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.
How To Be A Better Boss For Your Business
Being a better boss for your business is essential because not only do you need to be effective for your company to be successful, you also need to be a good leader to your staff. Here are some tips on how to be a better boss for your business.
Listen To Your Staff
Staff are there to keep your business going, and without them, you’d probably not be in the position that you are now. So a good thing to start doing more of is listening. A lot of leaders will tend to struggle with this skill because leading usually involves a lot of management and talking to people. Getting this balance might take a little time, but if you’re making a conscious effort to listen more and to not interrupt so much when staff are speaking, then you’ll definitely see an improvement between you and your working relationships with the staff. Not only that, but it’s going to make your staff feel valued and as though their opinion counts for something in the company. Having peacekeeping actions in place to make sure everyone is happy with one another is important too.
Reward Your Employees
Your employees are likely working very hard for you, and it’s good to make sure that you reward those staff members who achieve great things for your company. Think about what would go down with your employees in terms of rewards, whether that’s a bonus at the end of the year or even a promotion if you feel like they’ve done really well. Recognizing their efforts is important to them, and the more you do it, the more likely it will be that they stay for longer within the company. Don’t give them excuses to leave and instead give them more reasons to stay.
Be A Role Model
Being a role model for your staff is going to help them make the right choices within the company, and when you’re introducing something new, you need to be the first to embrace it. As a leader, everyone will look up to you and expect you to be working hard to make the company more of a success than it already is. Sitting back and just counting the money isn’t going to look the best, and you may have staff slacking because of the lack of work you’re doing.
Be Reasonable With Your Expectations
Expectations are something you want to be reasonable with when it comes to the goals and objectives you set for the company. You don’t want to overwork your staff, otherwise you’re going to have a lot of tired and unhappy peers. Be realistic with your expectations, and if you want to set ones that are beyond the time restraints or abilities of your current staff, then you’ll want to hire more people.
Being a better boss is good for your business, but it’s also good for your staff to have a leader who leads properly and not without thought for anyone else.
Explore What May Work Better For Your Business
What works for one business is not necessarily going to work for another. But one mistake that many small business owners make is chasing solutions that they see working for other businesses. It leads to the copycat style of business, and it’s not always going to do good. It’s easy to follow in the footsteps of those that have gone before you, but now that the business market is so crowded, following what someone else is doing is not going to get you anywhere. Being in business should be about being innovative and successful. We know that someone is always going to have done what you have done, but you should be figuring out what works for your business based on your own ideas. There are ideas such as marketing techniques that work universally, but there are some things that we’re going to discuss today. We want to show you how you can explore what may work for your business, and the areas of your business that might need a little boost at this time of the year. We’re still very much in the New Year dip in terms of sales, so hopefully this will help you boost them!
Better Business Management
Better business management is obviously going to improve the chances of success of your business. We’re not all born to manage a business, and often, the modern day entrepreneur is setting up their business without a clue what they’re doing. There are some that start out having been a manager at a company before, but still, the actual processes of running a business are all a learning curve. Some of you may not have learnt as well as others. Although you will have learnt how to make sure your business is running, when you get to the stage of hiring employees, you’ll realise you don’t know much about business management. About how to get a team of people working together to do the work that you used to do on your own. So better management techniques could be monthly meetings to check in on your employees, even if you only have one. Get them to explore share their worries and support them. Business is always going to work better if you do.
Better Data Management
Data management becomes essential to a growing business. Filing away loose pieces of paper, and using computer systems to electronically organise files is not going to work. There are only so many folders and documents you can store before it gets too chaotic, especially for a growing business. So you suddenly require a database, and enter this alien world that you don’t understand. Which is why it’s best left to an expert. They can advise you what database will work for you, such as this oracle database compare, and support you with it along the way. It takes specialist companies who dedicate their time to data management to actually control the database and utilise it. A company can easily use the database to process and understand customer data, for example, which can then allow sales to be manipulated.
Better Social Media Management
Social media management is key to a small business. It’s usually the marketing technique of choice for a startup, and sometimes we see such poor management of it. Social media management should be daily. You should be taking time each hour to interact with customers, post to your social media pages, and gain a following. The world is revolving around social media at the minute, so it’s the perfect place to attract the right attention. It’s not something that’s going to happen in a week or two, it’s something that’s going to happen over the course of many months. Building a following takes knowing algorithms, customer interests, and the best way to make posts look eye catching.
Improve Your Customer Relationships
Customer relationships are hard to maintain. Once you get on a path of creating problems with a few, the bad reviews come flooding in, and your company suffers because of it. So, to improve customer relationships, you need to focus on building rapport beforehand. Customers need to know that you’re interested in something other than a sale. If all you’re talking is numbers and products or services, you’ll fail to build solid relationships. If you learn about their lives and take an interest, they become long term customers. It’s simply what’s needed to build basic human relationships, let alone a customer to business one. Loyal customers are the backbone of a growing business.
Breach Interceramic with payments agreed to Dal-Tile and Mohawk Industries
The plan of Interceramic´s president in Mexico, Víctor Almeida García, to turn the company he directs into a relevant player of that industry but in the United States, falls apart with accusations of default of agreed payments, in a sales process in the one that participated with two North American companies.
The conflict has as its origin that for some years, Internacional de Cerámica S.A.B. from C.V. (Interceramic), belongs to the American firm Dal-Tile International, Inc., which in turn is part of the American giant Mohawk Industries, Inc, both companies with subsidiaries in Mexico.
Almeida García himself said in recent months that the company he runs was at a vulnerable point, since the demand for its products in Mexico has declined considerably in recent years, in addition to maintaining a historical debt in dollars, which makes Your income an unstable situation.
Under that context, Dal-Tile determined to liquidate the Mexican company Recubimientos Interceramic, S.A. de C.V, of which it is a partner, as well as closing the production plant in Mexico, supported by an arbitration process.
Although Interceramic has filed lawsuits and appeals to appeal the decision of the company belonging to Mohawk Industries, the resolutions have not been in its favor in the absence of compliance with payments and evidence, as judicial and federal authorities have granted protections to Dal-Tile to stop the legal process to which the Mexican company clings.
Among other accusations, Interceramic in Mexico has argued that this is a case of corruption, bribe of judges, influence peddling and nepotism, however, it has not presented any evidence confirming its appeals.
In November 2019, Interceramic filed a criminal complaint with the Special Prosecutor’s Office in Combating Corruption, an agency that responds to the Attorney General’s Office, against the Tenth District Judge, Matilde del Carmen González Barbosa and the Magistrates Ignacio Cuenca Zamora and José de Jesús González Ruiz, both officials from Chihuahua, a Mexican state located in the north of the country, who have been pointed out about corruption, influence and bribery traffic, without having proven their participation in the process, whose file number It is FED / FECC / UNAI-CHIH / 0000712/2019.
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