Thursday, January 29, 2015

How to Use Credit Reports to Get Out of Debt

Getting out of debt is a common goal for a lot of people this year. Debt can prevent people from living the stress-free lives that they want to live and even affect other people in their lives. Debt is something that no one wants to have hanging over their head, but sometimes, debt is inevitable. This does not, however, mean that people need to continue to live with debt. 

How to Use Credit Reports to Get Out of Debt

There are a lot of methods that people can use to get out of debt. One of those methods is using the information on their free credit report from CreditSesame.com. Credit reports can give people the tools they need to not only get out of debt, but to use their debt to propel themselves forward and create a better financial future for themselves and their family. Anyone can use these ideas to eliminate their debt and live better. 

Here are some ways to use credit reports to get out of debt. 

Find out how much debt there is

Many people in debt do not even realize the extent of their debt until they begin the repayment process. Credit reports can help people see exactly how much debt they have in order to get started on the path towards repayment. 

Assess the damage already done

Every debt is different. Some people will have debt that is small and helping them build their credit. However, many people also have debt that is causing issues for their wealth building and actually damaging their credit. People can use credit reports to see how much damage has been done to their credit because of debt in order to begin repairing the damage. 

Understand which debts are creating the biggest issues

Once a person has gotten a better picture of their debts, they can begin to create a plan for payoff. Many people think that the highest amounts should be dealt with first, but this is not always the smartest move. Instead, people can use their credit reports to see what debts are causing the most damage to their financial standing and work to pay those off first. 

Know which debts can be left alone for now

In addition to knowing how much debt there is and what debts are creating the biggest problems, people can use their credit reports to understand which debts are actually beneficial. Having some debt that is being continually paid towards regularly can actually help a person build their credit and create a more stable financial future

Make full payments to remove debt collections from future credit reports

If a debt goes to a collection agency, it can show up as a red flag on a person’s credit report. This is of course an issue that people can struggle with for years. Anyone can work with their debt collectors to not only pay off their debts, but also find a way to have them remove the mark from their credit reports.
Carry On Reading.....

Wednesday, January 28, 2015

Get Out Of Debt And Stay Out Of Debt For Life

Debt can be soul destroying. You can come to dread the sound of the phone ringing or the doorbell going for fear it being a debt collector. We can get into debt for many reasons. Sometimes we have to make a big purchase. Other times, we live a lifestyle that is simply outside of our means. It is incredibly easy to lose sight of how much you are spending, even if you have prepared a budget. We give you five top tips to get out of debt and stay out of it too.

Stop spending

Get Out Of Debt
This may sound harsh, but you may have to rein in your spending for a few months to stop the debt getting bigger. This gives you an opportunity to catch up with some repayments. Yes, you will have to go without for a prolonged period but living frugally can still be fun. Most of us remember grandparents or great grandparents who really didn’t have a lot, and yet they were the happiest people we knew. If you can sell anything that is surplus to your needs, you may be able to raise enough cash to pay off a whole month’s repayments.

Get another job

Another source of income could be essential to clear off your debts and get you back in the black. You can work from home for a couple of hours in the evening without it disrupting your life too much or get a Saturday job. Search online or look at ideas like those from Income Store's alternative investment concept to find additional income sources. Every little helps, and just a couple of extra hours employment could cover your credit card interest for the month. If you teach or have some skills you could pass on to others, this can also be a useful source of income. This can be done in your own time on your own terms too.

Make a very strict budget and stick to it

Remember to keep the essentials on there. Food, rent, utilities, taxes, fuel and car payments cannot be dropped. Clothes shopping and visits to the salon can be sacrificed, and you can even put gym and cell phone contracts on hold for a few months too. Cut out takeaways, holidays, sweets, booze and other things that are not essential. When the debt is managed, you can slowly reinstate things again. Try withdrawing the cash each month. Once it is gone, it is gone, and you haven’t overspent. Prepay credit cards can work the same way if you are worried about security.

Keep a close eye on where your money goes

If you haven’t done so already, take an hour or two to analyse deeply what you are spending your money on. A credit card or bank card statement will be quite revealing. Total up all the things you bought that were not essential to you. That is the sum you can be saving every month if you strip your life bare of non-essentials.
Carry On Reading.....

