In A debt Trap? Know Your Rights As A Borrower
June 22, 2024
India, like many societies, has historically had a patriarchal structure where financial decision-making and planning often rested with male family members. This dynamic has often left women, especially older women, in a dependent position, relying on their spouses or sons for financial planning and support.
In traditional Indian families, it’s not uncommon for women to have limited involvement in financial matters, with their husbands or male relatives taking on the responsibility of managing finances. This can lead to a lack of financial literacy and independence among older women, as they may not have been actively involved in financial planning throughout their lives.
Furthermore, cultural norms and societal expectations often dictate that women prioritize family responsibilities over their own financial independence. As a result, many older women may find themselves financially reliant on their spouses or sons, particularly in cases where they have not been able to accumulate personal savings or assets.
This dependency can become particularly pronounced in cases of widowhood or when women outlive their spouses, as they may suddenly find themselves responsible for managing finances without the necessary knowledge or experience. The men in the family may have also accumulated different types of loans, the responsibility for which falls on the heir, in this case, the woman of the family.
There is a tremendous need for the women of India to become financially literate and adept at financial planning. They also have to put in debt management plans using the services of a financial advisory and debt management solutions company like SingleDebt which provides financial, legal and anti-harassment guidance.
The fact that there are over Rs 42,270 crores in unclaimed deposits and Rs 1 lakh crore in inoperative accounts in public sector and private banks in India highlights the magnitude of this problem. This is your money, not government or public funds and you must seize the initiative to take charge of this. This Mother’s Day, instead of traditional gifts like chocolates or flowers, give your mother a gift that she will truly value. Enable her to gain access to the financial assets to which she is heir and introduce her to a financial planning agency like SingleDebt in case she has inherited debts. A true gift would be helping shape her as a strong, independent woman who can take charge of her financial destiny.
Source:- Moneylife News Bites
If the balance in your spouse or son’s savings account with a bank lies unclaimed for two years, it becomes an unclaimed deposit. You can still claim this money by re-activating your account between two years and ten years and claim the funds at any time. After 10 years, it gets transferred to the RBI. RBI has provided a special portal called UDGAM (Unclaimed Deposits Gateway to Access Information. udgam. You can register your mom on this website to gain information about her unclaimed deposits if any. If the 10-year interval is getting over, act speedily to register and recover your mother’s funds. Rbi, after an interval of 3 months, transfers the unclaimed deposit amount to the Investor Awareness and Protection Fund.
Savings or Fixed Deposit Account: A retirement plan, a savings account, or a fixed deposit account in your mother’s name will work wonders to make her financially independent. This can provide her with financial security and earn her interest income over time. A Public Provident Fund or National Pension Scheme also have tax benefits along with long-term growth opportunities can also make a valuable gift.
Mutual Fund Investment Invest in mutual funds on her behalf. You can choose funds that align with her risk appetite and financial goals.
Stocks or Bonds: Gift her stocks or bonds of companies she admires or that have growth potential. Plan carefully for a conservative risk profile and take her investment preferences into account. These provide regular income plus, have the scope for appreciation, gaining her some profit.
Insurance Policies: Purchase life insurance or medical insurance policies for her. This can provide her with protection and a stress-free life without having to battle with huge medical bills in case of illness. It could either be a Senior Citizen’s health insurance plan or a family floater medical plan along with the rest of your family. This will take care of hospitalization and cover the expenses during critical illnesses.
Financial Planning Session: Instead of assets, your father may have left large amounts of debt. In such a case, managing the debt payments and struggling with the recovery agents increases the difficulties in your mother’s life. You can arrange a meeting with a financial advisor like SingleDebt who can help create a debt management plan or work on her debt consolidation. This will enable your mother to meet her liabilities with equanimity.
Online Courses or Workshops: Invest in her financial education by gifting her online courses or workshops on personal finance, investing, or wealth management.
Remember to consider her financial goals, preferences, and current financial situation before making any investment decisions. Additionally, ensure that she understands and is comfortable with your chosen gift.
On Mother’s Day, the greatest gift we can offer our mothers is often not something material but rather the opportunity to achieve financial independence.
For too long, many mothers have sacrificed their own ambitions and dreams to provide for their families, often at the cost of their own financial stability. This Mother’s Day, let us pledge to support and empower our mothers to take control of their financial futures. Whether it’s through education, career advancement, or entrepreneurial endeavours, investing in our mothers’ financial independence is a powerful way to honour their sacrifices and celebrate their strength and resilience.
By equipping our mothers with the tools and resources they need to become financially independent, we not only enhance their quality of life but also pave the way for future generations. When mothers are financially empowered, they serve as role models for their children, teaching them the value of independence, hard work, and resilience. Moreover, financially independent mothers contribute to stronger and more stable families and communities, as they are better equipped to weather life’s challenges and support those around them.
Use SingleDebt assistance in making debt management plans for your mother’s inherited debt. This Mother’s Day, let us commit to empowering our mothers to thrive financially, ensuring that they have the freedom and opportunity to pursue their passions and dreams while securing a brighter future for themselves and their loved ones.
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