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How to manage your personal debt?

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manage your Personal debt

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Personal debt, this one term has different meaning to different people. Some people see it as an enabler which helps them in getting what they want and some people see it as a burden on their shoulders which they seem to hate. In reality, it can be both.

What does Personal Debt entails in the current scenario?

Personal Debt nowadays means debt incurred by a person to buy something he fancies or needs and he can borrow it from lenders like banks, people and other institutions. People take the money from such lenders and usually pay an interest (depending on the principal and interest rate agreed upon) on debt incurred. It also includes credit card debt, automobile loans, and house loans. Recently many banks have started to offer personal loans, gold loans and loans for buying electronics items like TVs, laptops and even mobile phones.

How it can be good for you?

Personal debt can be an enabler. You can buy things you need and want and you can pay as per your need. A person can pay in easy EMIs and doesn’t need to spend from his personal savings, instead he can pay it out from his future cash flows. Thus in a way it is a good thing for people who are sure of a fixed income. One can also hypothecate some of his belongings like gold and house and fulfill the immediate needs of cash.

With Individual Voluntary Arrangement you can also manage your unsecured debt. An IVA acts like a legal agreement between you and the creditor which usually lasts for 5 years. During this period you pay only what you can afford to pay outside reasonable living costs. All interest charges freezes to 0% and  creditors cannot demand for additional payment as long as monthly IVA payment is made. Once IVA has completed, all remaining debt will be legally written off.

But what are the downsides?

Now comes the tricky part. Personal debt can be an enabler but it can also be a rat trap for you. Personal Debt has many downsides and if incurred beyond a limit, it can destroy your finances and economic wellbeing and you can get bankrupt. It can be a great cause of worry if your personal debt is huge but why exactly? The truth is: most people’s sole asset (let’s assume that asset is something which gives you income) is their monthly

salary only. And they have lots of liabilities (let’s assume that liabilities take something out of your pocket). But how it affects them? Well haven’t you felt the money crunch? Lots of people complain that their salary lasts for one two weeks and they barely get by for the rest of the week. Many people who complain about having no savings are the people who have higher than average salaries and many of them belong to families where many people earn. Why is that? The simplest logic is their expenditure is much higher than their income. And this creates a problem. Most of the people nowadays have low survival ability i.e. if their salary stops coming in, they will go bankrupt very soon. Such people are living from salary to salary and have meager savings and high debts(mostly credit cards). This is really a dangerous condition.

High personal debt means high negative cashflow. Many payments are needed to be paid at the beginning of each month thus the amount you can save goes down. Also the money you have for your immediate needs goes down which causes more credit card debt. Also the interest rates are usually very high for credit card debts. Just imagine, if anyone buys a car worth 5 lakh with 2 lakh down payment and 3 lakh loan, the car might cost him around 7lakh with interest.

Don’t incur high personal debt!!!

How to manage your Personal Debt?

Hopefully by now you will be interested in managing your personal debt. There are some basic guidelines which might help you in managing your personal debt successfully.

1. Try to buy things with cash – If you don’t use your credit card much, you will find that you are buying things less than usual. Also it is hard to choose between a hand full of cash and an item (try it). Your expenditure will go down and you will find that you also save credit card dues and fees (even if it is a ‘free’ credit card, there is usually a limit beyond which, it is free of annual charges).

2. Use tools in the market – There are many tools, available online, using which you can bring your debt down slowly. These are developed by financial experts and you can check them out. I found one such debt calculator tool which I personally recommend. It is an excellent tool which can actually help and is easy to use.  It is the debt calculator at www.IVA.com

An IVA theoretically is an Individual Voluntary Agreement which can help you in managing your unsecured debt. You can take advantage of the fixed rates of IVA and use them to slowly and securely pay your debt. This scheme can thus help you in getting debt free and also offers you protection from creditors which many other debt reducing plans like Debt Management Plans do not.

To avail the benefits of IVA you need to get your financial condition assessed by an Insolvency Practioner (IP). A fixed rate will be chosen and then you can slowly pay off your debt. Mostly IVAs can help you finish your debt in a short duration of just five years.

