Personal Finance Is Your Responsibility

Personal Finance Is Your Obligation

Taiwan Country Awards 2015
Source: Flickr

Whether you decide to neglect it, you can not deny the fact embedded in this statement: Your personal finance is and always will be your responsibility.

When it concerns finance, many people put an unwise blind eye to the fact that financial resources have to be handled. Personal finance is an ever-growing popular term for adults and teens alike, no matter whether you are earning the money or not. After-all bills have to be paid, family members have to be fed and your lifestyle has to be preserved.

The greatest and most ignored step for many families is teaching their teens ways to manage their cash. Adolescent finance is about educating teens on the value of money. Teach them how to save by revealing them the best ways to utilize their primitive type of book-keeping. This can frequently be integrated through the child’s upbringing through
piggy-banks, cost savings accounts, and little chores in exchange for cash.

Adolescent finance is a vital part of your personal finance due to the fact that, too. When your youngsters discover how to conserve and use money wisely, you are consequently saved from bailing them from financial problems in the future.

Individual Principles and finance go together; if you have an excellent relationship with yourself, you will certainly have the ability to conserve cash. You won’t feel the urge to do things that go against your principles like sign-up for a charge card making use of somebody else’s name.

Personal finance includes taking a couple of steps toward safe-guarding your cash. Your cash spent ought to not exceed your cash got. In order to prevent this from happening, you should make a crude balance sheet and utilize it to tape-record all your transactions.

Monthly jot down just how much was received and just how much was spent. Make a list of all things the cash was spent on, so you can keep an eye on your money.

You will be impressed at just how much we invest in things that are not needs.

Make a list and stick to it. Always try to get the very best offer for your money and remember that much cheaper does not necessarily imply lower quality.

After-all it is your cash; handling your personal financial resources should be viewed as an obligatory part of generating income work for you.


Debt products in England, Wales and Northern Ireland

British flag...British flag --- Image by   Jim Barber/Corbis

British flag…British flag — Image by Jim Barber/Corbis

To improve the financial conditions of people, the Government introduced debt help plans allowing you to solve your debt problems and live a stress free life. You can feel assured about these government schemes as they are safe, legal and supportive. Many people apply for these schemes as it offers you to get rid of increasing financial burden. Life becomes tough with burden on your shoulders and creditors waiting outside your house for payments. You lose peace of mind, happiness, and your confidence feels shattered being unable to pay your debts and take care of your family. Losing hope is not a good solution. You have to rise and look forward positively towards debt arrangement schemes that take you out from the well of debt.

If you are a resident of England or Wales or Northern Ireland, you can seek for various debt alternatives. Individual Voluntary Agreement also known as IVAs are covered under Insolvency Act, 1986. IVA schemes are government supported schemes as an alternative to bankruptcy. There are several other debt solutions such as debt management plan, debt relief order, administration order, bankruptcy, Debt arrangement schemes (DAS), trust deed and bankruptcy.

Let’s see what debt management plans are and how they give you an option to be relieved from debt.

Administration order- It is a secured debt solution where you can contribute to the court as much as you can afford. Thereafter, the court on your behalf distributes to your creditors. Firstly, you need to check your eligibility for this relief. You can be eligible for the administration order if your unsecured debt amounts to less than 5,000 pounds. One order of the court should be against you to be eligible for the administration order. As soon as the administration order is enforced, the charges and interest on the debt stops accumulating and are frozen. If your situation is really bad where you are unable to repay the full debt in a reasonable time period, the court has to decide a date after which the residual debt would be written off. It is an effective solution by which you can avoid bankruptcy and live life freely after repaying the debt by making monthly affordable payments.

Debt relief order- Debt relief order is for people who have quite a low income and low value assets. It is very similar to bankruptcy where you do not have to pay any contribution to the creditors. To qualify for such a solution, there are certain eligibility parameters. The parameters are-

  • You do not own a home
  • You own unsecured debt amounting to less than 15,000 pounds
  • If you have a car, it must be less than 1,000 pounds
  • Other assets except car and home should be less than 300 pounds
  • After settling all essential outstanding payments and bills, your disposable income must be less than 50 pounds.

If you qualify with these parameters, you can apply for DRO. Under DRO, the increasing interests and charges are frozen. Your financial condition is monitored for a year where it is assessed that if your condition has not improved still, your financial debt would be written off. You are entitled to pay fees of 90 pounds to the Insolvency Service.

