Is debt a personal liability?

pramalkumarsamanta By pramalkumarsamanta, 18th Jun 2015 | Follow this author | RSS Feed | Short URL http://nut.bz/1_idomy6/
Posted in Wikinut>Money>Debt

Debt is a burden on the family if it is self created or thrust upon an individual all of a sudden , creating mental disturbance .The debtor does not find a way out how to resolve the issue of debt burden in spite of best efforts within the existing resources of the family. .

Introduction

A man starts his family life with a limited source of income..As the family grows,the demand for money increases. He tries to enhance his source of income by any means.. He becomes interested in procuring easy money from easily available credit cards from the banks. without going into its details of terms and conditions. Credit cards are issued in the form of unsecured loans with high interest rates. These cards are very good so long as the payments are made by due date in a regular manner. But if the payments are held up due to valid reason for a considerable period of time , the dues become so heavy , that it becomes difficult to clear all the pending dues by the scheduled date of a month. The banks then take stock of the situation and try to exercise pressure upon the customers to clear the outstanding bills. If any customer holds multiple credit cards to enjoy the life, if the customer pays the dues in time, then there will be no problem for using the cards. Holding multiple cards and payment of dues are not regular , it is really difficult to manage all the credit cards to be kept in order . That is the beginning of the crux of the problem of debt burden. The overall impact is that the banks have withheld all the facilities of using the cards and there is no way out to come out of such difficult situations.

Repayment of loans in E.M.Is

If approached , some of the banks may consider sanctioning the personal loan of a certain amount with a fixed rate of interest which is lower than the rates of interest applicable to the credit cards. The personal loan ,if sanctioned may clear the outstanding dues of credit card. The personal loan is sanctioned on the basis of certain primary financial documents. and payable easily in E.M.Is .for a fixed certain period of time.So immediate tension is relieved to some extent.Multiple personal loans may solve the issues of outstanding dues of all credit cards .But the issue of personal loans are yet to be resolved by judicious planning. It is better to club together all the personal loans in a single loan so that the money squandered in paying the E.M.Is is saved, provided there remains a strong financial background. It is needless to say that once in debt. will not remain in debt if he has a strong will power and mental strength to fight out the crisis created in the pocket of income. These are applicable to those who are salaried employees and businessmen.

Conclusion,

Debt is a huge financial liability in the family. Unless the debt is cleared, there will be no mental peace and sleep. If this situation is critically analyzed. no immediate answer will come out. It is also very difficult to blame any member of the family, It is his own creation or the situation has been so developed that there was no alternative way but to take the loan to meet up the crisis thrust upon him Thus the debt has befallen him.

Tags

Credit Cards, Crux Of The Problem Of Debt Burden, Debt, Financial Liability, Outstanding Dues, Personal Loan

Meet the author

author avatar pramalkumarsamanta
I am a retired government officer.I am a postgraduate in life sciences, I have a passion for writing on any topic.

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Comments

author avatar brendamarie
19th Jun 2015 (#)

debt because of credit cards is a huge problem in the Untied States. It is a huge liability the rates tend to be high and are hard to pay back.

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author avatar pramalkumarsamanta
20th Jun 2015 (#)

Thanks for supporting the views contained in the article.

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author avatar Retired
20th Jun 2015 (#)

Great and detailed info-thanks for sharing!

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author avatar pramalkumarsamanta
20th Jun 2015 (#)

Thanks for encouraging remarks. Thank you very much.

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author avatar Sivaramakrishnan A
23rd Jun 2015 (#)

Once bitten, twice shy - I did take loans against my cards and it led to loss of peace of mind. I managed to pay off asap and luckily have stayed away from this issue - siva

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author avatar pramalkumarsamanta
23rd Jun 2015 (#)

Thanks for sharing your experiences.

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author avatar Carol Roach
24th Jun 2015 (#)

debt can be a real burden for sure

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author avatar pramalkumarsamanta
24th Jun 2015 (#)

Thanks for reading the article.Thanks for supporting the views.

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