Options For Your Debt

Do you still stop by the pizza place for your lunch?  Do you still fill up on drive-through coffee every morning to fuel your commute in to work?  Do you still pick up a burger and fries on your way home?

If you have the money to outsource your meals, your snacks and your coffee, then you are probably using it to your best enjoyment. But if your debt is mounting, eating out and even eating take-out is not a very wise move.

And if you start having to scrounge for change to pay for that iced cappuccino, that is a clear sign that you really are down to your last dollar…  and that alone tells us that you could use some help better balancing your budget and managing your debt load.

Ironically, those coffees, snacks and meals you grab during the day are not just luxuries that need to be avoided because of debt; those luxuries are probably part of the reason you are in over your head. Sure, one take-out coffee is not enough to put anybody in debt. But a daily ritual adds up over a few years.

According to Consolidated Credit Counseling, people should not be ashamed to seek help when they need it.  We seek the help of doctors when we are sick. We seek the help of plumbers and electricians when our houses are in need of repair. We should be just as ready to seek the help when our finances are in trouble.

And options do exist:

• Bankruptcy
• Credit counselling
• Debt settlement 

Bankruptcy

Bankruptcy is the most severe option, and the one you might be stuck with if you really went to far and cannot climb back. But it is also the most disruptive. When you declare bankruptcy you really have to start all over again, and it can be long while before you bounce back.

Not surprisingly then, most people do everything they can to avoid bankruptcy. That is why credit counselling and debt settlement companies exist.

Credit Counselling 

Credit counselling is not the same thing as debt settlement. The idea of credit counselling is to find the best path for you to manage your finances and pay off all your debts properly, then budget to keep yourself out of debt in the future. The goal is to avoid bankruptcy, and also to keep your good financial name intact.

Before contacting a credit counselling service, be forewarned – you will have to step outside of your comfort zone. Way outside your comfort zone. You will have to follow a very strict and frugal budget.
In order to come up with the cash to pay down the debt, you will likely have to cut spending deeply. It is by overspending that you most likely got into this mess in the first place. That is your comfort zone and that is what needs to be overturned.

Debt Settlement

Debt settlement companies offer a different service. They offer a bit of a shortcut by getting some of your debts paid off at a lower rate. This can be very tempting, and sometimes even necessary. But it comes with a price. They don’t help you solve the problem that got you into the mess. They don’t help you fix your budgeting.

It is fair to note that debt settlement works with only some debts, and some might still come back to haunt you.

And both credit counselling  and debt settlement companies do charge a fee; even not-for-profit services cost something.

It stands to reason, if you are considering either credit counselling or debt settlement, that you are determined to avoid bankruptcy. If you are determined enough, you can cut your spending and fix your problems. If you are not determined enough, the comfort zone will win. In many ways, this is like dieting, but for your personal finances.

So back to those pizza slices and take-out coffees and drive-through French fries. They are not helping you balance your budget. They are not helping you avert bankruptcy. And in many cases, they are not helping your diet (but that really is another story altogether).

source: financialhighway.com

7 Lifestyle Habits that can Improve Your Finances

Too often, we separate our lifestyle decisions from our financial decisions. However, what we choose to do in terms of day to day living can impact our finances quite a bit. Before you assume that your lifestyle choices have no impact on your finances, consider the following 7 lifestyle habits that can improve your money situation:


1. Eat Better

One of the best things you can do for your health is to eat better. Healthy meals can not only help you feel better about your body, but they can also help you save money. First of all, creating a list and putting together a healthy meal plan can mean that your shopping experience is more cost efficient. Do yourself a favor, and plan to buy more raw ingredients, and then make your food at home. You will have healthier meals, and you’ll spend less on pre-packaged and pre-prepared foods. Plus, being healthier almost always leads to lower costs in the long run.

 2. Exercise at Home

Staying healthy requires some level of physical activity. However, you don’t need to pay for an expensive gym membership, or even expensive equipment at home. There are plenty of frugal ways to get exercise. Your own body’s resistance can provide strength training, and there are any number of cardio activities that you can do without spending money on expensive memberships and equipment. Exercise more to improve your health, and save money while doing it.



3. Get Adequate Sleep

Sleep is one of those things that we often under-rate. However, sleep can be an essential part of good health – and it can help you save money. Those who get adequate sleep are more likely to practice self-control in all aspects of life. A tired person makes poor decisions, and that includes spending decisions. Get a good night’s sleep, and you will make better financial decisions, and you will have more self-control when confronted impulse purchases. On top of that, feeling well-rested can also provide you with increased productivity, helping you make more money, or work more efficiently.


4. Maintain Your Things

Take care of what you have, and you won’t need to make as many purchases to replace items that wear out. Take care of your clothing, and you won’t need to buy new outfits as often. Regularly maintain your car, and it will run more efficiently, as well as last much longer than a few years. If you take good care of your possessions, you will replace them much less frequently, saving money in the process.


5. Keep Learning

Your knowledge is one of your most powerful resources. If you want better finances, keep learning. This doesn’t mean that you have to go back to school, or get an advanced degree. What it it does mean is that you should keep learning. Develop the skills that others want to pay for, so that you are more likely to find a good job, or get a raise. Learn the basics of running a business and make more money with a side gig. Or, you can just make it a point to learn about good financial practices so that you use your income to best effect.


