A Study on the Influence of Financial Debt on Individuals in the region of UT of DNH & DD

Invention of credit that gives birth to a debt has played the salient role in modern economics. Debt is used by the units in economics to fund their economic activity, that might not be possible only relying on cash. Thus, debt has become an important aspect in present day economics. However, the use of debt should be judicious. Debt is a financial arrangement for a specific period of time with an add-on payback, and if the same isn’t paid back in time it’s no good to the economy as well as the one taking debt. Such a situation called as debt trap may influence debt holder adversely. This paper attempts to study such influence on the individuals that hold or might have hold the debt. Empirical data was collected through as structured questionnaire and analysed to gather the insights on said subject. The data analysed for various constructs such as; Stress Level, Mental Health, Physical Health, Relation with Family & Friends, Job Performance, and Overall Quality of Life, it was found that majority of the respondents were neutral on all the examined constructs except for ‘Mental Health’. It was found that majority of the respondents were moderately affected on their ‘Mental Health’ due to financial debt taken by them. This paper contributes to the existing knowledge of individual behavioural finance with fresh evidence from the region of Union Territory of Dadra and Nagar Haveli & Daman and Diu, India.