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  • Category: Miscellaneous

    How do you deal with debts?

    Dear ISCians,

    My dad passed away recently, leaving an unsecured and undisclosed debt which accounts more than 36K at 5% interest rate a month. I'm really confused at this point with the two terms 'Unsecured' & 'Undisclosed'. How to pay and sort out this debt taking into account that my daily wage is just 280 on regular basis and 300 for temporary one is a question that is worrying me. I couldn't say it's a debt for me because I took the money as loan from 'Mother's Association Group' for my dad's funeral expenditure.

    In Christian funeral (in Nagaland), the expenditure is way beyond the budget of poor people like me. I agree that donations is to be considered but unfortunately, outstanding expenditure has raised my debts.

    Its a kind of headache dealing with debts. Do you have any suggestions please? How do you deal with debts?
  • #594274
    Very sad to know that after the expiry of your father his unsecured and undisclosed debt to the tune of 36K at 5% interest rate a month has now fallen on your shoulder. Some times parents wont reveal to the children what they are doing and how they are coping up for the dire financial needs and if suddenly the death happens, the children are left in lurch. But what I feel that from whom ever you father might have borrowed, they cannot force you to pay the money and it is your prerogative to accept that responsibility and take your own time and schedule to pay them back.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #594288
    @K Mohan, thanks for the prompt input. I haven't got a regular job. By earning 280 Rupees a day plus financing my little sister' education who is currently studying in 10th standard is something hard to imagine. We are the only siblings at home with no parents. Mom has left us way back in 2000 when I was just 10 years old and dad passed away. Apart from cars and two wheelers, we haven't got a home of our own. On the top of that, there are not many jobs in Nagaland and I'm unemployed. We always had a hard time since childhood. Now the situation has raised above my head and I can't take anymore. Nevertheless, we already get used to this living.
    Hackers never learns but always wins!

  • #594293
    Well, you are in a very critical stage of life, and I can very well understand your difficulty. But, no matter what the show must go on! Out of the 280/- that you earn daily, take out a sufficient amount of it that you can save it separately for paying the debt. For a particular period till the debt is over you will have to undergo hardship dear JD. And this is one of the easiest ways to eliminate your debt completely, but slowly. Remember that, slow and steady wins the race. So one day, slow and steady you will clean out your debt.

  • #594348
    Basing on your skills and qualifications, try for a job. Meanwhile try to earn some extra money by working extra hours. Try to approach Banks. They may be offering loans for self employment at a very low rate of interest. If you get that loan you can start a business on your own. Even some banks may offer you personal loans at a lower rate than 5%. Take that loan and repay high rate of interest loans. Try to save as much as possible from your earnings. Definitely your good days will come and you will be free from debts.
    always confident

  • #594376
    Thanks a ton ISCians. I'm a high school drop-out. I take up odd jobs like painting, collecting plastic bottles, writing in the niche of tech, and reviwing inbound and outbound calls online at Humanatic.

    Your suggestions are highly appreciated.

    Hackers never learns but always wins!

  • #594389
    Dear JOhn,
    I can read your psychology. I understand your problems. But you are capable of handling the situations. You are intelligent and efficient. You will overcome all your problems and lead a peaceful and happy life. May God bless you and be with you in all your endeavours in life.

    No life without Sun

  • #594485
    Thanks Mr. Sun. May good be with me.
    Hackers never learns but always wins!

  • #594498
    There are a few alternatives for you.

    1. If your father has left no assets which you inherit, then you need not take up the liability he has made. As you have not signed any documents as a borrower or guarantor legally you are not bound to repay your father's debts if you have not got any assets left by him. (However in practical terms this may not be easily practical, as we live in society).

    2. You have to deal with the lender, confirm that his claim is correct. Then taking some well wishers negotiate with him to a lower rate of interest or waiver and concession. Then take help from sympathetic and magnanimous friends and well wishers money without any interest and fully repay the old loan of your father. Then start repaying the friends and relatives in systematic way regularly in small amounts.

    3. There are many social organisations and community set ups which help poor and needy people with financial assistance. Take guidance of some local social worker, NGO or even the people's representative who can help you in getting governmental or NGO's help in job and financial assistance.

    4. If you have some assets which can be disposed off( say a car which is not much needed for your daily life) you may sell them right away and clear all debts (refer para 2 above) Then start saving some amount from whatever your daily earning.
    Always keep it a point to avoid borrowing and that too at high interest for mere consumption purposes.
    For any problem there is solution. You may discuss this matter also with those who you can trust as well wishers and sure to help.

  • #594557
    I think what will work for you from here onwards is keeping head calm and focus on compounding effect. No matter how much money you earn for upto age of 40 try to add atelast 50 percent of your income to savings. Pay your debt using debt snowball method. If required pay all completely to get the tension off your head. Don't borrow money from others. Instead get a job even part time job helps a lot. You should also focus on doing online jobs which are reliable. Never pay for online jobs either, they should pay you. Avoid MLM, network marketing type of stuff. When you are financially desperate MLM and network marketing sounds like heaven but its not. Just focus on saving and hustling for next 10 years from here onwards.

  • #594647
    Thanks Mr. Mahesh and Venkit. Your suggestions are wise and I appreciate all the inputs.
    Hackers never learns but always wins!

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