Saturday, January 17, 2015

Make a financial resolution and follow it

According to the last year you can definitely say what your financial movements impacted your financial life significantly. This might be a vacation in the Canary Islands or a purchase of a new car. Also you might have been working hard during all the year. Or just invested money in good company and your shares cost much more now.

financial resolution

In other words you have been obviously doing a lot of different things, but the main one you must have missed. I say about money resolution.

For those who think that this is too easy, I would like to present a new survey. According to it more than a half of all people who had done a money resolution before the 2014 year came, had a financial progress during the last year.

So if you understand the necessity and usefulness of resolution, you should always try to follow it. Otherwise there will be no effect of having a resolution, if you can’t stick to it. That is why to realize your financial goals for the new year, you need to make your resolution realistic and achievable.

To help you succeed with your resolution we want to recommend you those three steps offered by financial experts:

1. Make definite goals

Increasing your emergency fund will be a great financial resolution. But if you just think about saving money, but in reality do nothing, it will not help you.

At first you need to think about your abilities and decide how much money you can save monthly. Then you will understand that it is not so difficult to realize. Just set a definite amount according to your monthly income and make this money go to your saving account. 

However you can always come across financial necessity that your salary does not cover. In such situation you can always visit easy loan site and get quick monetary assistance. Because no one can save you from unexpected life situations. 

2. Make an everyday tips

When you work for definite financial goal, it is very important to create some things that will encourage you. You need to have a plan of such conditions that will attract you. So you will be interested in fulfilling any step towards your dream.

Also you can find any appropriate solutions for your everyday necessities. You can choose less expensive restaurant for meeting. Use a public transport some days a week.

If you change your mind according to these instructions you will easier react to such changes in your life and less depend on money.

3. Separate your finance from your emotions

You might have been in debts and wanted to return all taken money. So you made an obvious goal to pay all the debts back. But you did not succeed. And the reason can be just as simple as you made the wrong goal.

You might be just afraid of realizing this part of plan, because then you will have no other financial goal, so you try to slow down the repayment. Also you can be worrying about the possibility to get into debts again, after you return the existing ones.

Your brain can create a lot of fears for you, so if you can determine the one that prevents you from realizing your goals, you can solve it. You can calm down your brain and change the set, so you will achieve your goals easily.
Carry On Reading.....

Thursday, January 15, 2015

How To Get Out Of Debt: In 7 Steps

Getting into debt is a lot easier than people think. All it takes is a bounced bank cheque or an exceeded credit limit and the charges start flying in. Whether you got into debt after exceeding your credit limit or after taking out a loan you couldn't pay back. It can sometimes feel impossible to get yourself back out of debt again. 

For many people, debt can cause a lot of worry, stress and anxiety, but there is no need to panic, there are many ways you can get yourself out of debt. Tackling your debt problems and taking control of your finances will relax your mind and reduce your stress levels. 

Get Out Of Debt

You can begin getting your finances in control by following our seven simple steps to get out of debt. 

Step 1 - Admit that you are in debt

Instead of hiding away from the truth, acknowledge that you are in debt. You may not realise it, but even reading this article is a positive first step to dealing with your debt. 

Once you admit that your finances are out of control, and you are struggling, you can then start finding solutions to help. 

Step 2 - Make a list of your income and spending 

It is important to look realistically at your debt problems. Making a list of your income and outgoings will allow you to see where all your money is going each month. Making a list of your income and spending is also an excellent way to begin organising your finances. When you see what you are spending all your money on, you may be surprised by how much of it you waste on unessential buys. 

When you make your list make sure that you write down all your income and all outgoings, from bills and rent payments to school fees and food shopping. Making a list will allow you to look at your spending habits realistically and see whether there is anything you can live without or where you can cut costs to save money. Any money that is spare, after paying bills and rent, etc. should go towards reducing your debt. 

Keeping a list of your in-goings and outgoings can also be used to show the company you are in debt to, how you are managing your money and trying to pay off your debts. 

Step 3 - Increase your income 

Consider whether you are getting all the income that you could be, perhaps you are eligible for government benefits and payouts. If you are unsure what you are entitled to, make an appointment to speak to a financial advisor to discuss it. 

