Debt is a fact of life for most people in today’s society. Whether it is monthly mortgage payments, the balance owed on credit cards or loan repayments, most of us accept a level of debt in our everyday lives without really thinking about it.
The uncertain times that we live in, however, can often mean that a change in personal circumstances, for example, being made redundant or having to fund a major purchase such as a new washing machine unexpectedly, can have a significant impact on your ability to repay your personal debts.
If you have concerns about the level of debt that you have and your ability to meet your monthly repayments, then it is important to seek advice sooner rather than later. Even if you have reached the point where bankruptcy seems like a real possibility, it is worth exploring possible alternatives.
Where to go for advice
There are a number of organizations that can provide advice and support on debt-related matters.
The Government provides information on a wide range of issues on its Directgov internet site. This includes a Money, Tax and Benefits section, which can be found here; http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/index.htm. There is a lot of clear and practical information here on a variety of subjects, from general advice on how to deal with debt, to specific sections about mortgage arrears and bankruptcy.
The National Debtline, which is part of an organization funded by a number of banks, building societies and retailers, provides a confidential helpline that can help with providing information on ways of dealing with your debts. It is an independent service and, if you wish, you can speak with their advisers anonymously. Details can be found at http://www.nationaldebtline.co.uk.
The Consumer Credit Counseling Service, a national charity, offers a free debt counseling service which can be accessed either by using an online tool or speaking to one of their customer advisers. Details of this service can be found at http://www.cccs.co.uk/Services/Debtadvice.aspx
A specialist debt charity, the Debt Advice Foundation, also provides help and support with managing debt. There is plenty of information on their website, http://www.debtadvicefoundation.org and, as well as having a telephone helpline, they also provide a number of tools such as budget planners that can help with organizing your finances.
Ways of managing debt
There are a number of different ways of managing your debts. The most appropriate for you will depend on your individual circumstances. For some people, consolidating their debts works well as it makes them more manageable. For others, looking into debt help advice, or Individual Voluntary Arrangements provide the solution. These need to be set up by independent specialists such as those found at www.iva-expert.co.uk. For some, bankruptcy, administration orders or debt relief orders are the most appropriate way forward.
Different options can have an impact on your life in a number of areas. For example, they can affect your credit rating. Any assets that you own can also be affected and there could be future restrictions on the type of office that you can hold. It is, therefore, important to take advice if you are struggling with debt issues. This will ensure that you find the best way, for you, of getting back in control of your finances.
April 6
Anything SIPPSPlanning about one’s future and investing in a reliable future plan is perhaps the pronominal discussed topics of the era. Gone are the days of those typical savings schemes when people used to keep their hard-earned cash into their safety bank account for a petty interest return after a certain period of times. Today, there are several new and attractive savings schemes, which not only gives one a much higher return rate but even allows a bonus addition of tax relief too. One such attractive offers that has boomed the market in the recent times is the introduction of the SIPP Pension scheme.
When taken into account, advantages of this latest future plan are many and can be counted as has been done underneath in the bulleted points.
- A detailed study of the matter suggests that a SIPP pension scheme is nothing but a self-funded pension program that has been designed to help one get a secured inflow of money even after retirement.
- Being an investment policy, these plans can even give one the flexibility of saving a huge portion of tax that might be levied upon one’s income structure.
- Third and most importantly, these SIPP pension programs are so designed that they can allow one the pliability of investing in the existing stock market of the decade which can in fact help one get a far better return amount than any other nominal savings schemes.
- Last but not the least is the unique facility offered perhaps by SIPP pension plan alone in the market today, the insurance guarantee. According to this facility, the plan solely is responsible for carrying out any expenditure that might occur during a medical treatment of the user. It even guarantees a secure life for one’s loved ones in case one meets with a dreadful future much before the maturity of his scheme.
Taking into account all the above details, it can be pretty obviously said that investment in a SIPP pension programme is perhaps one of the best choices that a person can have in today’s age. It can help one get an added source of income, secured life as well as suitable relief from tax amounts all under one roof.
December 7
Conservatories Increase Your Homes ValueMost of us are proud of our properties and want to make sure that they look as good as possible and are as highly valued as they could be. One relatively simple way of doing this is by adding a conservatory to it.
