Stuck in financial debt loop of credit cards.
Please suggest a way to get out. I am stuck in a financial situation of extreme debt of about 3000000 with a family monthly salary of 130k and I have a toddler too. Need a quick way to get money to get out of this situation.
Take personal loan from bank or either from nbfc and close all credit card loans
As credit card had very high interest like 30-45%
you will get personal loan in 12-15%
then convert this personal loan to emi that you can pay each month
After this close all your credit cards
Pledge your/ your parent’s assets/ gold that you have. Pay off your Credit card debt as much as possible. Cut down on your living expenses and pay the maximum you could to close the CC debt. If possible(I doubt seriously ) , try getting a personal loan/ loan from your friends for a lower(12-18%) rate to close the CC debt.
There is no quick way
- transfer high ROI loans to low ROI
- go extreme in cutting down on expenses
- increase source of income, any non working family member can start working or any side income, even if it's small amount, like 5000, should go towards paying debt
On a serious note, you can follow Dave Ramsey and follow his snowball approach.
Must have accumulated in multiple cards, banks have been calling non stop to offer free credit cards