Another way, to boost your income, is to work longer hours, ask for a pay rise or apply for a part-time job working at Wendy’s. By applying for a second job, you will increase your income and be able to pay off your debts more quickly. 

Step 4 - Make some cutbacks 

It might be hard to start with, but a simple way to reduce your debt, is to make cutbacks where you can. Look at your spending list and work out where you can make savings - do you really need a Starbucks latte every morning? After a couple of weeks, you will find that cutting back is not that hard and  that by making a few small changes, you can make significant savings. 

Think about places you can save money:

How could you reduce your transport cost? Instead of driving everywhere, perhaps you could take the bus, walk or cycle to get around? Alternatively, why not look into car sharing, it’s an amazing way to cut your travel costs. 

Get Out Of Debt: In 7 Steps

Perhaps you could save money on lunch - take a homemade lunch to work instead of buying from the canteen. Instead of buying lots of luxury foods, stick to a simpler diet. To save money, make all your meals yourself, instead of buying ready meals or takeaways. 

Could you be saving money on your bills and utilities? Look into switching energy supplies and other utilities companies. Go online and compare the prices you are paying, you may not realise it, but you may be able to save money by switching to a different supplier. 

Step 5 - Prioritise 

Once you have worked out how much money you have spare each month, it is important to prioritise your debts. Sit down and work out how much you owe to each company, and then decide what you will pay to who each month. 

Commit to making regular debt payments, even if they are only small amounts. If the companies you are in debt to see that you are taking your debt seriously, they will be more supportive and flexible with you. 

Whilst it is important to get all your debt paid off, some debts should be prioritised over others, such as debts that will have worse consequences if not paid. Things like mortgage and rent payments, tax bills and utility bills should take priority. 

Step 6 - Get in touch 

You should now have a list of your incomings and outgoings, a list of debts that take priority and list of those that don’t. The next step is to get in contact with the companies you are in debt to and start communicating and negotiating with them. 

Send each of the companies you are in debt to a letter or email explaining that you are struggling with financial problems. Explain how you ended up in debt and how you are going to get out of it. Include a copy of your list of debts and monthly income and outgoings with the letter or email. 

You should find that most companies will be empathetic and find ways to help you pay back your debt in small monthly instalments. 

Step 7 - Create a long-term plan 

Sit down and think about how you are going to get out of your debt in a long-term sense. To help you decide the best way to proceed, get in touch with a debt charity or book an appointment with a financial advisor who specialises in debt.
Carry On Reading.....

Making the Most of Your Earnings

Personal financial management is a responsibility every citizen shares, so each person has his or her own approach to staying solvent.  Unfortunately, challenging economic conditions and unexpected expenses impact everyone, so cash flow problems are more common than you might think.

Though each person's finances are unique, there are practical money management strategies available, which can be applied to a variety of scenarios.  Use these tips to make the most of your income and earnings, without sacrificing the lifestyle you work hard to achieve.

Live Within Your Means

Recognising your financial limitations is an essential feature of realistic budgeting and long-term financial success.  To establish your baseline spending levels, start by comparing your income to your ongoing financial obligations.  Your budget should be broken into spending categories, enabling you to track exactly where your money goes.  As you take-in the big picture, you'll quickly learn your outgoing cash flow generally falls into two categories:

Fixed Costs - Essentials like shelter, food and transportation account for a significant share of most individual budgets.  Many of these expenses are considered "fixed" because payments are often regular and ongoing. As a result, consumers must cover these costs each month or payment period, rather than one time, like most discretionary buys.  Mortgages, car payments, insurance bills and other recurring obligations fall into this category, representing the immovable minimum sums required to keep a person in the black.

live within your means

Due to the continuing nature of fixed costs, it is essential to keep obligations within your means. When earnings are insufficient, the struggle to keep pace with fixed payments can result in serious credit consequences for borrowers living beyond affordable levels. Default, foreclosure and other delinquencies result from poorly managed fixed costs - taking on more debt than can be paid back timely. Keeping fixed costs in-line with your income, on the other hand, sets the stage for long-term financial success.

Discretionary Buys - Beyond the fixed cost of debt repayment and other monthly obligations, spending is discretionary.  Like most consumers, you are faced with countless spending opportunities each day.  These daily spending decisions have a dramatic impact on your bottom line. Entertainment, meals out, travel and fashion are common discretionary spending categories, which should be managed to reflect your income.  For many, however, entertainment and leisure expenses quickly outpace incoming resources.