By doing this the value of the property goes up to include the extra space you have added to it, and the extra light you get into the property can also show the rest of it off to the best possible effect. However, we don’t have to be cold hearted and think of this added value purely in terms of numbers. Below are some of the ways in which getting conservatories fitted can add to the value of properties in other ways.
Somewhere to Relax
These days there seem to be fewer opportunities than ever to sit down and just let the world pass us by. Between work pressures and family commitments most of us could really do with somewhere calm to just chill out now and then. This is where a conservatory is absolutely ideal, as the warmth and the light make it a room which it is a delight to pass time in. You don’t even need to do a lot to it. Just add some plants and a comfy chair and go there with a good book when you want some peace and quiet.
Stay Warm
When the cold starts to bite in winter sometimes the central heating just doesn’t do it for us. If you like the idea of getting warmed up by some real, natural heat then head to your conservatory and enjoy the light and sun there. Even if it is a bit chilly outside the sunlight slanting in to your new room will heat it up nicely.
Enjoy a Hobby
Anyone who has ever fancied the idea of taking up a new hobby will find that a conservatory is the ideal place to do so. Whether you want to try your hand at knitting, painting some pictures or writing a novel you will find the light and warmth in here make it an ideal place to try a few different ideas and get creative.
Enjoy the Garden More
So far all of this has been staying indoors. However, you can also spend more time in the garden if your get a conservatory added to your house. This is because it gives you an ideal link between the different areas. Try filling it with some easy to care for plants and you might notice your fingers turning noticeably greener over time. Even if you don’t get bitten by the gardening bug you can still use it as a stepping stone to going outside and doing whatever you plan to do out there. Don’t forget that if there is a chance of the rain or wind ruining a barbeque or picnic in the garden then it is easy to just step indoors and enjoy the same view but without the hassles of the weather.
I have always been quite careful with my money, probably something I inherited from my parents. Take care of the pennies and the pounds will take care of themselves used to be my fathers mantra when I was growing up. I do try to watch my outgoings, but have never thought about insuring myself against hardship until a friend of mine was made redundant recently after a long illness. I decided to look into an income protection policy to ensure my essential outgoings would be covered every month if something happened to me. After visiting the Permanent Health Insurance website I was able to get myself very generous cover for a much lower premium than I was expecting. I have also got myself some life cover, so I can now sleep soundly at night, safe in the knowledge that me and my loved ones won’t lose the roof over our heads no matter what happens to me. Saving money is all well and good but if you were off long term sick how long would that last? Not as long as my income protection policy would continue to pay me out for. I am trying to spread the word, so that no other members of my friends or family are left at risk.
We recently had a presentation at work about managing personal finances and it was suggested that we try to look for the cheapest way of insuring everything and search for the cheapest utilities provider at that moment for gas and electricity. Furthermore the speaker went on to say that it was possible to make savings on virtually all household expenditure and illustrated this by doing a life insurance comparison right there in front of us. Armed with this information I have decided that hence forth I will make time to save money wherever it can be done. Unless I have compared prices I will not commit to buying from anyone, until I have used every opportunity to find out if I could’ve bought the same thing elsewhere for less money. I have access to the internet at home and I intend to make it pay for itself so that I can enjoy the benefits.
The benefits of commercial real estate greatly outweigh the costs. In fact, I would say that commercial real estate is the best industry to be involved with because of the profits that can be made, as well as the fun nature of the work.
There are many who feel that commercial real estate is greatly out of their league, but this couldnt be the further from the truth! Commercial real estate is accessible to everyone who is willing to learn about a new industry and reap benefits no other industry can offer. Below you will find the best reasons why you should get involved with commercial real estate. It is truly the best kept secret of those already succeeding or just starting out.
Lets look at the many advantages of commercial real estate.
The first, and probably the most enticing benefit of commercial real estate, is profit. Huge profits, in fact, which can be made with a limited amount of effort. You can make the same amount of money quick turning or selling 100 single family residences as you would make with a single commercial real estate deal. The profits can be astonishing!
