Debt management getting fiscally fit

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: “Till debt do us part”. While this was intended to be the first line of a witty opening to the grave topic of debt management, somehow, making digs by comparing marriage, credit and death doesn't seem so appealing anymore. The numerous heart wrenching and tragic-stricken stories about debt-affected families and often their sole bread earner committing suicide, would only tarnish their souls further if one were to still take such things lightly. The newly released movie EMI, starring Sanjay Dutt as “Sattar bhai” a recovery agent, too, talks about loans and credit card defaults, highlighting this new social problem in urban India. The controversial and much-feared recovery agents if one recalls, are amongst those that have increased hospital charges and suicide rates alarmingly in the past.

A month ago in Mumbai, Sudhir, a 42-year-old engineer and his elder sister Suchitra age 46, and a deputy general manager at BHEL, were found dead at their home. Their parents were also found dead in their own room and a suicide note, which stated that the brother-sister duo had killed their parents and then themselves.

The reason, the siblings had 72 credit cards between them, a huge outstanding debt, a personal loan of Rs 8 lakh and from the looks of it, no way out of this tricky situation. While debt-related suicides were rare, except amongst farmers in rural India, and the occasional broken businessman, stock broker or tarnished highflying corporate one read of in the city, the recent spate of events are too close to home for comfort.

Debt at times is a necessity, at times a boon, a lifeline in cases and above all, it is very convenient to say the least. It, like all other things has both good and bad sides. However, by understanding the bad sides enough to take adequate precautions, one can enjoy the benefits of taking loans, swiping credit cards and taking other forms of debt, while continuing to use it for the convenience it was intended to provide. “Debt is not something to be taken lightly, manage it prudently if you must have it all. I personally in all my years of business have just one credit card in my name, which too I keep more so for emergencies” said a senior businessman.

The debt trap