General Knowledge · General Awareness
An individual is struggling with multiple high-interest uncollateralized loans (such as credit cards with 42% per annum interest and personal loans) alongside long-term secured loans. Which of the following is the most strategically and mathematically sound move to reduce financial stress and interest outgo?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Sell long-term ancestral asset immediately to clear all debts and invest the balance in high-risk equities.
- 2Avail a low-interest Debt Consolidation Loan against property to pay off the high-interest credit cards and personal loans, thereby reducing the net monthly interest burden.✓
- 3Withdraw long-term retirement funds (like Provident Fund) entirely to pay off credit cards while leaving personal loans untouched.
- 4Continue paying only the minimum due on credit cards and take additional personal loans to cover daily expenses.
Correct answer
Avail a low-interest Debt Consolidation Loan against property to pay off the high-interest credit cards and personal loans, thereby reducing the net monthly interest burden.
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