You didn’t plan to get laid off or the insurance company not to pay your claim. That’s not your way; you have always been self-reliant and independent and paid your way. You have been slammed and knocked down, but you know that you will get back on your feet given some time.
There is the stress of constant phone calls from banks and finance companies and the simple lack of money. There is seems to be no way out but to chuck it all in and declare bankruptcy. At least that will get everyone off your back.
Bankruptcy will stop the creditors in their tracks. It will stop them calling and harassing you. It will allow you to re-group and get things back on track. And sometimes there is no other alternative if you debts are too big and too overwhelming.
BUT Bankruptcy is no walk in the park. Bankruptcy is like financial nakedness. You are stripped of all but the bare essentials and made to parade around wearing that burden in public. Bankruptcy sure isn’t for the modest. Your name is put on a public register and remains there for 7 years, You needRead More
Many people try to do whatever they can to avoid bankruptcy, for some people this includes entering into agreements with companies that promise a lower payment by consolidating their debt. These companies come in a variety of flavors. That is a topic for another time though. What many of them will do is enter into an arrangement with you where you make a monthly payment to them, then they either hold the money until they have enough to make an offer on any one particular debt, or they make small monthly payments to all of the creditors at once. The problem is, this doesn’t stop those creditors from negatively reporting to the credit bureaus. It also doesn’t necessarily stop the creditors from suing you in state court, obtaining a judgment, and garnishing your wages. Another problem is that if they do settle, it will show up as settled for less than full amount which hurts your score. On top of that, if you settle, you will likely get a 1099 from the company and likely will have to claim the forgiven amount as income on your taxes. That will either meanRead More
Any expert who was looking at the situation from a purely mathematical perspective would have known years ago that the Greek debt is simply not payable. The real mess had been created when loans were being given out to the Greeks. That was the time when debates would have made sense. Around 2009, when the world woke up to the Greek crisis, it was already too late!
Greece,was like a college student who had somehow gained access to multiple credit cards and now had such a huge balance that bankruptcy seemed like the only option. The revenue generated by the Greek government from taxes was not even enough to pay the interest due on the debt! So the Greeks simply did not have the wherewithal to hold on to this debt till eternity even if they wanted to. They were going to default even if they simply made an attempt to pay the interest due on the loans.
Instead of accepting the situation and letting the inevitable happen, the IMF and others came up with an ingenious plan. They would lend the Greeks more money at an outrageous 14%Read More
Some billionaires have risen above others by avoiding payment to contractors and others who have supplied them with goods, such as buildings or vehicles. They moved their money into trust accounts or created off-shore accounts where such was drained off over time. Some also use a spouse or partner to gift money to while their business was operational.
The problem is they have left others to face bankruptcy who they then refused to pay. These are usually the contractors and their sub-contractors that usually involve small family businesses that cannot sustain big losses.
Money is an invention for power and some think that the world owes them so they don’t care who they hurt in their rush for the biggest slice of wealth. So how does the little guy avoid going into bankruptcy.
Years ago this was a problem faced by me when a shift in the economic security of Australia saw an inevitable depression hit my business. It was heightened, however, by a break-down of marriage and three teen-age children dependent on me. The situation was extremely dire as I owed money to many that could not be paid back.
Working my wayRead More
You can create a budget simply by using a paper and pencil or using more sophisticated monthly budget planner tools that come pre installed with templates and a variety of options that help you stay in control of your finances. However, here are some basic tips to create a budget for both individuals as well as business owners.
Most people tend to create a budget but fail to follow it. Even if you miss your targets the first few times, you must ensure that you start keeping on track. As you practice this, you will realize that budgeting is a useful tool that really helps you to save your money and make informed spending decisions.
You must know exactly how much savings you currently have in each of your accounts along with the interest rate that applies to it. This information is important in determining your net worth and how you should use your capital in the future.