Save Money Whenever Possible

When incoming cash flow is consistent, the only way to free up funds is to reduce spending.  Saving money actually gives you more discretionary income to work with, so there is plenty of incentive to cut costs whenever possible.  These examples highlight a few of the ways you can trim expenses:

Redeem Rewards - To lure customers and stand out in competitive markets, businesses increasingly extend rewards programs.  Credit cards, of course, are among the most prolific sources of customer reward programs, which extend everything from cash back to airline tickets.  Merchants offering rewards generally do not require fees to enroll, but credit card companies attach annual fees to rewards cards.  For an offer to suit you, your spending rewards need to exceed the card's annual fee, or it doesn't make sense for you to participate.

Tighten Your Supermarket Budget - Food savings add-up for shoppers committed to making the most of their money at the supermarket.  Store promotions are one source of savings, but you can also save money by tracking everyday prices through online comparison sites. Own-brand versions also furnish economical alternatives for widely used consumer goods.

Evaluate Memberships - Subscriptions and memberships are a source of waste for many families, who save money by eliminating unneeded services.  From gym contracts to monthly magazines, trimming unused subscriptions leads to savings month after month, once they are cast aside.

Manage Energy Use - Conserving energy has a direct impact on your bottom line, and there are several sources for savings.  Home heating and electricity use, for example, furnish opportunities to trim costs, as well as petrol used on the road. Starting with consciousness and awareness, incremental energy savings lead to long-term budget relief for disciplined consumers.

Remortgage for Savings - Market conditions change continually, so remortgaging may lead to lower payments than your current contract.  Lower monthly payments furnish resources that can be directed elsewhere, so a new home loan makes sense for many borrowers.  Before committing, make sure the savings cover the cost of your new loan and that there are no hidden fees.

Informed consumers make the most of their earnings by managing expenses and trimming costs. To keep your budget sound, chart your income and outgoing expenses, with an eye toward saving opportunities. As long as your resources cover your fixed obligations, and you control discretionary buys, your financial outlook remains stable.
Carry On Reading.....

Tuesday, January 13, 2015

New Paradigms in Estate Tax Valuation

Assets that are held in estates may comprise of family limited partnerships, real properties, interests in partnerships, limited liability companies, common tenancies etc. For businesses and individual property owners, value of interests in the aforementioned assets becomes an important piece of information when transferring interests in estates or when planning estates. 

Business interests must be valued when they are transferred as a part of an estate or as a gift. To overcome the IRS challenges, you will need a professionally prepared and well documented valuation. If you are not in a position to prepare this valuation, then you will have to hire qualified and experienced valuation professionals who are accredited by reputed organizations—which are recognized by IRS. To provide well documented and supportable valuation analysis, valuation services work closely with accountants, attorneys and other financial planning professionals. Most financial valuation services cater to a wide gamut requirements including estate planning, charitable contributions, succession planning, family limited partnerships, gift and estate tax reporting etc. Out of these, gift and estate tax reporting is considered to be very challenging and demanding.

Estate Tax Valuation

There are many estate tax valuation services and selecting the best one can be a daunting task if you are not aware of the key characteristics. When you select a business valuation service, you will have to check their confidentiality terms and conditions. By and large, most business valuation services will not disclose your financial statuses and if they do, then it will be only for demo purposes. If you are a small business owner, it is imperative that you look out for a comprehensive and supportable valuation of your business, which is necessary to address potential IRS problems and challenges. When you meet the business valuation services for the first time, you will have to understand all pertinent facts and circumstances before you arrive at a deal.  

There is a standard process for business valuations that needs to be understood quite properly. There are some very important questions that need to be answered before the valuation process. Here are some of these questions: Who is the engagement for? What is the interest being valued? What standard of value will be used? Whose standards are being adopted? What is the premise of value? Once you have the answers to these questions, you can immediately start with the valuation. The main purpose for valuation is for gifting of interest to future generations. 

