Neck Deep in Debt?

With the opening of the Indian economy there has been a tremendous increase in consumer spending, and most of it is on credit. It is no secret that most people have too much debt. It is all very easy to sign up for a credit card and then start spending as if there is no tomorrow and land yourself with a maxed up card. All the big discount offers at all the malls and big shopping chains like Big Bazaar, Star Bazaar, Lifestle and others will be very difficult for you to resist. But it is rather unfortunate that many users of credit cards seem to forget that eventually the bill comes in once the 30-60 days period is over and then they may be in for a rude surprise. Credit card interest rates are notoriously high, and could be in the range of 36-50%. This when a Personal Loan secured from your bank is in the range of 12-18%. If you take a personal loan on your salary account it is even lesser with 9-14% interest rate. Your employer will also give you loan at no or very low interest rates.

With the current rates of interest on credit cards, it could take you years to pay off even a small balance of your debt if you only pay the minimum balance due each month. If you add to that the extremely high rates for late fees and over limit charges and you can see how easy it is for many people to run huge credit card debts.

It is very easy to avoid running huge debts on your card, provided you stick to the most essential basic tool of creating a monthly budget and sticking to it. Although, the personal budget is the most basic form of financial planning, you will be surprised how only a small fraction of people invest their time and effort to create this rather basic financial tool.

Armed with a personal budget you can have a clear understanding of your debt, and how you are going to pay it back. You should jot down on a notepad every single paise that you spend, from the bus or local train pass to the hefty party you threw at work. And believe me when see the amount of money that you spend each single day, in black and white, it really comes as an eye opener and you instantly realize where you need to put a stop. You will be surprised how each paise is being spent, and how much you can really save by keeping track of each and every paise that comes out of your pocket. Believe me you can save yourself lots of money, just by keeping track of the way you spend each and every paise.

Keeping track of your budget a little bit can provide you with the extra money that you need to pay a part of your debt. Paying a little extra every month on your credit card bills can go a long way in paying it off entirely. But the hard part is to stay the course and not stray back into the habit of whipping out your card every time you go shopping. Ideally, you should cut up those credit cards and keep only one or two with a low credit limit for emergencies only. Use it only when absolutely necessary and always pay it off every month.

Remember, it is always difficult to save money, and getting yourself out of debt can be even more difficult. However, it is not beyond your ability. You can get out of your debt troubles by getting a handle on your debt with a little bit of planning and financial knowledge.

Access your Credit Report

The Credit Information Report (CIR) that banks base their decision while sanctioning a loan, can now be accessed by retail customers. This was previously only available to banks and other financial institutions. This is a very important piece of document and should be reviewed periodically to ascertain your credit worthiness. However, this information is only available to an individual after paying due fees and submitting self attested copy of valid identity and address proof. For these purposes, you can use your PAN Card, Passport or Voters ID as identity proof and Bank Account Statement, Telephone Bill or Electricity Bill as address proof. There is a fee of Rs. 142 which is payable in the form of Demand Draft in favor of Credit Information Bureau (India) Limited payable at Mumbai.

You can download CIR request form at http://www.cibil.com/pdf/Consumer_Disclosure_Form.pdf

Once downloaded and filled in you can request for a copy of your CIBIL Credit Information Report by the following methods:
Email: Email the duly filled CIR request form to myreport@cibil.com
However, you will need to send seft attested hard copies of your identitiy proof and address proof alongwith the DD of Rs. 142 to PO Box 17, Millennium Business Park, Navi Mumbai - 400710

Snail Mail: Mail the duly filled CIR  request form alongwith seft attested copies of your identitiy proof and  address proof alongwith the DD of Rs. 142 to PO Box 17, Millennium Business Park, Navi Mumbai - 400710

Fax: Fax duly filled CIR request form to 022-61404300
You will have to  send seft attested hard copies of your identitiy proof and address proof alongwith the DD of Rs. 142 to PO Box 17, Millennium Business Park, Navi Mumbai - 400710

If you have any queries you can get in touch with CIBIL at 022-61404300 or email consumerqueries@cibil.com

Hope the above information helps you guys and you are able to access this vital document for review.