 3. Save more – There is no alternative to saving more. If you have enough savings you can weather many disasters and it will increase your survival ability. Also you will feel much less anxiety if you know that you have enough financial resources to survive.

4. Get income generating assets – You should always try to get as much positive cashflow as possible. Invest in schemes, buy shares or real estate (which should get you some income every month) or operate some side business. It will also enable to retire earlier and live a tension free post retirement life.

I hope that this article has encouraged you to think and maybe have given you some ideas to how to manage your personal debt and finances effectively. Please do share your thoughts on the subject, I would be glad to reply to your comments.

I am a software engineer in a prestigious MNC. I am NSE certified derivatives professional and I like to dabble in money making schemes a lot. I like to read, play subway surfer on my tab and I am always connected to internet.

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How To Improve Your Relationship With Your Customers

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As a company owner, you should always be aiming to improve your business by whatever means necessary. After all, when your business evolves over time, it means that you are adapting to consumer habits and staying on top of current trends – giving your business the longevity it deserves. Thankfully, there are also various ways in which you can go about improving your business. For example, this could include: 

  • Hiring new staff with innovative ideas.
  • Retaining staff who make a real difference in the workplace, reducing employee turnover rates.
  • Investing in new employees by offering unique training programs or giving them a chance to develop new skills. 
  • Developing new products or services that cannot be purchased elsewhere. 
  • Moving from working from within your home and opening up a store or office space. 
  • Updating your business plan regularly to account for your growth. 
  • Brushing up on your finances, ensuring that you stay within budget and spend your money wisely.
  • Reaching out to investors who can help you take your brand to the next level.
  • Introducing a new marketing campaign to increase your brand’s visibility. 
  • Developing a better relationship with your customers. 

While any of the above suggestions are a great way to go about growing your business, the most important is developing the relationship you have with your customers. After all, a business without customers will struggle to stay afloat for more than a few weeks.

With that in mind, here are some ways in which you can begin to develop a better relationship with your customers. 

Know who your customers are. This is perhaps the most obvious ways to improve your relationship with your customers – and it doesn’t mean that you have to memorise every name or face that comes into your store. Instead, you should ensure that you have a clear understanding of your target audience and demographic. For example, while you may have a vision of your typical customer in your head – you need to ensure that this is reflected in the people that actually purchase or use your products/services. There are various ways in which you can achieve this goal. For example, you could: 

  • Monitor consumer habits
  • Host focus groups 
  • Ask for customer information when making a purchase
  • Studying analytics on social media. 

Remember, your target audience may be defined by the following characteristics: 

  • An age group.
  • A gender.
  • A geographical location.
  • Special hobbies.
  • Skills and Interests. 
  • Careers.
  • Lifestyles.

Once you have a better understanding of your target audience, it will be easier to ensure that you are providing them with everything they need. As a result, they will develop a closer affinity to your brand as they feel as though it was made just for them!

Make them feel important. Studies suggest that customers are happiest when they feel important. Therefore, you can improve your relationship with your customers by simply ensuring that you make them feel special. For example, you could attach a note to each order that thanks them for their purchase. Alternatively, you could put a loyalty scheme in place or offer discounts to returning customers – which can help you win over new customers while retaining your old ones. 

Make it easier for them to communicate with you. The key to any relationship is being able to communicate freely with each other. Therefore, you can improve your relationship with your customers by making it easier for them to reach you should they have any questions. For example, in addition to a telephone line, you should give your customers plenty of different ways to contact you. This could include: 

  • A postal address.
  • A customer service specific email.
  • An online chat function.

However, managing multiple different channels like this can prove to be a challenge if you don’t have the right technology at your side. For example, you could use dashboard software, such as those provided by Click4Assistance, to monitor different chats and calls simultaneously. For more information, visit this website

Furthemore, you can also improve the way in which you communicate with your customers by being active on social media. Not only does this mean that your customers can contact you through direct messaging or comments, but it also puts your brand on the map by making you visible to a much wider audience. When curating your social media presence – you should ensure that your content reflects your brand. Don’t focus on overly professional language – instead, try to be as approachable and friendly as possible – as this will help customers relate to your brand. When customers find you approachable, they are more likely to make a purchase. 