Estate planning is also done to minimize estate taxes. You would also do a business valuation to find out the value of your business in your estate. Finally, you will need to do business valuation because the IRS requires it. There are some very important terms that you will have to understand when you are planning for business valuation. These terms are fair market value, investment or strategic value, intrinsic value, fair value, liquidation value, etc. When you are with the business valuation consultant, you can ask him or her to explain the meaning of these technical financial terms.  
Carry On Reading.....

Sunday, December 21, 2014

Eliminate all of your debts - 4 Frugal living tips at your disposal

Consumer debt is on rise again to threaten the financial balance in life. With numerous credit cards, mortgage loans, student loan and lots of other financial obligations, it becomes almost impossible for most people to live affluently. In such a circumstance, the only thing that you can do to perpetuate financial stability in life is to live frugally. Frugal living will not only help to save more but you’ll be able to get out of debt also.

Live frugally - You only need to follow these tips

Frugal and cheap are almost synonymous. Still, there is a certain degree of difference between the two terms. Living frugally doesn’t mean that you’ve to live cheap. It’s all about living within your means. Here are a few simple tips that may help you to live frugally without scrimping too much:

1) Save some more every day: Make it a habit to save everyday. You can save from your everyday shopping. Bargaining is good as it helps to save enough. So, you shouldn’t neglect bargaining whenever you’re out for shopping. Buy in bulk and look for discounts. Whatever you save, put that aside for your future, even if it’s a single dollar. you may even automate your savings. Every month whenever your paycheck arrives, make it a point to transfer a portion of it into your savings account. Regular savings will make it easier to build wealth and secure financial future.

Eliminate all of your debts - 4 Frugal living tips at your disposal

2) Earn more according to your capability: Frugal living is fine, but if you’ve too much responsibilities to take care of, then only cost-cutting won’t be enough. Why don’t you try to increase your income? Yes, you may opt for a part time job or ask for a raise. Have unused extra rooms in your house? Look for tenants and rent out the unused rooms. Sell the junk items stored in the storeroom of your house. All these things will help to generate some extra money. Use that extra money to take care of your financial obligations. 

3) Take care of your retirement savings: It’s not that difficult to manage the expenses, till you’ve a job. After retirement, when you won’t have any steady source of income, managing expenses will become a challenge. So, you need to make sure that your life after retirement will be financially safe. Ask your employer to provide 401(K) plan. In this way a portion of your income will be automatically saved for your life after retirement. The amount you save for retirement is tax deductible. So, by saving for retirement you can relish tax benefits as well. That’s definitely an added advantage.

4) Never let your debts destruct your finances: You should work hard to eliminate your debts successfully. Debts come with interest rates charged on them. So, with time your debts will keep growing. You should pay off your due debts as soon as possible. Talk to your creditors and consolidate your debts, especially the due credit card bills. Interest rate charged on the credit card bills can make you lose enough of your savings. So, ask your creditor to lessen the interest rate charged on the due bills. This will help to pay off your debts soon.

Apart from following these 4 tips you should also take care of some other factors. Like you should use your credit cards carefully, avoid following a lavish lifestyle and become a responsible consumer. Remember, just a day’s saving or budgeting won’t help you at all. You need to be persistent in your efforts to achieve a financially stable life. So, just get a more responsible attitude as a consumer and live a debt-free financially secure life.
Carry On Reading.....

Wednesday, December 10, 2014

A Checklist Before You Buy Property in India

Buying a new property is exciting but also a very tedious work that needs a lot of caution. The property should be verified in various ways before buying it. You really like the new projects in Ahmedabad and you are planning to buy it. But you are confused how to go about with the procedure? Let us help you out. You should keep some things in your mind before buying the property. Or better yet, make a checklist.

Legal issues

It is very important to check the title deed of the property. It is necessary that the property you are about to buy should be under the name of the seller. In fact you should try and look out for the original papers and not copies. This will also give you an information about the kind of usage permitted on the property, whether it is residential or commercial or both.
 
Buy Property

Land measurement

It is necessary that you measure the property before buying it. There are high chances that the seller has put wrong figures in the documents. So, it is very important to measure the land confirm, before you buy it.

Kind of property

It is advisable to find out if the property is leasehold, freehold or government accommodation. Leasehold property means you can live on the property rightfully for a given amount of time. Freehold property on the other hand means the land on which the property is built is owned by you. In most cases it is better to have a freehold property.

