Connect with us

Business

Top 6 debt management strategies you cannot miss

Published

on

Debt management strategies

Source: Friends of the Earth International

Debt is all right when it fulfills your immediate needs and you have enough resources to pay it back without sweat but if it increases beyond a limit, your financial position crumbles into dust and you can easily go bankrupt as the situation spirals out of your control. Nevertheless, the thing is, debt can be controlled if we have certain financial knowledge and a commitment to get debt free and to control our spending.

The Requirements for Controlling Debt

An individual must possess many qualities if he has to control his debt and payback in an efficient and steady manner. The most needed such quality is self-control. A person in debt must cut back his spending so that he does not incur more debt and can slowly pay back his older debts. In addition, it takes self-control to steadily payoff the debt and interest out of one’s small salary and one has to undergo a lifestyle change at times to pay the money back. The second quality that is needed is a deep commitment to a payback plan. Many offers from various agencies can confuse a person. However, many of these agencies are not working to help their clients, instead they just make money for themselves and client is left to suffer on his own. It is always advisable to get some knowledge regarding various companies and products offered in the market.

Debt Management Strategies

There are many approaches one can follow to manage his debt.  Some of these strategies are listed below:

1. Individual Voluntary Agreement (IVA) – An IVA is a legal agreement between the debtor and the creditors. An agreement is reached on the amount of the debt, which the debtor can pay off in a certain period, by living within reasonable livelihood expenses. It usually lasts for a period of five years and after that amount of time, the remaining debt is written off. It is a formal alternative to avoid bankruptcy. More info www.iva.com

It has many benefits like those that the debt owned is significantly reduced; the individual is also motivated to payback the debt. There is also no hassling of the debtor at the hands of the creditors as the term of agreement is fixed and the creditors cannot force a change in its terms. A financial expert is selected as Insolvency Practitioner who then manages the whole process.

 There are some nominal fees involved in the entire process. The debtor also has a greater hold over his home than in bankruptcy. It is difficult to obtain credit during the period of IVA but an individual can still obtain credit if necessary.

2. Debt Restructuring – Debt restructuring (also known as debt consolidation) is a widely used technique to manage debt. In this technique, many small and distributed debts are exchanged with a larger debt with a lower interest rate. This technique will provide one, the benefit of paying off a single debt with lower payments and lower interests. In addition, the hassle to pay different debts at the same time is greatly reduced.

However, this technique has a catch. One must carefully calculate the interest, which will be paid on this larger debt. This new and larger debt will last for a longer period and thus it is possible that one will end up paying much more. Also as the payments last for a longer period, the satisfaction to see the debt disappearing is not there.

3. Debt Snowball Method – In Debt Snowball method, the smallest debt is paid off first, often starting with credit cards. A small fixed payment is distributed among all debts equally but extra payment is applied towards the smallest debt. As the smallest debt is cleared its share of fixed payment and extra payment is applied towards the next smaller debt until it is cleared too.

This strategy offers the satisfaction of watching your debts reducing in numbers quickly, but the inherent problem of this strategy is that debt with higher interest rates may linger on which in turn puts you in more debt.

4. Debt Management Plan– It is an agreement between a creditor and debtor, which is individually tailored. It specifies how the debtor will pay back his debt. In it the payment frequency, the interest rate is adjusted and an affordable amount is agreed upon as the payback. This helps in a person getting control of his finances especially unsecured debts. To follow this strategy a thorough analysis of an individual’s net worth and monthly expenditure is done.

5. Debt Recycling – In this strategy, the unsecured and inefficient debt is replaced with efficient debt. An inefficient debt is the debt for which we do not get tax deductions while for efficient debt we qualify for tax deductions. In a way, it helps a person as the amount saved on tax, can be utilized for debt repayment. However, there are charges for converting inefficient debt to efficient debt as it is difficult to do on your own and financial expert’s help is usually required.

6. Bankruptcy – A person can declare himself bankrupt in case he is no longer able to payback his debts. In that case, the creditors can get control of his assets and can sell them off to secure their repayment. Bankruptcy stays in the individual’s financial record for a minimum of six years, making it very difficult to obtain credit.

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.

Continue Reading
Comments

Business

6 Tips for the Ideal Desk Set Up to Unlock Your Potential

Published

on

desk setup

Today’s ideal desk setup is a little different from the one that professionals a few years ago were used to. It is still possible to see office desks with huge amounts of tangled cables on and around it. These are often the ones that have been converted into more modern solutions, but they were not initially ready to welcome the number of devices and tech items we need to make our job more fruitful. 

Make Space for Your Phone, Laptop, and Tablet

Ensure that there is space on your desk for a laptop, keyboard, phone, and tablet. Even if we all try to stay off technological devices as much as possible, we rely on them for several activities. 

Positioning them so they are easily reachable and in order could be essential to speed up most processes. 

Using stands and holders can also help you keep all of your incoming notifications under control without interrupting your workflow to check your phone. This is an essential part of the best desk setups in modern offices.

Keep the Cables in Order

Keeping the cables in order on your desk is one of the biggest challenges for most office professionals. However, since you will always be using the same plugs and tables, you could opt to implement easy-to-use clips and cable ties to keep all the cords in place and out of your way.

Don’t Be Ashamed to Stick to the Good Old Pen & Paper.

While most of your tasks will be completed thanks to computer software, there is nothing better than a simple pen and paper to note down important information or to-do lists. Having post-it notes around you can help you be more efficient and less forgetful. 

For a complete kit, you could use recycled paper and a vintage, old-school pen that can enhance your desk’s look. No matter what innovation you introduce in your company to get out of your startup shell, a pen and paper will always be there!

