Aug
02
2019

Personal Finance Series: No 23 – Sick to the Stomach With Statutory Demands?

The sizeable debt problems in the UK and USA are well documented and are growing so quickly that quoted statistics become quickly obsolete. In Ireland, the issue is a growing problem too, and in all 3 countries, charities and government sponsored bodies set up to handle debt problems are over run with enquiries.

The credit industry and their relentless lending, collection and recovery methods created a debt management solutions industry where companies represent their clients to creditors in return for a professional fee. These debt management companies can provide debt consolidation counseling, and if chosen carefully, can be very helpful and professional.

Our lifestyles are dominated by borrowing and servicing debt, finance charges and fees.

The Dangers Of The Debt Spiral

The Debt Spiral starts off when a new credit card arrives in the post. Most people believe that because their credit rating ‘passed’ the lender believes that they can afford to have it, why else would it have been issued? So false authority is given immediately to a piece of plastic and the belief “It’s all right” is seeded.

Constant usage seeds a habit, then a behaviour until clearing the monthly balance becomes difficult. The next downward stage is to make part payments, and finally only the minimum payment each month. Interest on Interest quickly compounds and the minimum payment does not make any significant impact on the balance. This gets repeated on average over 3 of 4 different cards, until the average debt payments become a burden.

Then in that situation, a life event happens and the money funding the repayments stops. Yet the interest, demands and bills are relentless – building and growing. Matters at this stage become desperate.

How To Get Out Of A Desperate Situation

There are a number of options, which largely depend on the personal finance statement. The first thing to do is grab a clear hold on the money in and the money out. Consult the personal finance budget software online and make lifestyle adjustments.

As things deteriorate, renegotiate with each creditor for breathing space, or seek professional help from a debt consolidation counseling centre who can walk you through all sorts of tools. Tools like a debt snowball calculator, an affordability calculator, financial goal setting and a range of insolvency options to suit the circumstances.

How To Become Debt Free Forever

Common sense dictates that living within the money available each month is the way to do this, yet so many do not. The first task is to create some ‘wriggle’ room. Pay off the most expensive debts with as much as is available to do so, then transfer to the next and the next until it is done.

Next, turn all these repayments to the capital on the mortgage and it is entirely possible to become debt free in less than 10 years, and owe nothing.

Why Your Parents Were Wrong About Debt

Previous generations didn’t encounter the credit culture we all live in today. Their values are still worth following in that if you couldn’t afford it, you didn’t get it. However, debt can be harnessed and managed if understood properly. This issue isn’t debt, it’s unmanagable debt.

Subscribing to a money management system, like the kind provided by personal finance budget software online is an easy way to keep track on money. With the right tools, debt, charges, and fees do not need to be things we fear

Comments Off
Jul
26
2019

Three Reasons Every Woman Needs a Personal Financial Statement

If you’re a goal-oriented woman, you understand the importance of setting a goal and creating a strategy to achieve it. But did you know that there is a method to the madness of planning for your financial future? Creating a personal financial statement is the starting line in your race to financial security. If you don’t know what a personal financial statement is or are unsure about whether you need one, these three reasons will help you see the light.

1. To Track Your Progress, You Need a Point of Reference

When embarking on a new venture, in order to keep you on track as well as track your progress, you must have a point of reference. Whether you’re training for a marathon or saving for that big trip, you need to know where you’ve been to see how far you’ve come.

Think of your personal financial statement as this point of reference: it will let you know where you are now, keep you pointed in the right direction and, as time passes, show you how far you’ve traveled. When done correctly, it is a wonderful tool to help you track your family’s finances, plan for future purchases, trips, investments and even retirement.

Plus, the further you go financially, the more important it is to have current financial statements and a bona fide tracking system. Think of it this way: you wouldn’t purchase a car without calculating whether you could make the monthly payments, right? A personal financial statement will help you make decisions just like this, but in all aspects of your financial life! When it comes to the big bucks, without tracking your personal finances things could quickly spin out of control — or worse, you could be making financial decisions that will negatively impact you in a future you have not even yet imagined.

2. Personal Financial Statements Help Answer Important Questions

Personal financial statements are used to answer questions such as:

* Did I make enough income last month to cover my expenses this month?

* Where is my money going?

* What is my biggest expense?

* Where can I reduce personal expenses?

* Where can I increase personal revenue?

* Is my net worth increasing or decreasing?

* Is the debt I’m taking on “good” or “bad”?

Once a personal financial statement is compiled for you, it can be used to plan for your future. Retirement, investments, loans and other financial planning/decisions can be planned for and justified using an accurate financial statement.

3. Building Wealth Takes Planning

It’s a different mindset that people must have, if they want to build wealth. Unlike what many people would like to believe, the wealthy do not simply “stumble” upon financial stability. They keep close and accurate record of their finances and make financial decisions that are based on sound judgment and facts.

Becoming wealthy is achievable — and with the help of a financial professional, you can in many instances even forecast a date when you could achieve financial stability! It is worth the investment; no amount of money you save by doing your taxes yourself will make up for the assets you could build with the help of a true financial specialist.

Understanding that YOU and YOUR personal finances are in essence a business will help you to make decisions that will positively impact your financial future. Just like with a business, your personal finances are trackable. A personal financial statement will help measure your progress and turn your dollars into assets that will keep you making money long into the future.

Comments Off
health insurance> healthy snacks> healthy recipes> healthy breakfast> dalfanatiker.gq> health equity> health and fitness> health and wellness> health alliance> health benefit> dalfanatiker.gq> Health Diagnostics> Health Insurance companies> Healthcare Systems> Health Insurance> Mind Body Spirit> Drug Abuse> Anti Aging> Critical Care> Medicine and Surgery> Drug Abuse Prevention> Healt Blog> Healthcare Alliance> Healthy Food> Healthcare Analyst>