Pledged land 

Many a times, people take loans from banks to buy properties. You must make sure that the seller ahs paid his dues before you buy the property. It is very important for the seller to have the Release issued from the bank.

Check receipt and bills

Our government takes property taxes from us, while buying a new property we must ensure that the seller has paid his taxes and has a receipt of the transaction. We must also check if the other bills like electricity, water and taxes are paid and not left behind for the new owner to pay. If any other notices or applications that concern the property are in question, they must be taken care of at ones. When you buy the property, no bill, nothing should be kept pending by the seller.

Certificate of Encumbrance 

Encumbrance certificate certifies that the property is not mortgaged. This certificate is available at the sub registrar’s office. In case if the land is mortgaged or has any dues pending, they must be paid by the seller before he sells the property.
      
One must be very sure about the property and also the documents before buying the property. This helps to avoid the legal problems, if any. The documents of the land on which the property is located should also be checked before finalizing the deal. It is important to check all the documents, bills, receipts and certificates before you put your money in it. The new projects in Ahmedabad look very promising, now that you have checklist, go grab the new flats in Ahmedabad. You must to have a healthy discussion with the seller about the property. Make him tell you every smallest detail of the property and also the locality. If you are planning to stay in the house, you must know what kind of people and things you will be dealing with. You should know everything about these new flats in Ahmedabad.  It is best to have ones doubts and queries before going on with the transactions.
Carry On Reading.....

Thursday, November 20, 2014

Increase Price to Increase Demand

When something is more expensive, it must be better. This is a typical consumer mindset. The logic behind this assumption is simple: I do not know what materials are used to make the final product I use, however the manufacturer who uses the best raw materials to make a quality product will also charge the most for the same product. So logically the most expensive product in its class is also likely to be the best therein. The entire premium market segment survives on this mindset.

Make the customer desire the ‘exclusive’ product

Even those manufacturers who are not using the most expensive materials in production have now begun to price their products exorbitantly. This is in light of the idea that in order to make a man covet a thing, it is only necessary to make the thing difficult to attain. Consider Tom Sawyer from Mark Twain’s book, painting a fence on a holiday. It is dreadfully tedious work and young Tom has been given the task as a punishment by his aunt. There is nothing Tom would like better than to laze but he must finish this task.
 
Increase Price to Increase Demand

Then the genius uses a superb marketing technique and sells the task to his friends as something that only a true artist can be trusted to do. Not just anyone could wield a brush and create master stokes! What was so far an undesirable chore, was suddenly converted into an activity that all his friends yearned to do. So much so that they were willing to pay Tom in order to have the privilege of painting a section of the fence. Tom sits back in the shade while his friends finish painting the fence.

Create a demand for your product even if none exists

So what if it’s expensive and of not much practical use, I can afford it. That is the reaction the marketer is hoping to invoke in the customer. Consider the case of Tahitian black pearls. James Assael was an Italian diamond dealer who made his fortune selling waterproof Swiss watches to the American army in WWII. After the war he was left with a huge inventory that the Americans didn’t want. Now Assael sold the watches to the Japanese who could not pay cash but bartered them for pearls.

His son Salvador Assael made a killing with pearls and attracted the attention of a Frenchman called Jean-Claude Brouillet in French Polynesia. Assael was told about the black lipped oysters that produced black pearls. There was no demand for this particular product at the time, but Assael invested in them and took them to Harry Winston, a legendary gemstone dealer. He put the black pearls up in his Fifth Avenue store with an outrageously expensive price tag, and the rest as they say is history. Today Tahitian black pearls are considered the most exotic and sought after in the world.

In order to increase the demand for your product it is necessary for the customer to associate it with exclusivity and a status symbol. This works especially well in the premium products range. The more expensive the product the more desirable it becomes.

If you plan to get out of debt by setting up your own shop, keep this little psychology lesson in mind. Set up a fancy store/website. Make sure to package your goods well, let people associate a sense of luxury or rarity with it. This will not be easy. The product will actually have to be outstanding. Make it easy to buy - not by pricing it low - but by accepting credit cards and offering convenient shipping options. Let your product be one of the kinds that people like to boast about having purchased. And then watch your sales grow!
Carry On Reading.....