Another way in which you can better communicate with your customers is by setting up a mailing list. While they may seem outdated in the world of social media, they are a great way to keep your customers in the loop and let them know about any upcoming product releases. 

Admit your mistakes. As a business owner, how others perceive your brand will likely be incredibly important to you. As a result, this means that you may be keen to bury any mistakes you make so that they cannot tarnish your reputation. However, this is not the right attitude to take on if you want to develop a relationship with your customers – as simply ignoring complaints or negative reviews will only drive them away. Therefore, you should ensure that you respond quickly to any negative complaints and reviews – and work with the customer to resolve this issue sooner rather than later. This also means that you need to be honest about any mistakes that you may have made in the past. Holding yourself accountable will actually make yourself more attractive to potential customers. 

Focus on innovation. If you want to retain customers, you need to ensure that you continue to provide them with new goods or services. After all, it’s unlikely that they will continue to buy the same product over and over again. Therefore, you should work hard to ensure that you remain on top of your game – introducing new and innovative products to the market as often as possible. While this doesn’t mean you should rush to launch a new product or service every month, you should always have a new plan or idea in the pipeline. Furthemore, you should also ensure that the products/services you are working on align with current consumer trends. 

Get online. Another way in which you can develop your relationship with your customers is by making your business more accessible. For example, while many customers may visit your store to make a purchase – others may prefer to shop online. In this case, you need to make sure that your website is up to scratch and easy to navigate. The easiest way to draw in new customers online is by improving the user experience of your website.  For example, a broken link or malfunctioning site does not necessarily make your brand appear trustworthy – while a seamless and functional website will demonstrate your professionalism and help you connect with a global audience. 

Furthemore, you should also ensure that your website is as accessible as possible. For example, you could add audio descriptions of products or text so that those who may be deaf or hard of hearing can navigate your site freely. You should also ensure that you caption any videos or add alternative descriptions underneath images. 

Be great at what you do. Perhaps the simplest way in which you can improve your relationship with your customers by being great at what you do – and providing them with the consistency they require. For example, you should ensure that every aspect of your business is always up to scratch – from product development to administration.  Being great at what you do means that your customers will always stick around and invest their money into your brand. 

Similarly, you should never underestimate the importance of good customer service skills – and you must ensure that every employee is trained within the area. For example, they should be bright, friendly and ready to answer any questions that come their way. This means that they need to develop excellent skills in communication alongside a lot of patience and intuition. This is particularly important when dealing with difficult customers who always complain -but will also allow them to develop lasting relationships with friendly customers too. 

In short, there are various steps you can take to ensure that you improve your relationship with your customers – many of which simply revolve around adopting a ‘customer-centric mindset. By making important decisions regarding your business with the customer in mind, you’ll be able to emphasise the fact that they are at the core of everything you do – thus making your brand appear more attractive and improving retention rates. Furthemore, you can improve your relationship with your customers by making it abundantly clear that you care about them and want to provide them with only the best. Doing so will make it easier for customers to trust you and purchase your products or services.

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What Is Cryptocurrency And Why Is It So Volatile?

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Cryptocurrency has recently made headlines, exploding into the spotlight with the same relentless intensity that characterises its value and demand.

However, as they become more mainstream, they may become confusing. It’s money, but there’s no bank looking after it or controlling it; it’s an asset, but it’s not backed up by anything tangible.

Here is a brief overview of cryptocurrency and a quick look at why it is so volatile.

What is it?

In a nutshell, it is the digital equivalent of money. It is designed to function in almost the same way: users have wallets in which they can keep money, which is used to symbolize value in the economy and can be exchanged for goods or services with others.

Cryptocurrency, like much money in today’s traditional banking system, does not exist tangibly; instead, it is recorded as figures in a database that signify how much of a particular cryptocurrency a certain person has.