It takes the same amount of work for every commercial real estate deal, meaning you must go through the same processes each time. Why not maximize your results and go for the larger returning deals, rather than the smaller ones? Synergy is a key word in commercial real estate, as small changes can yield huge results.
Another great benefit of commercial real estate is you can work full or part-time, depending on your individual situation! Commercial real estate can easily be a part-time job that brings in incremental cash flow. You can even start out part-time, and hold a job until you have enough cash flow and money so that, eventually, all you do is commercial real estate.
Commercial real estate as a full-time job allows you to have many benefits such as being your own boss and having the ability to work from home. You can create your very own commercial real estate business and quickly build a strong net worth as well as positive cash flow.
In commercial real estate, your financial investment is very low, perhaps even non-existent. You can purchase property with 100% of other peoples money (OPM), and create large profits for yourself. This is the only industry where there are literally hundreds of millions of dollars just waiting to be borrowed! Find the money and get to investing!
Commercial real estate is an industry of abundance, not one of limits. In fact, there is very little competition because there is always commercial property becoming available. There is more than enough for everyone, which allows every person to have their opportunity to succeed in this business.
Another great benefit is that you can start right now, today! It does not take years of training or years of moving up the corporate ladder to be successful. You can begin your commercial real estate endeavors whenever you so desire because there are very few barriers of entry to this industry.
Finally, the greatest benefit I think commercial real estate has to offer is freedom. When you become involved with commercial real estate you have the freedom to do as you please. When you are not stressed about making rent, or finding your next job, life can be enjoyed to the fullest.
Commercial real estate can give you financial and personal freedom that, otherwise, would be wrapped up in a 9-5 job and someone else telling you where you have to be and at what time. For you already successful professionals and business owners, commercial real estate can be a great way to build wealth and equity quickly, without much time investment and headache! It is a great alternative to other types of investments that return 1/100th of what commercial real estate can return!
No matter what business, job, or current occupation in which you are involved, no other industry can supply you with the ability to be in charge of your very own life and create a lifestyle that best fits you and your personality.
It is truly amazing how peoples lives drastically change with only a few income producing properties in their portfolio. I urge you to delve further into this industry and get excited about it! Commercial real estate is a sound, extremely profitable, extremely doable, tried and true business that will always be available to those wanting the benefits commercial real estate has to offer.
Why You Should Care At All About Choosing A Bank And What To Watch Out For…
People quite often make decisions impulsively, without considering the consequences. This may work okay in some situations but it could come back to bite you when dealing with financial topics like investments, financing, refinancing, insurance and mortgages. To be a wise investor we should take some time to consider and know more about the place where we are going to deposit our money.
A very wide array of banks exist. Just to name a few that you’ll probably recognize; Citizen Bank, Well Fargo Bank, Region Bank and Scotia Banks.
Here are some guidelines to consider before choosing a bank:
1. Location: While choosing a bank, you must consider the location. If you wish to access your bank account regularly then you should choose a bank located near to your business place or home.
2. Availability of ATM Machines: Always choose a bank with a large number of ATM machines close by. Also, regarding the ATM’s you should ensure they can provide the following services: a) Do the ATM machines allow you to make deposits? b) Do they give printout statements of transaction made by you? Most do nowadays but some countries may not. c) Can you order more checques through the ATM?
3. Telephone Banking: If you are a very busy person and can not go to the bank during banking hours then you should choose a bank, which can provide you with telephone banking services. With telephone banking you can make transactions and check on your account anytime of the day. With the help of telephone banking you can do the following operations:
a) Transfer money from your account to pay utility bills.
b) Cancel recent transactions.
c) Order another cheque book.
d) Sign up for additional services like loans, credit cards or lines of credit. 5. Internet Banking: Internet banking allows you to perform the same services as telephone banking. But here inquiries and transactions can be done via any internet connection through the banks website. If they have one! So do ask as it’s a great convenience when traveling.
If you are searching a bank for small business, here are some guidelines to help you while choosing a bank. 1. Again, consider the location and make sure the bank understands the nature of your business to meet your requirements. For example, if your run a movie rental business that’s open till midnight you may want to do late night or very early morning deposits. So in this case ensure the bank has a night deposit box. 2. Find out the transaction fees and don’t assume the fees are similar to personal accounts. Banks generally charge businesses way more due to the increase in transactions. 3. Find out the rates for small business loans or lines of credit and the turn around time to secure funding. You may find youre self in a situation where you need an extra few thousand or more to secure better pricing on bulk orders of supplies or something else.
