Devang has not provided a solution. The goal is to clear the debt and get out of the debt trap. It would be difficult to clear off the dues in a year considering the current income and expense levels. The right way is to phase out the costliest loan first and then retire the low cost loan. Based on this idea, credit card outstanding would be the first to be attacked and killed. In order to do this it could also be advisable to take a personal loan probably at a cost that is half the cost of credit card loan and it would be paid on a monthly basis so that you have a defined period of repayment. As for the cash loan, in case it is a soft loan, then it could be paid off when you receive the incentive else also incorporate the same with the personal loan. The base idea is the same as what Devang has mentioned Live within your means and be disciplined. Raghu must put a complete embargo on his expense levels for the period of loan repayment. Even after the loans has been repaid, he must consult with a financial planner and set a realistic savings / investment targets so that assets can be created in a systematic manner.
