Debt Reduction

The legal age to start earning money is 14 in India, with a condition that the student cannot work during school hours. One can start earning money online, through internships and/or via freelancing jobs.

Ideally, people start their employment in their early 20s. Before that, pocket money can be saved to understand money management. A tip-over saving your money: Saving what is left after spending may bring in jumps, however, savings first and setting a goal on expenses can be helpful.

Credit report in India is generated by several Credit Information Companies (CICs and third party companies). The name of the report generated is CIBIL - Credit Information Bureau of India Limited.

The credit report consists of your payment history of 3 years before it has been issued. Added information like citizenship proof, contact information, employment information, account details, and inquiry application is asked for generating this report. This score is ranged from 300 to 900, and a score above 750, explains that money management is great. Once the credit score is above 750, the chances of you getting a loan from a bank also rise.

There are several ways to improve your credit score. Listed below are some of the proven solutions: • Paying bills on time, • Clearing debt and opting for a longer tenor after taking a loan, • Maintaining older credit cards, • Customize credit limits, • Avoiding too much debt at once, • Creating credit history by allowing different forms of credit.

Debt Management Plans or DMPs are a type of debt repayment scheme which are set up by credit counselling agencies. They offer and educate people, on how to manage better in terms of finance. The goal of a DMP is to have your debt fully repaid within a period.

Yes, very much. This is beneficial for the people who try paying off their debt, but the bank balance never seems to adjust according to their needs. With a DMP you can allow yourself to manage and pay off the debt within a shorter period. Along with the professional advice, the counsellor manages all the calls and bargains on excessive fees, helping you to assess down your debt with fewer fees.

Debt consolidation is the act that refers to take more loan, in order to pay off other debt and liabilities.

Debt settlement is a service offered by debt relief companies to reduce your debt by negotiating settlements with your lenders. There are chances that you can fall into more debt, so beware of that by looking into the fee structure of your agency.

Debt reduction is the process of reducing your debt by the general idea of a financial approach. It can also be explained as the process of paying back a part of the debt.

Insolvency is a state of financial distress when a person is unable to pay off their debt and is no longer able to meet their financial needs. This situation can also arise for companies because of their poor cash flow. Insolvency may also lead to the debt trap

Financial distress occurs when the inflow of income is not able to meet the outflow of the expenses or loans.

Did not find what are you looking for?

Post your question here.

Scroll to Top

Simply fill in the form and get your personal copy of the eBook right away!

You are just 1-step away from receiving a personal copy of our eBook – Smart Money Management – A Secret Mantra for financially secure and fulfilling life!
Simply sign-up and we will send you a copy right away!

*All fields required. By signing up you agree to receive communications from MyDhan. To know more check T&C and Privacy Policies.

You are all done! eBook has been sent to your email id.

What Personal Finance areas excite or concern you the most?

(Please select one or more to submit)

*P.S. Don’t forget to check your email for industry tips and trends and updates on the MyDhan app launch!