In our world of dizzying change, nothing is more true than the time honored statement that circumstances always change.
No where is this more true than with financial issues.
Have you ever borrowed money, or charged up the VISA card at Christmas, all the while telling yourself that you would pay everything off with a coming tax refund or bonus?
Sound familiar. And then what happens when the bonus money arrives?
Let me guess….circumstances changed, the car needed brakes (or the kids needed braces, etc), and the VISA debt and interest charges keeps piling up.
Unless you have a plan, you will always be caught in the unpredictable grip of “changing circumstances.”
This is a slippery slope that can very quickly can become serious financial stress. Consider the fact that Americans are declaring bankruptcy at record rates. One in every 100 families is affected by a bankruptcy.
I was on this slope 10 years ago. Declaring personal bankruptcy and filing for divorce went hand in hand.
One of the most insiteful moments of the process was preparing a written log for the trustee of all of our spending for the 5 years leading up to bankruptcy.
While all of the individual decisions made sense in the moments that they were made, they looked totally foolish in the context of the “bigger picture”
In other words, constantly changing circumstances drove us off our financial roadmap.
Consider this five step plan for getting on, and staying with, your financial roadmap.
Step No. 1: Make a list of what you owe & prioritize: Put all your bills in a pile. Then list your debts in order, starting with the largest balance first. Then prioritize your repayments (ie paying down the highest interest rate first).
Step No. 2: Eliminate credit cards and don’t roll over balances. Once paid off, notify the company that you want to close the account.
Step No. 3: Make a spending plan. Change your free-spending ways. Track the money that’s coming in and going out. Use a debit card instead of your credit card. Download your bank transactions into a computer program for easy categorizing.
Step No. 4: Be careful about the equity in your home. Billions of dollars worth of equity has been withdrawn from millions of homes in the last few years. But many people pay down credit cards only to charge them up again – and then you don’t have the safety net of the equity in your home.
Step No. 5: Get help. For some people, the problem of overspending is a psychological one. Spending can become a habit that’s as difficult to kick as alcohol, drugs or gambling. Sometimes, its due to circumstances they truly could not avoid: medical bills or divorce or loss of a job.
You can talk with a credit counselor on a private basis. It only appears on your credit report if you enter their debt repayment program.
During this holiday season, as you consider your finances, remember that Americans are now carrying $683 billion in revolving credit card debt. 47% of the people who paid less than the full amount on their credit card bills in a recent month, made only the minimum payment due.
The good news is that planning and professional help will definitely help you turn things around.
Case in point: I went from bankrupt with zero assets living in a boarding house, to gainfully employed, running my own homebased business, with 2 houses and excellent re-established credit.
In other words, it can be done.
About the Author
Pay-off-debt-now.com is run by Drew Harris and is a one-stop-shop web portal for those facing crushing debt issues. Multiple pages of resources, referrals and tools. Expert advice on credit cards, loans and avoiding bankruptcy. http://tinyurl.com/4bbum
Written by: Drew Harris
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Monday, May 25, 2009
Wednesday, April 29, 2009
Invoice Factoring: Hot To Finance Growth without Debt or Banks
There are few bigger challenges for business owners and managers than waiting 30 to 60 days to get paid by their customers. Although large businesses can usually afford it, smaller businesses can't afford the wait. As a matter of fact, waiting to get paid on their invoices can create cash flow problems that affect the owners ability to meet payroll or pay the company's bills. This problem can be more frustrating if the business has a number of orders that it cannot fulfill because its cash is tied up in unpaid invoices.
How can invoice factoring help you?
Invoice Factoring, also known as accounts receivable factoring, is a financial tool that allows small business owners to capitalize on the power of their slow paying invoices. It allows you to turn your invoices into immediate cash, enabling you to fund your business operations. Although it is not a well-known fact, invoices from strong credit worthy commercial clients are excellent collateral, especially for factoring companies. Although most banks won't take invoices - factoring companies are more than willing to provide you with financing based on them. This makes it an ideal financing vehicle for small and mid size businesses, as well as knowledge-based companies and employee intensive firms.
How does invoice factoring work?
As opposed to most banks that lend you money against hard collateral, invoice factoring companies buy your invoices outright. The factoring company buys your invoices and provides you with funds immediately, while they wait to get paid by your customers. Factoring is best described with an example:
1. Let's say that you sell services to Company A and Company B. As soon as you provide the services, you invoice them.
2. At the same time, you send copies of the invoices to the factoring company, who buys them and provides you with an advance payment for them.
3. The factoring company waits to get paid by your customers. Once paid, any remaining funds are remitted to your company.
The invoice factoring process can be repeated every time you invoice, providing you with a flexible line of financing that grows with your business.
How much will an invoice factor advance my business?
Factoring transactions are commonly done as a two-installment sale. The first installment is called the advance and is paid to you as soon as you submit the invoices. Advances can range anywhere from 60% on the low end up to 90% of the gross value of the invoices. The average advance is about 75%.
The remaining installment, called the rebate, is remitted to you once the invoice is paid. Factoring fees are deducted from the rebate.
The cost of invoice factoring
The cost of a factoring transaction is determined by three criteria. First, the credit worthiness of your customers. Second, the length of time that your invoices take to get paid. Lastly, the monthly factored volume.
Your cost, actually called a discount, can be as low as 1.5% or as high as 12% per transaction depending on how you fit the previous criteria.
How can I determine if invoice factoring will help me?
Generally speaking, invoice factoring will help you if you have a business that has reasonable profit margins or is growing quickly. Mid size companies with 20% or more profit margins or large companies with 15% profit margins can usually do well with accounts receivable factoring.
About the author:
Invoice Factoring Group and its small business invoice factoring subsidiary can provide you with factoring quotes at no cost to you. Marco Terry, its president, can be reached at 866-730-1922.
