Personal debt management a study related to urban households debt servicing burden

Abstract

A LOAN MAY BE BORROWED TO BUY A HOME, BUY A CAR, PAY THE FEE FOR HIGHER EDUCATION, PAY OFF PREVIOUS LOAN/S OR MAY BE TO FINANCE A WEDDING AND SO ON. OFTEN THERE ARE INDIVIDUALS/ HOUSEHOLDS WHO AT TIMES FAIL TO MEET THE PAYMENT DEADLINES ON THEIR DEBTS AND THEREFORE HAVE TO BEAR THE BRUNT OF PENALTIES IMPOSED ON THEM BY THEIR RESPECTIVE LENDERS. THE STUDY WAS CONDUCTED WITH AN AIM TO FULFILL THE FOLLOWING OBJECTIVES: TO ANALYZE THE VARIOUS FACTORS DUE TO WHICH INDIVIDUALS CHOOSE TO BE INDEBTED, TO ANALYZE THE VARIOUS REASONS DUE TO WHICH BORROWERS DEFAULT IN REPAYING THEIR DEBT, TO FIND WHETHER THERE EXISTS ANY DIFFERENCE BETWEEN THE ESTIMATED COST OF BORROWING AND THE ACTUAL COST PAID BY THE BORROWERS AND TO CONSTRUCT A MODEL FOR BORROWERS THAT MAY HELP THEM IN JUDGING THEIR REPAYING CAPACITY. newlineTHE DESIGN OF THE RESEARCH IS BOTH EXPLORATORY AND DESCRIPTIVE. FOR THE PURPOSE OF THE RESEARCH, HOME LOANS, VEHICLE LOANS, EDUCATION LOANS, PERSONAL LOANS AND CREDIT CARDS WERE TAKEN INTO PERUSAL. THE STUDY MADE USE OF INFORMATION COLLECTED FROM PRIMARY AS WELL AS SECONDARY DATA SOURCES. THE RESEARCHER RESORTED TO A CHOICE-BASED OR CONVENIENT SAMPLING APPROACH FOR SELECTING THE RESPONDENTS FOR THIS SURVEY. newline newline