6. Watch Less TV

One of the biggest time wasters out there is television. TV is expensive, too. When you pay for a TV package, you can spend between $50 and more than $150 a month. Just for TV! While we all need to be entertained sometimes, and it can be nice to unwind at the end of the day with a favorite program, you can actually get more done if you watch less TV. Not only can you save money each money by getting rid of the cable/satellite TV package, but you can replace that time watching TV with something else. Use the time to work on a side business, or learn about investing, or to engage in some other activity that will enhance your life and your finances.


7. Create Connections with Others

You never know when the right connection will help you in your career. Treat others with respect, and create meaningful connections, and you never know what might happen. You could find your new boss, or a new business partner. Your co-worker of today could be that great connection tomorrow. Treat others the way you want to be treated, and make the time to build lasting connections, and you could benefit financially — as well as creating fulfilling relationships.

source: financialhighway.com

LNP's Newman to explain private finances

Liberal National Party leader Campbell Newman is expected to explain on national television how he intends to manage his personal finances if he becomes Queensland premier.

With two weeks until the Queensland election, Mr Newman on Saturday told reporters he would be making a 'significant announcement' on Channel 10's Meet the Press on Sunday to address questions about his personal financial dealings and family business interests.

Labor, which will launch its official Queensland election campaign in Brisbane on Sunday, has repeatedly raised concerns about Mr Newman's interactions with developers during his time as Brisbane's lord mayor and his 'increasingly tangled web' of financial interests.

'I have never done anything wrong, neither has my wife, nor my family, but tomorrow you will hear a lot more,' Mr Newman said.

He said a declaration of his personal finances was available online and he had been cleared of any wrongdoing on more than one occasion by Queensland's corruption watchdog.

Mr Newman blamed 'Labor's campaign of smear and innuendo' for two unfavourable poll results this week. The polls showed Labor incumbent Kate Jones would retain the west-Brisbane seat of Ashgrove if an election were held now.

A Galaxy Poll, published on Saturday, had Ms Jones winning on a two-party preferred basis with 51.5 per cent of the vote compared with Mr Newman's 48.5 per cent.

ReachTEL on Tuesday showed Labor leading 50.7 to 49.3 per cent.

While the LNP needs a uniform swing of 4.6 per cent to form government, Mr Newman needs 7.1 per cent to wrest Ashgrove from Ms Jones.

'It was important for me as a leader to go for a seat that was difficult and I always said it was going to be a challenge,' Mr Newman said.

Mr Newman, who has been leading the LNP from outside parliament, ruled out being parachuted into another seat after the March 24 election if the LNP won government but he failed to claim Ashgrove.

'I will return to the private sector and pursue another career,' he said.

Premier Anna Bligh said the polls showed it was 'no longer just a theory' that the state could be without a clear premier if the LNP won government but Mr Newman lost in Ashgrove.

'It's time for the Liberal National Party and Campbell Newman to tell Queenslanders what their alternative plan is,' Ms Bligh told reporters in Brisbane's north.

The LNP has so far refused to reveal its 'leadership plan B', and on Saturday federal Opposition Leader Tony Abbott reiterated the party line.

'I don't believe there will be a change of government in Queensland unless Campbell Newman wins his seat,' he told reporters in Sydney.

Deputy Prime Minister Wayne Swan also weighed in on the debate.

'I know that there are plenty of very bitter entrenched interests within the Liberal Party who will be fighting over that (the leadership) to the bitter end,' he told reporters in Brisbane.

Mr Swan said Labor had put its federal leadership woes behind it, with Prime Minister Julia Gillard and former foreign minister Kevin Rudd both expected to support Ms Bligh at the Queensland campaign launch.

source: http://www.skynews.com.au/topstories/article.aspx?id=727442&vId=

Personal Finances: How You Manage Your Finances

Do you find it difficult to meet all your commitments due to personal finances ? Are monthly bills a problem for you ? If 'yes' is the answer you need to check how you manage your finances. Which of these two categories best describe you : a) A careful manager of funds, keeping your monthly budget in control so that you can deal effectively with any unforeseen money issues, or b) A bad finance manager who tends to spend their monthly income without considering the possibility of getting into debt with monthly payments.

If you answer b ... you can learn to keep your personal finances under control.

You may need financial advice if you have never planned financially before. You need to find out exactly what your monetary situation is, by getting as much information about it as possible. This information will give you an idea of your net worth financially, you should include assets, savings and property - then you will see more clearly what is left over for future savings. A personal finance budget is invaluable, this budget should include all of your income and expenditure. Accuracy is important as this will help you to realize your goals and future plans. All monthly expenses such as credit card payments must be included and scrutinize your statements so that you understand exactly where your money is going. This will aid you in prioritizing your expenses so you can make any tough decisions that may be necessary.

Do you have savings ? many do not bother about this until later in life but thinking about savings sooner is a good way to regulate your personal finances .. but don't forget that you have to meet your monthly requirements first ! Once you can do that, start saving, remember that you can't do it the other way around.
Also, consider your job, do you have a steady job with a reliable income ? This is not always easy to determine, for example if you work in retail there is always the possibility of job loss. Having a steady income may mean getting into a more secure job or, if possible, become your own boss. Above all be concerned with your personal finances these have to take priority over everything else.