Conventionally, we would come across Savings, Investing, Compounding, Building Corpus, Retiring early, and so on, which allows one to breathe the air of financial freedom.While the conventional wisdom is lucrative, there is no definite path to it. The author expresses that, “Clearing your debts and abstaining from them” is the first and foremost towards the financial freedom.

What Is Financial Freedom?

Better go to bed hungry than wake up in debt

A debt trap is a situation one gets in if they don’t handle the money well. It favours the lender more than the consumer.The lenders, including the banks, is in the business of making money. They do so by giving money with more interest rates, penalities, defaulting, etc.,In my view, the lenders if not from an institution, is even more dangerous, as their means of getting back the money in case of bankruptcy is unimaginable.

Debt Trap

<ol><li>Housing loan</li><li>Credit card</li><li>Automobile loan</li><li>Personal loan</li><li>Education loan</li></ol>of these loans, credit card and automobile loans of found home with many people.Even worse is the face that there is more than one credit card with individuals.

Most Popular Loans

If we avoid taking loan, then we can be out of debt trap and lead a peaceful life.Here are ways to avoid them<ol><li>Create a budget - Most conventional old school style- Take a stock of your incomes and expenses including miscellaneous expenses.</li><li>Cut down your expenses - Be frugal.</li><li>Build an emergency fund - at least 6 times of your monthly expenses as emergency fund.</li><li>Do not take loan - Delay the gratification by saving the money needed to get the product that you want.</li></ol>

How To Avoid Loans

You don’t need to be great to start, but, you need to start to be great

Managing money is the most important part than earning. Failing which it will bring bankruptcy in no time.<ol><li>Be diligent with your budget</li><li>Invest wisely, and not be greedy</li><li>Take help of a credible financial consultant</li><li>Have a financial goals and invest for each of them based on priority and urgency</li><li>Don’t ignore inflation</li><li>Don’t oversee health insurance even if you are employed and covered by your employment</li></ol>

Financial Planning

If you spend money that is not yet earned then we may end up in debt.But if we become impulsive that’s when the danger creeps in.Loans is the path to debt!

How Can One End up In Debt?

No.If you take debt, for an item that grows in value, then it is a good debt. For example, education loan, business loan, and to an extent housing loan.If you take debt, for an item that diminishes in value, then it is a bad debt. For example, automobile loan, loan on mobile phones, home appliances, etc.,if you have leveraged, “No cost EMI” or “Zero percent EMI”, then the good and bad will be much more relatable.

Is Debt All Bad?

Is a financing option that allows the buyer to pay the agreed price over equal monthly instalments over an agreed time, without any additional interest charges.Reserve Bank of India (RBI) has banned Zero percent EMI, in 2013.Then, what is No cost EMI? Is it not Zero Percent EMI? No, the present day No Cost EMI, builds on the same concept but has additional interest passed on to the customers/consumers, increasing the price, and offering them as discounts.A nice illustration <a href="https://www.youtube.com/watch?v=ciMhEsmWQi8">video on No Cost EMI</a>.

Zero Percent EMI

<ol><li>Always pay the dues in full, not just minimum due.</li><li>Keep track of your credit card expenses.</li><li>Read credit card statement carefully - it is possible to have erroneous bills though it is generated by system.</li><li>Do not withdraw cash from credit card.</li><li>Do not do balance transfer between cards to manage the show.</li><li>Do not pay another loan to repay your credit card debt.</li></ol>

Golden Rules For Credit Card Users

<ol><li>Repay - Simple and Straightforward - Pay the dues on time.</li><li>Prepay - Simple yet profound - Pay the dues and any surplus that’s left. Paying 1 extra EMI a year can reduce your loan term significantly.</li><li>Restructure - Difficult but possible - Working with banks to restructure the loan if you are bankrupt. This option gives some breathing room for repayment by amicably working out on a repayment schedule.</li></ol>

How To Reduce Loans

This book is completely centered around debts and its kind, talks how one can achieve the path of No Debt, and how the No Cost EMI schemes are deceiving people in to bad financial habits. It is not for those who seems to manage their finances well, but beware of debt! It will soon catch!

Are you happy with the way you are handling your finances? Research says that 90% of the people work for EMI and not for anything else. People stick to their job because of the EMIs they must pay. Are you one among them and want to get rid of your EMIs? Are you looking for ways to achieve Financial Freedom? Do you want to be organized and manage your finances better? Zero EMI has the answers to all your questions and will help you control your finances, instead of being controlled by them. The author explains the concepts in simple English with the use of his personal stories and the stories of his friends. The book offers practical personal finance tips for salaried people in the age group of 22 to 50 years. Grab a copy if you want to learn how to reduce your loans, avoid taking loans and lead a stress-free life financially.