How To Pay Off 16 LOANS and ₹70 LAKHS of DEBT?! | Money Matters Ep. 62 | Ankur Warikoo Hindi
Published: 2025-05-14
Status:
Available
|
Analyzed
Published: 2025-05-14
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 2
Prediction
Topic
Status
Credit card loans with high interest rates (35-40%) should be prioritized for immediate repayment using available savings.
"The most expensive and smallest debt you have right now is your two credit cards. 32,000 42,000 So the ₹1,30,000 you have saved. My advice is that you should clear your credit card loans immediately. Why? Because their interest is 3540%."
Correct
Within 3 years, all loans except the home loan and the ₹15 lakh loan are projected to be repaid if the recommended strategy is followed.
"After 3 years, if you follow this process, all your loans except your home loan and the loan of ₹15 lakh will be repaid."
Pending
Within 5 months, an additional ₹21,000 per month will be freed up, which can be used for loan repayment.
"First of all, within 2 months, your first loan whose EMI is around ₹11,000 is going to end. And in three more months, your committee investment of ₹10,000 will be finished. Meaning, within 5 months you will have around ₹21,000 free every month, which is a lot of money because with that you can slowly start repaying the remaining loans."
Correct
After 3 years, it is recommended to start investing ₹25,000 per month to build financial stability for the family.
"Path number one will be I will start investing ₹25,000 out of this 50. Because I now need to build the stability and the future of not just me but my entire family. So I will start investing ₹25 every month and this will be at after 3 years"
Pending
The speaker advises clearing credit card loans immediately due to their extremely high interest rates (35-40%).
"The most expensive and smallest debt you have right now is your two credit cards. 32,000 42,000 So the ₹1,30,000 you have saved. My advice is that you should clear your credit card loans immediately. Why? Because their interest is 35-40%."
Correct
After 3 years, the remaining ₹25,000 of the surplus income should be used to prepay the ₹15 lakh loan due to its higher interest rate.
"and the remaining ₹25,000, I will use to prepay the current loans which are only two loans. Start paying off the loan of ₹15 lakh. Because that is still at a higher amount of interest and the sooner it gets cleared the better."
Correct
It will take approximately 5-6 years to repay the ₹15 lakh loan even with a ₹25,000 monthly prepayment, due to accumulating interest.
"Because even if you pay ₹25,000 then only ₹3 lakh is lost in a year. That means it will take him 5 years to clear it. 5 to 6 years because interest will keep accumulating."
Incorrect
A phased approach to loan repayment is outlined, where freed-up funds from smaller loans will be redirected to larger ones, and by month 3, ₹20,000 will be available monthly for debt reduction.
"After 1 month your loan of ₹11,000 will be closed. So that ₹10,000 will now be empty with you. When those ₹10,000 are empty, then you can start giving those ₹10,000 to the relative with loan number eight so that he feels that now it has started getting repaid and it will be repaid in a few days, so after 3 months of loaning ₹10 every month, your ₹10 committee will also get exhausted, so now you have ₹20,000, by that point ₹1 lakh of this relative has already been exhausted."
Pending
After 3 years, with improving income and financial situation, the focus will shift to repaying the home loan, but only after the ₹15 lakh loan is significantly reduced. It's suggested to balance investment and loan prepayment.
"So it is going to take a long time and only after that will you probably go for a home loan. But of course after 3 years things will improve and your income will also increase. You will have more to spend if you would have made some other decisions as well but divert that ₹00 to ₹25,000 investment and ₹25,000 towards your loan."
Pending
A specific loan (previously scheduled to finish next month) will now be repaid over 10 months using a redirected payment strategy.
"So the loan that you were going to finish next month, you will repay it by gradually paying the money every month over 10 months."
Correct
The snowball method for debt repayment is recommended, prioritizing the closure of small loans first for psychological motivation before tackling larger debts.
"Psychologically, friend, it is very important that you start clearing your small loans quickly. Big loan tackles will happen but they won't happen overnight. There are many small loans, if you close them quickly then you will feel psychologically as much as you would on the snowball method, so yes, so it is extremely important that you choose it only through the snowball method. Small loans first, bigger loans later and gradually try to move towards them."
Pending
After 10 months, the available monthly surplus for loan repayment will increase to approximately ₹27,000.
