Case Study 09: “Lost Job, Rising Debt – How She Took Back Control”
Background
Priya, a 29-year-old marketing executive, was earning ₹45,000 per month in a metro city. She had multiple EMIs – a personal loan of ₹4.5 lakh, a credit card bill of ₹1.2 lakh, and an education loan EMI of ₹6,000. Everything was under control until she suddenly lost her job during a company restructuring.
The Problem
- Within two months, Priya’s savings were nearly gone.
- Credit card companies began calling daily, demanding payment.
- The personal loan EMI bounced twice, leading to penalty charges.
- She was scared of legal action and didn’t know her rights.
How Lawfully Finance Helped
- Debt Analysis: We reviewed all her EMIs, interest rates, and due dates to identify the most critical debts.
- Bank Negotiation: We helped her approach the personal loan bank for a temporary EMI moratorium.
- Credit Card Settlement: We guided her in negotiating a reduced settlement amount with the credit card company by showing proof of unemployment.
- Legal Awareness: She learned how to handle recovery calls confidently without falling for intimidation tactics.
- Budget Reset Plan: We helped her create a strict expense plan and guided her to take freelance work to cover essential payments.
Results After 4 Months
✅ EMI moratorium approved for 3 months, avoiding further penalties.
✅ Credit card debt reduced from ₹1.2 lakh to ₹85,000 via settlement.
✅ No harassment calls after she exercised her rights.
✅ Started building a side income that continued even after getting a new job.
Key Takeaways
- Job loss doesn’t have to mean financial collapse – early action can prevent the worst.
- Always inform banks about genuine hardships before defaults pile up.
- Knowing your rights is the best shield against harassment.