If you work in an industry where your income keeps fluctuating, it mayRead More
For many budgetholders people are their biggest cost. Therefore this article sets out to look at some of the issues around people costs.
Issues such as: “What’s the cost per day of my people?” “When should I use agency staff, temps and contractors?” “My workload is seasonal, my staff aren’t. How do I manage?”
“There are 260 working days in the year, so my team member on a salary of £26,000 costs me £100 a day. Right?”
It’s the obvious answer, but it’s wrong!
A gross salary of £26,000 pa is less than the full cost of employing the team member. The employer also (often) pays employment taxes. In the UK this is Employer’s National Insurance, in 2014 this is 13.8% extra on the gross salary. Then there are the employer’s pension contributions (often 5% to 10% of gross salary in the UK). There are other benefits in kind (company car, private health cover, etc). Not to mention the cost of training, equipment (PC, tools, uniform, desk, etc), and any other employment costs.
All of these can increase the costRead More
It’s good to have fun, but you need to save; therefore, it’s wise to cut on movies, drinking, and other activities that take up a lot of money. If you need to have fun, you should always consider cheaper alternatives.
For example, instead of renting a movie from the movie store, you should consider other alternatives that will allow you to watch the same movie for free.
Since friends greatly affect the amount of money that you spend for entertainment, it’s wise to avoid those that are flamboyant.
One of the major things you need to do is to learn how to cook. Cooking at home is not only cheaper, but it’s also healthier. While it’s tempting for a single woman to buy food at a fast food restaurant, you should not do it.
If you don’t know how to cook your favorite food, you should consider joining a cooking class in your area. You can also join an online class and learn how to cook.
If you have to eat out, you should look out for promotions that are common with restaurants. The restaurants often place coupon codesRead More
Since I can remember I’ve had an interesting relationship with money and how I choose to use it. I was raised by a single mom, who worked extremely hard to make sure my sister and I had a roof over our heads, food to eat, and clothes on our backs. To say it plainly, I don’t come from a lot. As an observant young kid I noticed that at a relatively early age. As a kid I got $100 from my grandma every birthday. Most kids would hit the mall, toy store, or any store that contained something they wanted because that money would burn a hole in their pocket. I on the other hand always waited. It wasn’t that I didn’t want toys, new clothes, or something shiny to impress the ladies with. I just knew that I felt better with the money in my pocket then spending it on something that I could only use, or wear at certain times. My goal was to save it and use it only for emergencies or until I found something that could help me in the long run.
The issue most consumers have is that many think forRead More
Over the years, due to several reasons like recession and inflation the value of money has only increased and this trend is likely to continue in the foreseeable future. However, its abundance is unlimited, not everyone is entitled to be a millionaire in their lives. Unless you inherit it from your ancestors, you have to earn every penny.
With the right experience and talent, anyone can earn money but the toughest part is to save them. Every individual is subjected to some kind of temptation or the other which they like to indulge in now and then. This is mainly the reason why most people fail to save a substantial amount in their lives. Yes, the basic reason to earn money is to support our standard of living but it’s not the end of it. You are not going to earn forever; there will come a time when you have to retire and this is the period when you will require money the most. It can be frustrating time for you if you do not have any savingsRead More
The first problem that people have with budgeting that I would like to help you solve is having unrealistic expectations. This is probably the most common mistake when trying to make a budget. Basically what happens is that most people get these ideas in their heads that they’re going to save a big amount of money per week/month/year etc. While it’s a great notion to want to save a big amount of money, most people have a hard time actually sticking to it. A good of example of this actually comes from my personal life. I have a friend who’s a little older than me, and she went to Bradley University in Peoria, Illinois. Additional she chose to live in the dorms and not commute. When she graduated a couple years back, she realized that she needed to make a budget so she could put aside money to pay off her student loans. Because she wanted to pay off her loans quickly, she decided to save a fairly good amount of money in comparison to her income. Due to this, she had a hard time sticking to her budget and would often times break it. Naturally, she hadRead More