Zero Debt is a condition which depicts ‘financial freedom’ for a person or entity. In other words, Zero Debt refers to the status of being free from any type of loans, debts and other types of financial obligations from other parties. Copy the link given below and paste it in new browser window to get more information on Zero Debt:- www.transtutors.com/homework-help/finance/zero-debt.aspx

1. Zero Debt

2. Meaning of Zero Debt
Status of being FREE
from any type of loans and financial obligations
Why debt is a burden?
We seek borrowings when we are short of funds. However, poor
financial management will result in difficulties in finding a repayment
source and servicing debts together with interest. Unfavorable changes
in market factors also make debt a burden.

3. Benefits of Zero Debt
• You start to focus on your Core Goals & Objectives –
Worrying over debt burden in Non-Core
• You live a Stress Free Life – No one is going to chase you
behind
• You operate within your set Budget – Your money and your
way of life
• Better credit profile – You maintain your good image
reputation

4. Determining Zero Debt
Total Capital = Equity  Debt free; ie. Zero debt
Total Capital = Equity + Outsider’s liability  Debt

5. How to maintain Zero Debt
balance?
SIMPLY, Plan and Manage your Resources and Obligations
Effective Methods
• Set a Budget & Pre-plan – Prioritize your needs
• Control your Spending – Spend in the order of importance
• Debt Consolidation – Pay off all other debts and manage one

6. Zero Debt in 90 DAYS
Check the reviews of these programs and consultancies before trusting
and following them.
Reviews can be checked online or understood from real experiences of
people you know.
Several Programs and
Consultancy Service Providers
assist for;
• Zero Debt in 90 days
• Cost control
• Financial management

7. Zero CREDIT CARD Debt
Credit card is to get a credit. However, with
• Proper planning of spending,
• On time payments,
• Limiting its usage only when it is absolutely essential,
• A credit card consolidation loan to clear off the debts
would help for a Zero Credit Card Debt
Reasons for increasing Credit
Card Debt are -
• Possibility of getting credit cards
with little limitations
• Promotions and Offers on credit
cards
• ‘Minimum Payment Due’ facility

8. Zero NATIONAL Debt
It is not really feasible for a country to have Zero National Debt.
However, productive usage of borrowed funds will enable faster
repayment and reduce the burdens on ‘corporate units’, ‘family
units’ and ‘individuals’.
Any Government borrows
for 2 reasons -
• Finance public needs
• To service the earlier debts
When will the Government
finish repaying debts?

9. Zero Debt COMPANIES
 Gearing ratio – is the measure of debt level of a company
 Shareholders (to improve their return) and Potential Investors
(to ensure repayment and good return) prefer low debt or even
Zero debt
 However, debt capital is Less Expensive and creates Tax Savings
 Striking a balanced gearing ratio would be beneficial for
companies
END
GOOGLE survived with a Zero
Debt Book, due to its excellent
management of Cash Flows.

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