Bankruptcy- Bankruptcy is considered to be a last resort. When a debtor is not left with any debt solution, bankruptcy is chosen as the last option. For being eligible, your unsecured debts have to be more than your assets. As easy as it sounds, it is not really that easy. It is highly recommended avoiding such a situation where you are declared bankrupt. It indicates a fresh start for a person as soon as the unsecured debt is written off. Your assets may be utilized to repay your debts, but that entirely depends upon the situation. After a year’s time, your financial circumstances are assessed and finally your debts are written off. You can file a self petition for Bankruptcy as it is a government backed scheme under Part IX of Insolvency Act 1986. It is obvious that you have to face high levels of stress during this phase but you have to control yourself and stay positive.

Why do we fear from the word Bankruptcy? It is because it has some major drawbacks that frighten us.

Close bank accounts- There may be situations where you are supposed to close your bank account or society account. Your option to open an account in future also becomes doubtful because of the stringent norms of the banks.

Credit rating drops- Even if your bankruptcy period comes to an end, credit rating agencies maintain the information about your bankruptcy with them.

Employment problems- You have to check the terms and conditions of your job as it changes for a bankrupt person.

No credit- you will not get credit anymore when you have been declared bankrupt. As your credit worthiness has been adversely affected, it would be difficult for you to get credit from any institution.

Under an IVA, your credit rating is not damaged to an extent of bankruptcy. It is easier to live life under an IVA that allows repaying your debt slowly. There is respect and motivation in IVA which we cannot get from bankruptcy.  The major benefit of IVA over bankruptcy is that your professional status remains unaffected. Your job is secured even if IVA is in process along with your job. It provides you a sense of security, happiness, and flexibility to pay and protect your assets from the creditors.  IVA does not blacklist you from applying and seeking credit in the future. IVA is enforceable by law and protects the esteem of the debtor. As a debtor, the warning letters and calls take you to a higher level of frustration and dejection. Hence, IVA provides you a chance again to improve your credit ratings, secure further credit and live life respectfully. It helps you to dream for a day after five years when you would be debt free. Need more info? – What is an IVA?


10 Best Loans to Get in Britain

Screen Shot 2015-06-12 at 00.49.18You could avail different kinds of loans to fulfill a variety of your needs. Sometimes, you might get a bad credit score, yet, there are loans available against a bad credit score. You can avail at least ten best kinds of loans not just from banks, but also from private financial institutions. Find below the details of different kind of loans that you can avail to fulfil your requirements.

Unsecured Loans: These are loans that do not need a lot of paper work or collateral. This is a kind of personal loan. When you are in dire need of money and have nothing to show as security or collateral, then an unsecured loan is the best option to go for. All you will need to submit is your salary slip, residence proof, and tax certificates to get this loan. You will have a moderate percent of interest against the amount of loan you avail. Most of the banks do not provide this kind of loan. You will have to approach many private financial firms that provide unsecured loans. The terms and conditions of these firms might vary from that of a bank.

1 year Bad Credit Loan: If you have a very bad credit score, because you have been a defaulter when it comes to repayment, and it would reflect on your credit score, bank might not give you a loan. Before you approach any bank for yet another loan, the bank will first look into your credit score. If it is bad, then there are many financial firms that provide you loans against a bad credit score. The amount of loan that you will secure against a bad credit score will be less.

Bridging Loan: This is a short term loan that you will need to, say, pay for your debts, or the immediate amount of money that you will need when you are buying a property. This kind of loan bridge the gap of the money that is needed immediately. Many bridging lenders are available when you are dealing with finances while buying, developing, or modifying a property.

Secure Loans: You will get a secure loan within twenty four hours of time against any kind of collateral. You can get a secured loan anywhere between seven thousand pounds to fifteen thousand pounds. This is different for each bank and finance lending firm.

Car Loan: If you want to buy a car, then you can get this loan from any bank to buy the car of your dreams. There are many auto financiers who will provide this apart from the standardised banks. You just have to fill the form, and you will get all information about the paperwork you need to submit. You have flexible options of repayment.

Business Loans: Start your business and fulfil the dreams of entrepreneurship as many banks in UK will provide you a business loan up to twenty five thousand pounds. You can choose the repayment option of one year to ten years.

Education Loan: You can avail a student loan or an education loan when you want to apply for a University. When you submit the offer letter from the university, along with the other documents, you can then, get an education loan with option of repayment after you finish your education.

Consolidated Loans: If you have credit and debit loans that are piling up, then consolidated loans are the best loans you can take to pay off all your debts at once. This decreases the rate of interest of repayment of over all loans that you have taken.

Logbook loan Company: If you need a loan immediately, then you can find many lenders who will keep your vehicle or car and lend you money immediately. As long as you don’t pay the lump sum amount, the lender holds your vehicle.

Payday Loans: If you are living pay check to pay-check, and for whatever reason, you don’t receive your one months’ salary, then you can immediately apply for payday loans and bridge the gap of that amount.