However, in contrast to today’s banking system, is decentralised. Rather, it is recorded in the blockchain, which is distributed throughout the network and records transactions in a transparent and verifiable manner that belongs to no one individual or organization in particular.

The first of them was bitcoin, which was developed in 2009 by an unknown individual known only as Satoshi Nakamoto. Since then, a slew of new cryptocurrencies has sprouted up. These include ethereum and dogecoin. It is interesting to look into the background of these, and ask yourself who created Dogecoin?

Why are there so many?

A cryptocurrency can hypothetically be created by anyone; at their foundation, they are just software, therefore anyone can create one. There is no authoritative body that decides what is and isn’t a cryptocurrency.

As a result, dozens of new cryptocurrencies, known as altcoins, have emerged. Some of them have grown into consistent performers, leading to predictions that they could turn bitcoin on its head and become the most valuable cryptocurrency.

Some of these altcoins aim to provide innovative answers to problems that exist with large players like bitcoin, such as making transactions easier or more efficient. Others, such as Dogecoin, which originated as a joke, are developed solely as alternatives.

They sometimes move in sync, with the entire cryptocurrency market fluctuating in response to certain pieces of news. However, traders occasionally switch between currencies, as when the price of dogecoin soared thanks to the support of figures such as Elon Musk.

What makes cryptocurrency so volatile?

Unlike traditional financial assets like stocks and commodities, cryptocurrencies are not valued in terms of what they can be used for; in theory, they are a bet on a company’s future profits or the usefulness of a given material, but cryptocurrencies are primarily a bet on how interested people are in them.

Cryptocurrencies, unlike traditional fiat currencies, do not have a central bank entrusted with employing monetary policy to keep their value from fluctuating too much.

As a result, the value of cryptocurrencies varies dramatically, frequently and without warning, and without always being linked to evident world events.

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Marketing Practices That Could Remain After The Pandemic

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The global pandemic has changed businesses in many ways, and marketing, in particular, has seen a lot of developments over the last year. Businesses have had to adapt to digital practices quickly, which has changed the way they promote their activities. It has also changed consumer behavior, meaning tactics need to change to reach them in new and innovative ways.

While businesses are beginning to revert to some sort of normality, there are some practices that will continue even after the pandemic is over. Discover some of the marketing practices that could be here to stay.

A greater focus on retaining existing customers

The global pandemic has had a huge impact on people’s shopping behaviors. It’s no secret that brand loyalty has been in decline over the years, largely due to consumers’ preference for convenience – especially in the digital age. But the pandemic has made this even more apparent, with many consumers switching brands as a result of supply chain issues and more. For businesses, putting your energy into retaining your existing customers could yield better results than trying to win over existing customers. 

The resurgence of the QR code

Just over a year ago, people might have turned their nose up at the idea of using a QR code in a marketing campaign. Did people know what they were? What did they achieve? Well, thanks to the pandemic, QR codes have had something of a resurgence. Exploring QR code APIs can help you work out how they can be used in your marketing campaigns effectively to bring the best results for your business. QR codes are capable of generating some great data, helping you measure the effectiveness of your marketing campaigns.

Localized marketing

The pandemic has shifted a lot of people away from busy cities and urban areas, and into more rural neighborhoods. This has meant that businesses are having to change their marketing tactics to provide a more personalized, local feel that better aligns with changing behaviors. People are choosing to shop locally and choose local-based businesses, and you’ll need to think carefully about how you can form better engagement with those audiences to help spread the word about your business.

Bigger budgets for social media advertising

With people spending more time at home, they are more active online watching box sets, shopping, gaming and more. This means they might be less likely to see more traditional advertising such as billboards and subway signs. Social media advertising can help you reach those audiences, providing a great ROI compared to other forms of advertising. Ensuring social media is a firm part of your marketing strategy can help you reach your audiences where they are, and even save money compared to your spend on more traditional advertising. 
Change is nothing new for the marketing world. The pandemic has seen some major developments, and as we enter the ‘new normal,’ it will be interesting to see what comes next. Staying up to date on current marketing trends can keep your business relevant, and help secure the best results for your business – no matter what’s happening in the rest of the world.

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