This document discusses personal debt management and provides tips for managing debt. It covers the meaning of debt, common causes of debt like poor money management and medical expenses. It also discusses types of debt like secured, unsecured, revolving, and installment debt. When deciding to borrow, factors to consider include loan amount, interest rate, credit score, and ability to repay. Methods for eliminating debt include refinancing, paying more than the minimum, shortening the loan term, and examining your budget. The document concludes with an overview of how to manage debt, including listing debts from smallest to largest and paying off the highest interest debts first.

1. Personal Debt Management
Submitted by-
• Shubham Chore
• Siddhant Pote
• Saurabh Mandhani
• Vaishu
• Varun Joshi
• Vijay Pable
• Vishakha
• Vishant
• Yash Dalal
• Yash Khadke

2. Topics…
1. Meaning
2. Causes of Personal debt
3. Types of Debts
4. Know when to borrow
5. Factors to consider to borrow
6. Credit score
7. How to manage personal debt
8. Ways to eliminate debt
9. Credit Card

3. Meaning

4. Why do people take debts ?
Failing
to
Budget
Using
Credit to
Cover
Vacation
Costs
Co-
signing a
Loan
Always
Saying
‘Yes’ to
our Kids
Using
Credit to
Pay
Debts
Borrowing
to Fund a
Business

5. Causes of Debts
• Poor Money Management
• Medical Expenses
• Banking on Windfalls
• Not Saving
• Not Cutting Expenses When Income is Reduced
• Poor Money Management
• Medical Expenses
• Banking on Windfalls
• Not Saving

6. Types of Debts
Secured Debt
Unsecured Debt
Revolving Debt
Installment Debt

7. Know When to Borrow

8. Factors to consider to borrow Personal Debt
Loan
amount
and Tenure
0
1
Credit
Score
0
3
Rate of
Interest
and other
Charges
0
2
Processing
& other
charges
0
4
Income in
relation to
monthly
EMI
0
4

9. Credit Scores
Credit Score
use
What is Credit
Score ?
Range of Good
Credit Score

10. Ways to eliminate debt
Refinance debt in
other banks
Pay more own
Contribution
Pay more than the
minimum payment
Ways to
eliminate
Debt
RE- examine your
Budget
Shorten the Length
of your debt

11. Credit Cards
• Examples-
• Bajaj Finserv RBL Bank Credit Cards
• Axis Bank Credit Cards
• SBI Credit Cards
• Citibank Credit Cards

12. Features and Benefits of Credit Cards
• EMI Conversion
• Attractive Rewards
• Boost Your CIBIL Score
• Airport Lounge Access

13. How to manage personal debt
• Step 1 : List all debts smallest to largest
• Step 2 : Pay on smallest debts first until paid out
• Step 3 : Once smallest debt is paid, apply money to next
Step 1 : List all debts by order of interest
Step 2 :Pay extra on debt with highest interest rate
Step 3 : Pay highest debt off and apply payment to next highest debt
Snowball Method
Avalanche Method

14. Planning for Today
Preparing for Tomorrow…