"Now at this point, after 10 months, you still have this ₹20,000 left with you. Plus the ₹4,000 loan installment that used to be paid every month, sorry, the interest that used to be paid is also left now. Plus ₹3,000 which you had in your credit card is also left. This means that now you are able to save around ₹27,000 per month."
Pending
Within 5 months, two loans are projected to be repaid, freeing up approximately ₹21,000 per month.
"First of all, within 2 months, your first loan whose EMI is around ₹11,000 is going to end. And in three more months, your committee investment of ₹10,000 will be finished. Meaning, within 5 months you will have around ₹21,000 free every month"
Correct
A detailed plan is provided for clearing multiple loans within specific timeframes, including using freed-up funds to tackle larger debts like a ₹1 lakh loan in 4 months and a ₹7 lakh loan in approximately 6 months.
"So clear loan two in 2 months now you have got ₹28,000. With that ₹28,000, you can start repaying your loan of ₹1 lakh. So it will be repaid to you in about 4 months. So clear loan four in 4 months. Now you have ₹30,000. With that you can start repaying the loan amount of ₹7 lakh. So if the loan is ₹1 lakh then it will be in six months or six months."
Pending
After 1 month, an ₹11,000 EMI loan will be paid off. This freed-up amount, along with the ₹10,000 from a committee, will be directed towards another loan (loan number eight).
"After 1 month your loan of ₹11,000 will be closed. So that ₹10,000 will now be empty with you. When those ₹10,000 are empty, then you can start giving those ₹10,000 to the relative with loan number eight so that he feels that now it has started getting repaid and it will be repaid in a few days, so after 3 months of loaning ₹10 every month, your ₹10 committee will also get exhausted, so now you have ₹10,000"
Incorrect
Within approximately 3 years (34 months), all loans except the home loan and a ₹15 lakh loan are projected to be repaid.
"After doing all this, friend, and I will tell you how much time has passed. Because that is a very important consideration. 34 months have passed. Meaning it has been 3 years. And after 3 years, if you follow this process, all your loans except your home loan and the loan of ₹15 lakh will be repaid."
Correct
The strategy outlines the repayment of a ₹1 lakh loan in 4 months, followed by a ₹157,000 loan in 5 months, using the freed-up funds from previous repayments.
"Now you have ₹20,000. With that ₹20,000, you can start repaying your loan of ₹1 lakh. So it will be repaid to you in about 4 months. So clear loan four in 4 months. Now you have ₹30,000. With that you can start repaying the loan of ₹1600 or ₹157000. So you need a clear loan of six in 5 months."
Pending
After 3 years, the speaker recommends splitting the newly available ₹50,000 monthly surplus: ₹25,000 for investment and ₹25,000 for accelerating repayment of the remaining two loans.
"At that point my friend after 3 years you will be 30 you should make a distinction. How will I start using this ₹50,000 now? Path number one will be I will start investing ₹25,000 out of this 50. Because I now need to build the stability and the future of not just me but my entire family. So I will start investing ₹25 every month and this will be at after 3 years and the remaining ₹25,000, I will use to prepay the current loans which are only two loans."
Pending
Following the outlined repayment plan will result in all loans, except the home loan and the ₹15 lakh loan, being cleared within 3 years (34 months).
"After doing all this, friend, and I will tell you how much time has passed. Because that is a very important consideration. 34 months have passed. Meaning it has been 3 years. And after 3 years, if you follow this process, all your loans except your home loan and the loan of ₹15 lakh will be repaid."
Pending
Starting to invest ₹25,000 per month at age 30 is advised, emphasizing it as a family investment due to pooled income.
"If you start investing ₹25,000 per month at the age of 30, it will not be just you but the entire family's investment because right now we are doing it by pooling in the income of the entire family."
Pending
Future expenses, including potential marriage in two years, will be managed by an increase in income and the unlocking of savings after the primary debt is cleared.
"So what about expenses in the near future and I am not married yet so that means it may be in two years absolutely and all of those will be taken care of by either of these two things an increase in income and as your savings keep getting unlocked it is possible that you will be like that yaar this ₹50000 we will start earning after 3 years or ₹40000 after 2 years."
Pending
The speaker suggests saving a portion of income monthly for potential future expenses, indicating a shift towards proactive financial planning.