Written by: Marco Terry
How can invoice factoring help you?
Invoice Factoring, also known as accounts receivable factoring, is a financial tool that allows small business owners to capitalize on the power of their slow paying invoices. It allows you to turn your invoices into immediate cash, enabling you to fund your business operations. Although it is not a well-known fact, invoices from strong credit worthy commercial clients are excellent collateral, especially for factoring companies. Although most banks won't take invoices - factoring companies are more than willing to provide you with financing based on them. This makes it an ideal financing vehicle for small and mid size businesses, as well as knowledge-based companies and employee intensive firms.
How does invoice factoring work?
As opposed to most banks that lend you money against hard collateral, invoice factoring companies buy your invoices outright. The factoring company buys your invoices and provides you with funds immediately, while they wait to get paid by your customers. Factoring is best described with an example:
1. Let's say that you sell services to Company A and Company B. As soon as you provide the services, you invoice them.
2. At the same time, you send copies of the invoices to the factoring company, who buys them and provides you with an advance payment for them.
3. The factoring company waits to get paid by your customers. Once paid, any remaining funds are remitted to your company.
The invoice factoring process can be repeated every time you invoice, providing you with a flexible line of financing that grows with your business.
How much will an invoice factor advance my business?
Factoring transactions are commonly done as a two-installment sale. The first installment is called the advance and is paid to you as soon as you submit the invoices. Advances can range anywhere from 60% on the low end up to 90% of the gross value of the invoices. The average advance is about 75%.
The remaining installment, called the rebate, is remitted to you once the invoice is paid. Factoring fees are deducted from the rebate.
The cost of invoice factoring
The cost of a factoring transaction is determined by three criteria. First, the credit worthiness of your customers. Second, the length of time that your invoices take to get paid. Lastly, the monthly factored volume.
Your cost, actually called a discount, can be as low as 1.5% or as high as 12% per transaction depending on how you fit the previous criteria.
How can I determine if invoice factoring will help me?
Generally speaking, invoice factoring will help you if you have a business that has reasonable profit margins or is growing quickly. Mid size companies with 20% or more profit margins or large companies with 15% profit margins can usually do well with accounts receivable factoring.
About the author:
Invoice Factoring Group and its small business invoice factoring subsidiary can provide you with factoring quotes at no cost to you. Marco Terry, its president, can be reached at 866-730-1922.
Written by: Marco Terry
Saturday, March 7, 2009
Are You Having Sleepless Nite Because of Your Finance?
You've worked hard all day and come home at night, only to discover that you can't get comfortable in your own bed. You toss and you turn for well over three hours. As 3a.m. approaches, you finally go to sleep but the alarm sounds all too quickly at 6 a.m. It's time for you to go to work. Day two comes and you're off again to the usual rat race. You repeat the same pattern once you get home. Later that night you lay in bed, thinking how you're going to pay all of these bills. Despite your best efforts on the job, including overtime, it doesn't seem to be enough. What can you do? Who can you to turn to?
Does this sound like you? Are you a Christian having sleepless nights because of your finances? Here are the top five reasons I have found why people get into debt:
1) Try to live beyond their means. Keep up with the Joneses. 2) Lost job and bills pile up 3) Have never been taught money management 4) Divorcing and the other party charged up cards in the process splitting up 5) Impulse Shopping
I too was a victim. Not from just one, but two of these debt catalysts. My husband equally had financial woes, his was still on this list. Being in debt has a way of having a hold on you and causes you not to think clearly. People in debt tend to operate out of fear - for example they ignore phone calls because it might be a collection agency on the other end. How many calls have they missed? Or perhaps, they write a check in the hopes that it will clear the bank; knowing full well they spent the money on luxuries and other needless excesses that have caused the bank account to have insufficient funds.
If any of this sounds like you or someone you know, assure them they can get out of debt without filing bankruptcy. They have to want help and not let pride or embarrassment get in their way of being helped.
At Journey To Wholeness, we work with people who want help getting their finances in order. There is no charge for our help. Why would you pay someone to help you get out of debt?
About the Author
Dr. Taffy Wagner is the author of Debt Dilemma. Debt Dilemma is her own personal story of how she got into debt and was able to get out without filing bankruptcy. She will be launching a national marketing campaign on October 18, 2005. View her website at http://www.paidoff.net/SpecialPromo.html for further details.
Written by: Taffy Wagner
Does this sound like you? Are you a Christian having sleepless nights because of your finances? Here are the top five reasons I have found why people get into debt:
1) Try to live beyond their means. Keep up with the Joneses. 2) Lost job and bills pile up 3) Have never been taught money management 4) Divorcing and the other party charged up cards in the process splitting up 5) Impulse Shopping
I too was a victim. Not from just one, but two of these debt catalysts. My husband equally had financial woes, his was still on this list. Being in debt has a way of having a hold on you and causes you not to think clearly. People in debt tend to operate out of fear - for example they ignore phone calls because it might be a collection agency on the other end. How many calls have they missed? Or perhaps, they write a check in the hopes that it will clear the bank; knowing full well they spent the money on luxuries and other needless excesses that have caused the bank account to have insufficient funds.
If any of this sounds like you or someone you know, assure them they can get out of debt without filing bankruptcy. They have to want help and not let pride or embarrassment get in their way of being helped.
At Journey To Wholeness, we work with people who want help getting their finances in order. There is no charge for our help. Why would you pay someone to help you get out of debt?
About the Author
Dr. Taffy Wagner is the author of Debt Dilemma. Debt Dilemma is her own personal story of how she got into debt and was able to get out without filing bankruptcy. She will be launching a national marketing campaign on October 18, 2005. View her website at http://www.paidoff.net/SpecialPromo.html for further details.
Written by: Taffy Wagner
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