This project aims to examine how individuals manage personal debt and how their financial behavior influences credit risk. It focuses on identifying key factors such as income stability, spending habits, and repayment patterns that determine an individual’s creditworthiness in the Indian financial ecosystem.
Conduct a literature review on personal debt management and credit risk concepts.
Identify different types of personal debts such as credit cards, personal loans, and EMIs.
Design and distribute a survey to collect data on individual borrowing behavior and repayment habits.
Analyze the relationship between income levels, expenses, and debt repayment capacity.
Evaluate how missed payments or defaults affect credit scores.
Study the role of financial institutions in assessing credit risk of individuals.
Use Excel or statistical tools to interpret collected data and identify trends.
Compare findings across different demographic groups such as age, occupation, and income levels.
Identify common financial mistakes leading to poor debt management.
Suggest strategies to improve personal debt management and reduce credit risk.
Prepare a case study of individuals with good and poor credit profiles.
Conclude with recommendations for both borrowers and lenders to maintain financial stability.