The above list is in now way exhaustive but a place to begin if youre just now looking or considering a switch.
Curious about how much money you’ll accumulate in your Roth retirement account?
If youve got Microsoft Excel (or just about any other popular spreadsheet program) running on your computer, you can use its FV function to forecast the future value of your Roth IRA or Roth 401(k).
The FV function calculates the future value of an investment given its interest rate, the number of payments, the payment, the present value of the investment, and, optionally, the type-of-annuity switch. (More about the type-of-annuity switch a little later.)
The function uses the following syntax:
=FV(rate,nper,pmt,pv,type)
This little pretty complicated, I grant you. But suppose you want to calculate the future value of an individual retirement account thats already got $20,000 in it and to which you are contributing $400-a-month. Further suppose that you want to know the account balanceits future valuein 25 years and that you expect to earn 10% annual interest.
To calculate the future value of the individual retirement account in this case using the FV function, you enter the following into a worksheet cell:
=FV(10%/12,25*12,-400,-20000,0)
The function returns the value 771872.26roughly $772,000 dollars.
A handful of things to note: To convert the 10% annual interest to a monthly interest rate, the formula divides the annual interest rate by 12. Similarly, to convert the 25-year term to a term in months, the formula multiplies 25 by 12.
Also, notice that the monthly payment and initial present values show as negative amounts because they represent cash outflows. And the function returns the future value amount as a positive value because it reflects a cash inflow you ultimately receive.
That 0 at the end of the function is the type-of-annuity switch. If you set the type-of-annuity switch to 1, Excel assumes payments occur at the beginning of the period (month in this case), following the annuity due convention. If you set the annuity switch to 0 or you omit the argument, Excel assumes payments occur at the end of the period following the ordinary annuity convention.
Wealth Secrets of Millionaires: Become Wealthy By Not Repaying Your Debt
Wealth. Does that sound like a foreign word to you? If youre saddled with loads of consumer debt the way so many Americans are, it is probably a very unfamiliar word. Commercial and consumer debts are the greatest barriers to wealth. And when youre suffocated by thousands of dollars of debt, it may seem impossible to get out.
Theres good news! Its not impossible to eliminate your debt and move toward wealth. Most people and small businesses simply dont have a system for paying off their debt, and as a result they perpetuate bad habits and remain stuck in it. By using the proper debt management system, you can get out of debt quicker than you probably imagined with minimal change to your existing lifestyle.
To top it off, there is a system you can use that will allow you to simultaneously create and feed the Wealth Cycle, a cycle of wealth millionaires use to consistently and exponentially build their wealth. In other words, you can simultaneously become wealthy and repay your debt.
Skeptical? I bet you are. But, youll be surprised at how easy this is.
So whats the best way to abolish consumer debt? Many financial advisors will tell you to scrimp, save and cut back on absolutely everything that makes life fun. Theyll tell you to create a very tight budget and then pay off your debt before you can even think about making investments of any type. Sounds a lot like a diet, one that will cause you to starve yourself and your children, depriving them of wealth.
So what does work?
To tackle consumer debt, Lorals five-step debt strategy includes the following steps (explained in considerable detail in her book, The Millionaire Maker):
- Create a debt elimination box
- Calculate a factoring number
- Make a priority payoff box
- Use a jump start allocation
- Make your debt payments
By using this system, your debt payments start to build as you pay of your creditors, all of whom have been listed in order of priority. Your capacity to pay off your debt accelerates quicker and it does require you to shave down unnecessary expenses, but not cut out everything you love. In short, its realistic – and mighty effective. You simply have to commit to it.
But wait, theres more to it!
Earlier I mentioned that you can pay off your debt and at the same time actively build your wealth. Remember that Wealth Cycle mentioned earlier? This is where it comes in.
