Bankruptcy is the last thing that anybody wants to go through. It tears your credit apart, cause's public humiliation, and it generally means you have to start over financially. If there was any possible way of avoiding bankruptcy many people would take it in a heartbeat. The good news is that there are many ways of avoiding bankruptcy it just depends on what stage of financial ruin you are in.
The most important thing you can do if you are facing any type of financial crisis is to start a budget. A budget is an organized process of determining where your money is going. To start this budget, list your financial spending patterns and obligations. You begin to track exactly where your money is going in an organized way so that you can see the consistency in your spending habits. Once you have control over your financial spending habits you can than begin to save or pay off your debt. If you are in an extremely dire financial situation begin to use that extra discretionary income for paying off debts.
The second tip is you paying down your debts. Start a budget and begin to pay your debts down starting with the smallest debt first. If you have two debts that you owe the same amount of money, than go off of which one has the highest interest rate. It does not matter what the interest rates are on your different debts, the smallest must be your first priority in terms of paying it off.
Conventional wisdom might at first glance be, that you should pay down the debt with the highest interest rate first, but if you pay down the smallest debt first you can then use that old minimum payment and apply it to your next debt, this is what Dave Ramsey calls the "Debt Snowball." You get compounding payments which helps you build momentum and pay off the rest of your debts. This strategy gives you the confidence that you need to be successful against such a daunting task.
Einstein said "The definition of insanity is doing the same thing over and over again expecting a different result." If you go back to the old patterns of spending and managing your money you will end up right back where you started. Getting out of a financial coma takes a long time but if you set goals and establish good habits you too can become debt free.
Thursday, September 2, 2010
Bankruptcy - 15 Facts You May Not Know!
15 Facts About Bankruptcy
1. Stops a foreclosure of your home.
2. Stops repossession. For instance, if your car is being repossessed, Bankruptcy can stop your creditor from repossessing your car and possibly lower your payment.
3. Stops bill collectors. If you happen to be behind in your bills and your creditors are constantly calling you, that will definitely stop once you declare bankruptcy.
4. Enables you to keep your car as well as your home. Most people who declare bankruptcy do keep their home and their car while they are paying down their debt.
5. The new bankruptcy laws actually help people more than the old laws.
6. When you are married, you can file individually if the debts are mostly in one of the names.
7. Bankruptcy is not published in the newspaper.
8. Fast filing is normal. Some worry it will take forever to file, but that isn't the case. Usually it can be within 1-2 days, as long as you provide the necessary documentation.
9. Bankruptcy laws are federal laws and the cases are brought into federal court.
10. You have to petition for bankruptcy with a judge.
11. Not all debts are forgiven when you file
12. Student loans and tax debt usually can't be eliminated in any bankruptcy.
13. Your credit report will show Bankruptcy for 10 years after you file.
14. Filing Bankruptcy can Lower Payments...
15. Debtors must meet with a credit counselor six months prior to applying for bankruptcy and must attend money management class.
1. Stops a foreclosure of your home.
2. Stops repossession. For instance, if your car is being repossessed, Bankruptcy can stop your creditor from repossessing your car and possibly lower your payment.
3. Stops bill collectors. If you happen to be behind in your bills and your creditors are constantly calling you, that will definitely stop once you declare bankruptcy.
4. Enables you to keep your car as well as your home. Most people who declare bankruptcy do keep their home and their car while they are paying down their debt.
5. The new bankruptcy laws actually help people more than the old laws.
6. When you are married, you can file individually if the debts are mostly in one of the names.
7. Bankruptcy is not published in the newspaper.
8. Fast filing is normal. Some worry it will take forever to file, but that isn't the case. Usually it can be within 1-2 days, as long as you provide the necessary documentation.
9. Bankruptcy laws are federal laws and the cases are brought into federal court.
10. You have to petition for bankruptcy with a judge.
11. Not all debts are forgiven when you file
12. Student loans and tax debt usually can't be eliminated in any bankruptcy.
13. Your credit report will show Bankruptcy for 10 years after you file.
14. Filing Bankruptcy can Lower Payments...
15. Debtors must meet with a credit counselor six months prior to applying for bankruptcy and must attend money management class.
Saturday, July 24, 2010
Corporate Finance - Some Key Terms
Corporate finance in business is a general term used to describe anything in a monetary field to do with businesses. It is used to describe not just terms which involve the flow of money throughout a business e.g. revenue and costs, but also describes the tools which are used in order to calculate said figures, in order for data that has been collected to be analysed. This gives the numbers meaning, or better, an actual context which could be used in order to help a business keep on top of its cash flow and run more efficiently.
There are hundreds of different terms used in businesses to talk about money and each of them have different meanings, or just something minor which is different from the one before, in order to produce a totally different number all together.
The following are a few terms used within business to describe certain aspects of the business on a monetary basis: Assets (Current & Net), Stock, Shares, Costs (Total, Fixed, Variable), Profit (Gross & Net) and Price Elasticity. Price Elasticity is more to do with the running of a business, not as a whole, it is more aimed towards certain products themselves instead of the whole product portfolio. All of the other terms look at the business as a whole, or can be used to take a step back and look at it as a whole instead of smaller departments.
What is the point in knowing these numbers if you are not going to do anything with them? Well the answer is there isn't really that much of a point. As the previous titles stand, they are pretty much meaningless, not giving a user any indication of what is what it is just there. Hence, why the handy tools known as formulas were invented, in order to turn that data which is gathered into some much needed knowledge and understanding.
Some of the following formulas are used within the business world: Profit, Contribution, Break Even, Investment Decisions, Company Accounts and many more. Each have their own contribution in telling a user how the company is doing and some are used to predict trends to give a possible snapshot of the future e.g. Profit and Loss accounts & Time Series Analysis. These simple predictions take into account the trends that have been developing, then keeps the trend going to give a brief outlook on what would happen if everything continued at the same pace. This can help give an excellent outlook into the future of your business and finances.
There are hundreds of different terms used in businesses to talk about money and each of them have different meanings, or just something minor which is different from the one before, in order to produce a totally different number all together.
The following are a few terms used within business to describe certain aspects of the business on a monetary basis: Assets (Current & Net), Stock, Shares, Costs (Total, Fixed, Variable), Profit (Gross & Net) and Price Elasticity. Price Elasticity is more to do with the running of a business, not as a whole, it is more aimed towards certain products themselves instead of the whole product portfolio. All of the other terms look at the business as a whole, or can be used to take a step back and look at it as a whole instead of smaller departments.
What is the point in knowing these numbers if you are not going to do anything with them? Well the answer is there isn't really that much of a point. As the previous titles stand, they are pretty much meaningless, not giving a user any indication of what is what it is just there. Hence, why the handy tools known as formulas were invented, in order to turn that data which is gathered into some much needed knowledge and understanding.
Some of the following formulas are used within the business world: Profit, Contribution, Break Even, Investment Decisions, Company Accounts and many more. Each have their own contribution in telling a user how the company is doing and some are used to predict trends to give a possible snapshot of the future e.g. Profit and Loss accounts & Time Series Analysis. These simple predictions take into account the trends that have been developing, then keeps the trend going to give a brief outlook on what would happen if everything continued at the same pace. This can help give an excellent outlook into the future of your business and finances.
Saturday, January 23, 2010
Wednesday, November 4, 2009
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