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Seeking Expert Advice on Debt Consolidation

Hi everyone,

I’m looking for advice from financial experts regarding a debt consolidation loan. Here’s my situation:

  • My friend and I started a business that unfortunately went into a total loss. Due to personal reasons, my friend won’t be able to contribute to settling the loan immediately.
  • To manage the financial burden, I’ve taken small loans and also withdrew cash from my credit card, which I converted into EMIs. The interest rates on credit card EMIs are very high, and the total EMIs now exceed my monthly salary.
  • I’m considering consolidating my debts into a single personal loan with a longer tenure (6-7 years) to reduce the monthly burden and save on interest charges. Currently, most of my loans have a tenure of 2-3 years.
Here are some key details about my income and financial profile:

  • I earn a monthly salary of $4000, which I receive in dollars from a US-based company as I’m on a contract with them. I live and work in India.
  • Since it’s a contract-based role, I don’t have an official email ID from the US company, but I do receive payment receipts and have bank statements (ICICI Bank has previously approved a loan based on these details).
  • My CIBIL score is 777, which I believe is decent.
I’m exploring options for a debt consolidation loan to manage my EMIs better. I’ve come across online portals like LoansJagat, but I prefer going through banks as their interest rates are lower (around 10.5% to 11%). My CA suggested an alternative: taking a loan from individuals at 20% interest for a year to pay off credit card dues and then approaching a bank for a top-up loan. However, individuals will be hesitant to give loans I believe. Approaching friends and relatives also won’t work.

I would greatly appreciate advice on:

  1. Banks or lenders that might consider my situation for a debt consolidation loan.
  2. Whether online portals like LoansJagat are reliable or if sticking to banks is a better option.
  3. Any alternative strategies to consolidate my debt effectively.
If there’s anyone in technofino community who works in banking or has been in a similar situation, your guidance would be invaluable. Thanks in advance for your help!
 
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