"But by saving a little every month, I will start saving for an expense that may happen in the future."
Correct
A potential future strategy involves allocating ₹20,000 towards loan prepayment and ₹10,000 towards additional investments.
"I will invest 20. I will put ₹20 towards prepaying the loan and spend ₹10,000 towards additional investments."
Pending
A strong warning is issued against repeating past financial mistakes, emphasizing the importance of family education on financial responsibility to prevent recurrence.
"The most important thing is that friend, do not repeat the mistakes again. I know that you have not made all these mistakes. But even if someone who is a part of the family, it is your duty to handle this situation with whatever struggle, make it real and sit with everyone and sensitize them that we have reached this point because we have made mistakes. But if they repeat those mistakes, they will reach the same point again."
Pending
If savings increase to ₹40,000 per month, ₹30,000 could be directed towards loan repayment, potentially clearing them in four years instead of three.
"Or out of this ₹40,000 that I am saving, I will put ₹30000 towards clearing the loan. And I will clear the loans in a slightly larger fashion. So instead of 3 years, I will probably clear this loan in four years."
Pending
Achieving a financial surplus provides flexibility and confidence to make decisions regarding investments, loan prepayment, or other expenses, which is not possible when in a precarious financial state.
"When you have surplus, Siddharth, then the flexibility and the confidence to play with it will start coming. Now you literally hear what you understand. Like water is exactly here. You are able to breathe a little. But if anything moved anywhere, it started sinking. So do it slowly, first get yourself out of that stage. Because after that even if it is ₹50000 per month, it will become your surplus. The decision on where to spend that ₹2000. Does it have to be invested entirely in the loan? Do I want to invest ₹10,000 out of that? Do I have to buy insurance of ₹5,000 from that? At least there is confidence and option to take all these decisions."
Correct
It's crucial to learn from past financial mistakes to avoid repeating them and to educate family members to prevent them from falling into the same debt trap.
"The most important thing is that friend, do not repeat the mistakes again. I know that you have not made all these mistakes. But even if someone who is a part of the family, it is your duty to handle this situation with whatever struggle, make it real and sit with everyone and sensitize them that we have reached this point because we have made mistakes. But if they repeat those mistakes, they will reach the same point again."
Unrated
The speaker plans to fully repay a 2 lakh loan from a relative by May.
"My target for the next month is that as I told you, there is a loan of 2 lakhs from my relative, that is my target for the next month, like starting up to fifth, I will complete it by May."
Pending
It is advised to immediately clear credit card loans due to extremely high interest rates (35-40%).
"My advice is that you should clear your credit card loans immediately. Why? Because their interest is 3540%."
Correct
The speaker's advice is to use the saved ₹1,30,000 to immediately pay off two credit card debts totaling ₹74,000 (32,000 + 42,000).
"The most expensive and smallest debt you have right now is your two credit cards. 32,000 42,000 So the ₹1,30,000 you have saved. My advice is that you should clear your credit card loans immediately."
Correct
The speaker recommends paying off a ₹50,000 portion of a ₹2 lakh personal loan (loan number 8).
"So you can pay off 50K to 2L personal loan. Ok? Which is loan number at. I have numbered all the loans. So that's why I have written it as loan number eight."
Pending
After a loan of ₹11,000 is paid off in one month, the freed-up ₹10,000 should be directed towards repaying loan number eight (part of the ₹2 lakh loan).
"After 1 month your loan of ₹11,000 will be closed. So that ₹10,000 will now be empty with you. When those ₹10,000 are empty, then you can start giving those ₹100 to the relative with loan number eight so that he feels that now it has started getting repaid and it will be repaid in a few days"
Correct
Once the ₹10,000 committee investment is finished in 3 months, the freed-up funds (now totaling ₹20,000) should be used to repay a ₹1 lakh loan from a relative over the following 5 months.
"So after 3 months of loaning ₹10 every month, your ₹10 committee will also get exhausted, so now you have ₹00, by that point ₹1 lakh of this relative has already been exhausted. Yes. So now you will start giving them ₹0000 every month so that their entire loan gets repaid in the next 5 months."
Pending
A loan that was initially projected to be finished in one month will now be repaid gradually over 10 months, presumably by redirecting freed-up funds.
