LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Mohammad Atabul, Dr. R N Thakur

Abstract:This research explores the role of financial literacy in reducing personal debt levels, focusing on key factors such as spending habits, access to financial education, financial planning practices, and credit usage. With rising debt issues affecting individuals globally, understanding how informed financial behaviors can mitigate debt is critical. A quantitative method using a structured online questionnaire was applied to examine these relationships. The study found that financial literacy significantly influences personal debt management. Specifically, individuals with strong financial planning practices and responsible credit usage exhibited better control over their debts. Access to financial education and informed spending habits were also found to positively contribute to lower debt levels. These findings emphasize the importance of equipping individuals with the knowledge and tools to make sound financial decisions. The research underscores the need for financial education initiatives and practical literacy programs to improve individual financial well-being and support broader economic stability.

Keywords:Financial Literacy, Personal Debt, Spending Habits, Financial Education, Financial Planning, Credit Usage