I have loans of about 7.5 lakhs which I have taken from the banks to trade in the share market. All the money is lost and I am in depression. What should I do?
I have been into this situation. In 2010 and 2011. I took a lot of time and years of depression for me and my family to get out if. Not once but twice I busted my big account. I was just out of college with no sense of business. Its a personal matter and I have gotten out of it 3 years back. But know that my amount of loss was much bigger than yours. As of today, I have recovered all that was lost and in overall profit.
I am estimating that your per month EMI should be around ₹11,000/- approximately.
First things first. Know that getting into depression is not going to help you in anyway. There might be people who love you and they will need you more than any thing else.
Second thing, don't borrow more money to trade. In the wrong mindset you will lose it again. In any case do not take help from anyone on trading calls, workshops etc etc to recover money. In the wrong mindset you won't be able to take right decision.
Third thing, in my case we had very good relations with banks and somehow banks were willing to help us. We also had assets like parental land so there was a way out which we didnt knew yet.
Also know that filing bankruptcy won't help. And one more thing, don't ask any prominent person to help you financially. No body will help for your financial goof up.
Now coming to the problem, you need to get a job. Today 11,000 is not a big sum. You need effort from everyone or yourself and if everyone can contribute at home, don't stop paying the EMI's. Don't get into a defaulters tag. Maintain a good credit score somehow. What I did was that I was in job, and on my property i rotated the loan to get out of the defaulters tag. You should not be in default. Else banks won't loan you. My family was helpful and we rotated loan few times. Finally, I decided to cut a colony out of my land. Problems werent solved because land is not a liquid asset. Once people know that you are in trouble, they will negotiate like bitches. But for 4 years I kept my legs burried at my price and finally 2 of my plots went and I was out of debt.
Let me tell you, there are brokers who have special arrangement with bank managers that can get you a loan to rotate for a commision. To handle problem don't take any gold loan as they are the worst kind of easy money. Now this may not be the only option. Talk with some prominent business man in your community who can help you or guide you. Even banks don't want to put you into defaulters tag. I talked with many people that time. And they told me all the businessman rotate money like this. You just need to understand how it works. More than anything you need your friends and familys support.
I rented out my farm many time to raise money on yearly basis.
While doing all this, try to build something that over time can bring in cashflow to you. What it can be, only you know.
As of now
I have cut a colony I don't need to sell.
On same farm, I have a drug de addiction center that is bringing in cash.
I trade and earn handsome from it. I save and compound the rest.
I have a brokerage firm where customers trade and it generates cash.
I do trainings via skype on satrday and Sunday and it helps bringing in cash.
I invest every month some of my profits so that money is working over night and i again trade with margin provided against shares too.
3 years back when my problems were about to finish, i did not have slightest of idea how I will turn things around. You never know how life will turn out.
But you gotta be ready to fight this situation. No body is going to help you. Only you can. People will pity you but won't help you. Only you can. Just find a job even if its insurance where incentives are pretty good. Don't get a defaulters tag. Take help from family members to contribute a little. And keep looking via learning our financial system. There is always a loophole or a legal way. Problem is not the problem, but our atitude towards the problem.
Once you are out of, do whatever the hell you want to do.