Got a question about your money? What you should or should not do with it?

Our expert Devang Shah has the answers. Got a question? Please write to us.

I purchased a car with a loan. My gross salary is Rs 10,000 per month but my take home is just Rs 8,000. My EMI for the car is Rs 7,029 per month.

I am living in debt � thanks to my credit card. Now should I come out of this soup?

- Uday Shirur

Hi Uday,

I have to admit my apprehension. Your situation does not look good at all.

By the time you finish repaying your car loan, your car value would have depreciated substantially and your credit card debt would have increased dramatically.

When you bought the car, you must have made your decision based on some calculation which would allow you to repay the loan, pay for your car's maintenance as well as sustain your other personal expenses. I don't think you would have bought a car knowing that you have to shell out around Rs 7,000 when you take home just Rs 8,000.

Has your pay packet been reduced? Were you expecting a fat raise which did not come through? If that is the case, maybe you should consider looking for a job change.

In a worst-case scenario, you might be in a better position by selling your car and repaying your loan (if the value allows you to get a good rate).

Do you have any other assets that you can sell?

You will need to make some detailed calculations because credit card loans are very expensive.

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