Case Study 2: Personal Debt Programme – (PDP)

A 32-year-old postgraduate from Kolkata, married with two children was struggling to pay his EMI, he had four credit cards and one personal loan. He has a very good job with a salary of ₹1,80,000 per month.

He is in rented accommodation with his family and elderly parents, who with his wife became ill and due to their medical expenses and care was struggling to service his debts.

He had debts totalling ₹16,60,000 and was paying ₹50,920 EMI per month, but due to the medication and medical care his monthly
household expenditure increased to ₹1,51,000.

He had approached us to help him find a solution to his current position. After our initial free counselling, we were informed that he had some funds that he was expecting in four months’ time, but the fund was not sufficient to repay all his debts.

We worked out a settlement plan whereby we would negotiate a settlement figure for all his credit cards which had an outstanding of 10 lacs, and were charging him the most interest, and in the meantime, he enrolled onto the PDP.

He was also experiencing undue harassment and with the help of our Advocates was able to subdue this and was able to obtain 70% discount on the settlement from one of the credit card creditors due to their harassment. With the other credit cards, we were able to obtain 50%settlement on the outstanding debts.

When he initially enrolled onto the PDP he was paying ₹25,000 per month, which were distributed to all the five creditors and now after the settlement that amount is paid towards the remaining one creditor.

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