Rank loans, save money, seek advice: Strategies to get out of debt

Recovery agents cannot harass debtors and have to take consent before visiting them

State-run banks' credit card bad loans doubled to 18 per cent, says the central bank’s Financial Stability Report (FSR) released on June 29. Data from the FSR showed that the non-performing assets (NPA), or bad loans, for credit cards increased from 9 per cent in March 2022 to 18 percent in March 2023.

Art director Nitin Desai, who died of suicide this week, had a loan of Rs 252 crore. Here are a few strategies to get out of debt.

Debt avalanche

This is the strategy most financial planners recommend. Rank all your loans by interest rate: from the highest