To all those who are seeking cheap accomodation, Please try to aviod Karol Bagh area as this is more of a wholesale market and attracts domestic tourists as its cheap. Pleople can be tough in this neighbourhood as its very busy environment.
for the same price you can look into guesthouses and small hotels in south of Delhi or near Cannaught place which is near to museums and traditional places such as Delhi haat (must go) and Lotus temple.
i come from New Delhi and been living in England and US for long. I have advised many people the same thing and it has certainly helped as I want others to have good experience about my country the way I am having here. Take care and have a good & safe trip.
(paying $10 EXTRA WILL SAVE YOU FROM LOT OF HASSELS IN INDIA, SO DONT JUST LOOK FOR CHEAP)