Menu
Search

Understanding Debt Consolidation in Personal Financial Management

By SiliconIndia   |   Tuesday, April 24, 2018   |    1 Comments
44
Separator
33
Separator
46
Separator
7
Separator
Print Print Email Email

Preface: The Indian national debt stands at $1,158,291,702,000 +, courtesy of data provided by the Indian government. This figure amounts to an average debt per citizen of $874, with interest per second of $2,389, and interest per year of $75,234,183,750. In India, debt makes up 51.26% of the gross domestic product, and with a population of 1.325 billion people, this is a significant debt burden.

Debt has always got a bad rap throughout history. Whether individuals or families are racking up debt for the purposes of purchasing a home, financing tertiary education or investing in businesses, debt is considered a necessary evil by many people.

In the United States, treasury bonds and notes comprise the bulk of national debt which is standing at around $20 trillion. The St. Louis Fed recently indicated that debt is approximately 103% of GDP – a shocking indictment of the borrow now, pay later nature of US consumers. This is similar in many countries around the world, including the subcontinent where debt is placing the increasing burden on the populace.

Understanding Debt Consolidation in Personal Financial Management

At the microeconomic level, individuals and households should not spend more than they are taking in, yet at the macroeconomic level, this appears to be ignored. Debt/GDP ratios should ideally be much lower than they are, to prevent runaway inflation, excessive borrowing and refinancing of debt burdens.

How to Take Control of Personal Debt?

Personal debt problems begin when a person has larger financial commitments than revenue streams. These types of problems are not limited to low-income earners – they are endemic throughout society. Consider the case of one of the most respected Hollywood writers, producers, actors and celebrities – Tyler Perry. Here is the story of a man who came from nothing. He was abused, homeless, and struggling to survive.

Yet Tyler Perry went on to become one of the most respected international celebrities, writers, producers and directors. Today, Tyler Perry is worth an estimated $400 million +, and he lives in a resplendent Beverly Hills mansion. In California, the share of homeless people living in the state is 6% +, much the same as it is in Florida and New York. This problem is largely due to financial mismanagement, lack of education, and lack of resources to turn things around.

A Savings Plan Is a Get Out of Debt Solution

The Tyler Perry paradigm could be any one of us. For celebrities like Tyler Perry, life was not always so good – he struggled to become all that he could be. Repeated failures did not deter him from his goals. There are life lessons that can be learned from managing one’s personal finances more effectively. By saving as much is possible, focusing on singular objectives, having the necessary self-belief, and understanding the markets, it becomes much easier to transform your life for the better.

Saving is a prerequisite for capital formation. Saving is a form of sacrifice in the present, for a better life in the future. It is the bedrock upon which a brighter future is built. Tyler Perry’s story can be applied to everyone, since the elements that characterized his poverty are widespread around the world. Perhaps the most important sentiments expressed by Perry are the following: ‘Being poor is expensive… Avoid getting into debt and start saving and building an emergency fund.’

Leading financial planning platform DebtConsolidation wrote an in-depth expose into Tyler Perry (From Rags to Riches). According to Perry, repeated failures are not the end of one’s aspirations – they are part of the learning curve. A single-minded focus is sacrosanct. If a person nurtures an idea and provides the necessary care and dedication to that idea, it will grow. In Perry’s words: “Don’t stop. Narrow your focus to one idea. One. And make it work. That will give birth to all the others.” A final word of advice is never to spend what you won’t be able to repay. These are the lessons that make financial freedom possible.

Read More News:

Understanding How Home Loan Interest Rates Work in India?

Yumlane Mints $4 Million Series A from RB Investments & Orios


Write your comment now
Submit Reset
Reader's comments(1)
1: Do you need a financial help? Are you in any financial crisis or do you need funds to start up your own business? Do you need funds to settle your debt or pay off your bills or start a good business? Do you have a low credit score and you are finding it hard to obtain capital services from local banks and other financial institutes? Here is your chance to obtain a financial services from our company. We offer the following finance to individuals- *Commercial finance *Personal finance *Business finance *Construction finance *Business finance And many More: and many more at 3% interest rate; Contact Us Via Email: financeloan71@gmail.com
Posted by:Wilfred - 24 Apr, 2018
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit