- A woman seeks advice to settle her parents' Rs 70 lakh debt from salon business losses
- Salon business in Delhi's Rohini has Rs 8.94 lakh monthly turnover but high monthly expenses
- Monthly costs include salaries, rent, EMIs, supplies, and household expenses totaling Rs 7.85 lakh
A woman has sought the internet's help on how to settle her parents' staggering Rs 70 lakh debt, which they had accumulated despite running a business for the last 15 years. In a social media post, the daughter, 21, detailed that her parents were running a salon in Delhi's Rohini and despite a monthly turnover of Rs 8.94 lakh, they were unable to make enough money to pay off the spiralling debt.
"I'm 21 and really worried about my family's financial situation. My parents are currently around ₹70 lakh in debt, and it feels like we're barely staying afloat," the user wrote in a Reddit post.
According to the woman, the family's monthly expenses totalled approximately Rs 7.85 lakh. This included Rs 3.5 lakh for salaries, Rs 1.3 lakh for shop rent, Rs 1.15 lakh for EMIs and credit card payments, Rs 1 lakh for salon supplies, Rs 50,000 for household miscellaneous costs, and Rs 40,000 for residential rent.
"On paper, it looks like there's some money left over every month, but somehow the debt never seems to go down. A lot of the debt includes loans, credit card balances, and other liabilities accumulated over the years," she said.
Seeking guidance, the woman asked whether her family should prioritise generating more income or slashing expenses to pay down the debt in the next three years.
"I want to help my parents and I'm willing to do whatever I can, whether that's helping with marketing, social media, finances, or something else. I just don't know where to start."
Check The Post Here:
My parents are ₹70 lakh in debt despite running a salon for 15 years. How do we get out of this?
by u/moongel25 in personalfinanceindia
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'Pay Off High-Interest Loans'
As the post gained traction, social media users highlighted that the individual needed to first assess the debt and, if possible, consolidate in one place while attempting to squeeze more money from the salon by upselling services.
"First priority is to pay off the high-interest loans. Cut your nonessential expenditures at least for a year. Try to be frugal," said one user, while another added: "Download credit report from Experian (1st one is free), it'll give you the broader picture. You all need to decide whether to go for a settlement or a loan consolidation. Things will get much harder if not managed properly right now."
A third commented: "Have your parents tried to restructure the debt? I guess if that can be brought under one roof, the situation can get much better, maybe your interest might come down a bit, and the loan tenure and monthly EMI can be slashed down."
A fourth said: "Upsell treatments and packages, raise prices where possible or keep existing prices as it is and start offering more premium packages."
