediately to clear. Cut down all unnecessary expenses, take a lower interest rate loan to pay off the existing loan. Liquidate your assets like gold to pay off the loan amount, Interest is a vicious trap if you don’t have adequate cash flow. You can convert that debt into a money-making asset? For example, maybe you used it to buy a car that could now be attached to Ola/Uber.

Here is an example of someone who achieved FIRE.

Returns are always overrated and Income Tax is a reality. Peace of mind and family time are both priceless. It is the amount one can save month after month and consistently increase it by leaps and bounds every year, by leveraging his human capital, that makes all the difference. We achieved all our financial goals including Fire (which was a coincidence discovered along the way) by investing in FDs alone. Our MF and stock investments are a miniscule portion of our assets and we invest in them for learning and fun and also to familiarize our kid to investment avenues available.

Nothing has changed on ground, we love our profession, continue to work with the same zeal we did when we started our careers, earn, invest to a predetermined target and blow the rest on travel and fun. CRATON is the only thing that matters to us. But we constitute a minority as we do not even know how to calculate CAGR and XIRR and when to use which one and are happy and content looking at the liquid cash we have in our bank accounts.

I guess that’s the correct answer. Think about what you can earn and target and work on that aggressively. You will reach your target.

About Post Author

Robert

He is a prolific writer and finance enthusiast. He likes to read more about the latest updates in finance sector and share tips and tricks to improve personal finance security.
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