Opt for a Versatile Standing Desk

Using a standing desk has been seen as beneficial under many viewpoints. Indeed, this habit can help you find a more in-depth focus, more motivation, and cut our distractions. All this while limiting the strain on your back and neck.

At the same time, standing for long hours can be not as beneficial for your legs, especially if you suffer from knee problems. In this case, finding a versatile solution that allows you to sit when you need it and stand when you need to be more productive can be optimal. 

Clean and Sanitize the Area Often

While offices have started to reopen, the risk of contagion has not significantly decreased. Therefore, limiting the number of items and decorations on your desk can help you keep your area clean and tidy. Of course, this can also make the process of sanitizing surfaces much more straightforward. 

Have a Plant Nearby!

Having a plant in a room can be extremely beneficial. Adding one on your desk has been seen as capable of encouraging creativity, lowering stress levels, improving air quality, and stabilizing mood. All this while making your workplace more stylish and attractive.

Prev postNext post
Use your ← → (arrow) keys to browse

Continue Reading

Business

Six Tips For New eCommerce Businesses

Published

on

start a Business

eCommerce is a constantly evolving sector, and as a new business, it can feel overwhelming. In this post, we’ll take a look at six of the hottest eCommerce tips to help you get your new eCommerce business up and running. 

Your website is your first impression. 

As a new eCommerce site, customers will have very little knowledge of your brand, and so you have just a fraction of a second to make a good impression. A website that is slow to load, poorly designed, and difficult to use will not build trust and confidence and will lose you sales. Take the time to make sure that you create the best website that you can for your budget and conduct the necessary UX testing to ensure that it is functional. 

Make sure that you’re mobile-friendly.  

The average person spends more than 100 minutes on their mobile phone every day, and so it is essential that your eCommerce site is fully functional on mobile and tablet devices as well as on laptops and desktops. With more and more people now using their phones as personal computers, shopping is becoming increasingly mobile, so having a mobile-friendly site is key. 

Invest in quality stock 

It should go without saying, but quality must always be put above quantity when purchasing or making items to sell in your store. There are a number of different wholesale sites out there, such as Alibaba, Oberlo, and Doba, and they can be a minefield to navigate. Learn how to buy from alibaba.com here. 

Social media will be your best friend.

It is virtually impossible to launch a thriving eCommerce business without a social media presence. Social media gives you a glimpse into the wants and needs of your potential customers and target audiences, but it is also an invaluable free and paid marketing tool. In particular, Instagram is now known as the number one social media platform for eCommerce sites, but for maximum reach, don’t forget to build a presence on other social media networks such as Facebook, Twitter, and TikTok too.

Invest in your images 

Pictures tell a thousand words, and when it comes to eCommerce, they are also processed by your customers much faster. With 60% of people being visual learners, images are invaluable to your business, so do invest in a good photographer and take some professional pictures to ensure that your customers have all the pictures they need to make their decision. 

Use a live-chat

Lastly, as a small eCommerce business, you likely do not have a customer service department, but that doesn’t mean that you can neglect customer interactions. A live-chat feature makes it easy for you to answer customer questions and to speak with customers while they are on your site, just as if they were shopping in a real store. 21% of people who shop online say that live-chat tempts them to buy, 46% of people think that live-chat is the perfect digital communications tool, and 62% of shoppers say that they are more likely to return to a site that has live-chat installed. 

So there you have it – six tips for new eCommerce businesses, did you find them helpful? Why not share your own suggestions in the comments.

Use your ← → (arrow) keys to browse

Continue Reading

Business

3 Tips For An Easy House Move

Published

on

Moving home is so exciting, right? A fresh start, a lovely new place, a new neighbourhood to explore. You feel like a little kid again – those night-before-the-move jitters and arranging all your furniture into a great new space is an unbeatable feeling. However, as we all know, moving can also be expensive and stressful. Especially with lots of furniture, children, pets and a limited amount of time, the task can feel insurmountable. Here are three tips for an easy house move.

1. Hiring Your Own Lorry

Removal companies are great if you have all your own furniture, and no way of transporting it. However if you have a partially furnished let, wherein you’ll have some,but not all of your furnishings already set up in the new property, you could hire your own truck. This will save a lot of money and will ease your move. You can hire the lorry for as long as you need it, and you can have a fun road trip all of your own!

Ensure that when you hire or buy your own lorry, you look into lorry insurance and invest in proper precautions. 

2. Asking For Help With Child And Pet Care

If you are moving with young children, dogs or cats, the move can become infinitely more complicated and difficult. If you have close friends or family who can take care of your children or pets for you, this would help your move immensely. Having to take care of small children whilst lifting heavy boxes and organising a million things at once can be a big challenge, and can even lead to accidents. Children can be overwhelmed by moving house, so it is much better to have them come to your new home when you have had a chance to organise the space and make it feel like home.

Similarly, dogs and cats can become stressed by a change in location. If the place is in disarray, the animals can become even more frightened and restless. It is better to have a friend, family or professional pet care company take care of them whilst your house move is taking place.

3. Time Off Work

Although it can feel wasteful to take holiday from work just to move house, you’ll thank yourself later for taking the time. Moving into a new house might only take one day, but the unpacking, organising and cleaning process can take far longer. If you take a few days, or even a week, to complete your move, you can return to work with a fresh slate, knowing you’ll be coming back to an organised, calm home!

Plus, this way you can actually enjoy your move, rather than treating it as a stressful nightmare! You can make the most of the new space, experiment with the layout, and truly transform this house into a home which you will be enjoying for years to come.

Use your ← → (arrow) keys to browse

Continue Reading

Trending