"So the loan that you were going to finish next month, you will repay it by gradually paying the money every month over 10 months."
Pending
After 10 months, the speaker estimates a monthly saving capacity of ₹27,000, considering freed-up funds from previous loans and existing interest payments no longer needed.
"Now at this point, after 10 months, you still have this ₹00 left with you. Plus the ₹4000 loan installment that used to be paid every month, sorry, the interest that used to be paid is also left now. Plus ₹3000 which you had in your credit card is also left. This means that now you are able to save around ₹27,000 per month."
Pending
A detailed plan for clearing specific loans (Loan 2, Loan 4, Loan 6) over the next 2, 4, and 5 months respectively, utilizing the accumulating monthly savings.
"Now, with this ₹27,000 that you will save, you will gradually start repaying the remaining loan. So loan number two which is a loan of ₹00, you were paying only the interest on it, so its principal is still left, so within 2 months that principal will also be gone, so clear loan two in 2 months now you have got ₹28000. With that ₹28,000, you can start repaying your loan of ₹1 lakh. So it will be repaid to you in about 4 months. So clear loan four in 4 months. Now you have ₹00. With that you can start repaying the loan of ₹1600 or ₹157000. So you need a clear loan of six in 5 months."
Pending
After 34 months (approximately 3 years), all loans except the home loan and the ₹15 lakh loan are projected to be repaid, assuming no income increase.
"Now you are getting ₹41,000 every month. Still I am assuming that there has been no increase in your income. It is exactly the same income. If you find any surplus anywhere, of course pay it. Sir but 41,000 if you have surplus coming then you pay loan number nine which is ₹.5 lakh so clear loan in 2.5 46 months now you are getting ₹46,000 every month and you will clear loan number 10 now. Loan 10 in 10 months. After doing all this, friend, and I will tell you how much time has passed. Because that is a very important consideration. 34 months have passed. Meaning it has been 3 years. And after 3 years, if you follow this process, all your loans except your home loan and the loan of ₹15 lakh will be repaid."
Correct
After 3 years, with a surplus of ₹50,000 per month, the plan is to invest ₹25,000 and use the remaining ₹25,000 to prepay the ₹15 lakh loan.
"At that point my friend after 3 years you will be 30 you should make a distinction. How will I start using this ₹00 now? Path number one will be I will start investing ₹25,000 out of this 50. Because I now need to build the stability and the future of not just me but my entire family. So I will start investing ₹25 every month and this will be at after 3 years and the remaining ₹25,000, I will use to prepay the current loans which are only two loans. Start paying off the loan of ₹15 lakh."
Pending
Investing ₹25,000 per month at age 30, as a family effort, will lead to a significantly improved financial position compared to the current situation.
"If you start investing ₹25,000 per month at the age of 30, it will not be just you but the entire family's investment because right now we are doing it by pooling in the income of the entire family. You will still be in a far better spot than where you are right now"
Correct
Future expenses (like marriage) will be managed by potential income increases or by adjusting the investment/loan repayment split from the ₹50,000 monthly surplus, possibly shifting to ₹20,000 for loan repayment and ₹30,000 for investments if needed.
"So what about expenses in the near future and I am not married yet so that means it may be in two years absolutely and all of those will be taken care of by either of these two things an increase in income and as your savings keep getting unlocked it is possible that you will be like that yaar this ₹00 we will start earning after 3 years or ₹400 after 2 years. I won't be able to do 25-25 of this. I will invest 20. I will put ₹20 towards prepaying the loan and spend ₹10,000 towards additional investments."
Pending
It is crucial to avoid repeating past financial mistakes and to educate family members about the consequences of those errors to prevent future debt accumulation.
"The most important thing is that friend, do not repeat the mistakes again. I know that you have not made all these mistakes. But even if someone who is a part of the family, it is your duty to handle this situation with whatever struggle, make it real and sit with everyone and sensitize them that we have reached this point because we have made mistakes. But if they repeat those mistakes, they will reach the same point again."
Pending
The speaker has written a book for individuals aged 24 who are confused about their career path, offering practical and relatable advice.
"My fourth book on career is written in a very simple, very relatable, very practical way. I wish someone had given me this book when I was 24 years old and completely confused about what to do about my career? What direction should I take in my life? I have written this book for that same 24 year old Ankur. It is written for you."
Correct