The Wealth Cycle used by millionaires consists of 12 steps:
- Gap Analysis
- Financial Baseline
- Freedom Day
- Debt Management
- Entities
- Cash Machine
- Wealth Account
- Forecasting
- Assets
- Leadership
- Teamwork
- Conditioning
Its okay if you dont know what each step means right now. The main thing to understand is that the key to success in using the Wealth Cycle is knowing which steps to take, and in what order.
Everyones financial situation will require its own order of sequencing. A wealth mentor can help you determine whats right for you. For some people, the first step is to develop the proper legal entities for their business and investments so as to maximize tax strategies. For others it may mean first
reallocating assets so you can bring in increased monthly income that enables you to start investing. This will in turn bring in passive income which will allow you to pay off your debt quicker.
Heres an example of when entity structuring might be used first:
Lets say you have a graphic design business but its not incorporated. This means your debt includes a lot of expenses — cell phone, office supplies, postage, etc — that you paid for out of your personal account. If you make your design business an entity, lets say a Subchapter S Corporation, then the portion of your debt that includes those items can now be transferred over as business expenses. Now you can write off that portion of your debt against your income, giving you more money at the end of the year!
The interesting thing about the Wealth Cycle is, as stated above, that you only focus on debt management after you develop a Cash Machine, the proper Entities, and engage in forecasting. Building wealth from a position of great debt takes courage, discipline, and positive energy. I realize this may seem a difficult scenario from which to create wealth, but my hundreds of successful clients prove that getting out of debt and building wealth is very doable. What it takes is a commitment to gaining awareness of your psychology, your finances, and a willingness to let go of old habits that no longer serve you.
US Banks Are In Trouble! Don’t let their mistakes affect your financial situation!
Banks serve a tremendous purpose in this world.
They take in individuals deposits and pool them together to lend them to businesses or individuals who need the capital for a business opportunity they have. This business opportunity could be a company that wants to expand or an individual who wants to buy a home.
The more that people save, the more money that is in the banking system and this increased money leads to more loans and more economic growth. This growth is natural and healthy because people’s savings represent capital they could use in the future for more purchases. Thus, when a business borrows more money and invests that capital to be able to manufacture more goods it is a smart decision because people already have more money saved to spend on these goods.
This becomes a healthy circular formula that is summarized as such: “higher savings” leads to “more loans to businesses” which leads to “more business investment” which leads to “great consumer choices” and of course more jobs are created along the way which further fuels the economy forward.
Well, most of us are aware that the rate of US savings was actually negative last year, meaning we spent more than we made. This is down from saving 7.5% of our salaries only 30 years ago. So we see that this current economic boom has not been built upon by people’s savings.
On the other hand, economies also grow when interest rates are set artificially low as they were set in the US. These low rates spurred the real estate bubble to new, incredible prices never before seen in the US and the world. And the amazing thing is that there is no economic justification for these high home prices outside of the herd mentality thinking that prices will keep going up.
Well, we have passed that point and are now seeing decreasing prices and increasing inventories of homes available for sale.
The problem with banks is that they get caught up in the herd mentality as well, increasing the amount of money they lend for people to buy homes. And not only that, they are doing so in a riskier and riskier fashion using adjustable rate mortgages.
Currently, US commercial banks face incredible risks because over 60% of their total earning assets are mortgage-related!!! Let me repeat that, over 60% of US commercial bank’s assets are mortgage related – a postwar record high.
As a result of the above risks faced by banks any problems happening in the real estate market would have strong negative ramifications for the US banking system. As an example, the Japanese banking system was crippled after the boom of the 1980’s when they concentrated much of their capital in real estate. Japan spent the following 14 years in an economic doldrum and is now just beginning to see the light of day.
Now that interest rates are going up, and will continue going up, people who used adjustable mortgages are feeling the pinch of increasing monthly mortgage payments. As a result, foreclosure rates are up 38% over last year and bank’s bottom lines are feeling this pinch.
Billionaire Warren Buffet recently said that he has been studying recent bank balance sheets and is very concerned about the growing number of defaults on their books.
The point is that even though banks aren’t prepared and well diversified it means that you should be even more so! How to prepare yourself is discussed in detail in the recently issued eReport entitled “Recession – How To Survive and Thrive”.
