Zero Debt

Meaning of Zero DebtStatus of being FREE

from any type of loans and financial obligations

Why debt is a burden? We seek borrowings when we are short of funds. However, poor financial management will result in difficulties in finding a repayment source and servicing debts together with interest. Unfavorable changes in market factors also make debt a burden.

Benefits of Zero Debt

• You start to focus on your Core Goals & Objectives – Worrying over debt burden in Non-Core

• You live a Stress Free Life – No one is going to chase you behind

• You operate within your set Budget – Your money and your way of life

• Better credit profile – You maintain your good image reputation

Determining Zero Debt

Total Capital = Equity Debt free; ie. Zero debt

Total Capital = Equity + Outsider’s liability Debt

How to maintain Zero Debt balance?

SIMPLY, Plan and Manage your Resources and Obligations

Effective Methods • Set a Budget & Pre-plan – Prioritize your needs• Control your Spending – Spend in the order of importance• Debt Consolidation – Pay off all other debts and manage

one

Zero Debt in 90 DAYS

Check the reviews of these programs and consultancies before trusting and following them. Reviews can be checked online or understood from real experiences of people you know.

Several Programs and Consultancy Service Providers assist for;• Zero Debt in 90 days• Cost control• Financial management

Zero CREDIT CARD Debt

Credit card is to get a credit. However, with• Proper planning of spending,• On time payments,• Limiting its usage only when it is absolutely essential,• A credit card consolidation loan to clear off the debtswould help for a Zero Credit Card Debt

Reasons for increasing Credit Card Debt are -• Possibility of getting credit

cards with little limitations • Promotions and Offers on

credit cards• ‘Minimum Payment Due’

facility

Zero NATIONAL Debt

It is not really feasible for a country to have Zero National Debt. However, productive usage of borrowed funds will enable faster repayment and reduce the burdens on ‘corporate units’, ‘family units’ and ‘individuals’.

Any Government borrows for 2 reasons -• Finance public needs • To service the earlier debtsWhen will the Government finish repaying debts?

Zero Debt COMPANIES

Gearing ratio – is the measure of debt level of a company Shareholders (to improve their return) and Potential

Investors (to ensure repayment and good return) prefer low debt or even Zero debt

However, debt capital is Less Expensive and creates Tax Savings

Striking a balanced gearing ratio would be beneficial for companies

END

GOOGLE survived with a Zero Debt Book, due to its excellent management of Cash Flows.

Hey Friend,This was just a summary on Zero Debt. For more detailed information on this topic, please type the link given below or copy it from the description of this PPT and open it in a new browser window.

www.transtutors.com/homework-help/finance/zero-debt.aspx