My Personal Finance Blog

Very few people have been left untouched by the financial upheavals of recent years. In the good times we tend to spend and not think about it too much. The social pressures to look as though you are “succeeding” are such that when the crunch comes, we find what were manageable debts have now become unmanageable.

People find themselves in a financial situation they never thought that they would be in – one that happens to other people, but never to them. That situation is called bankruptcy.

Bankruptcy no longer carries the social stigma it once did. It is often considered the mark of someone who had the guts to try and go it alone, but failed, through little of their own, (after all, it’s the banks we now all love to blame!)

However, this doesn’t make the actual process any less stressful, and in 2005 the government brought in the Bankruptcy Abuse Prevention and Consumer Protection Act, which made it even more stressful to claim bankruptcy.

One of the main purposes of the Act was to make sure individuals weren’t using the bankruptcy laws simply to avoid debt. By hiding their true earnings and assets, it had been possible for people to claim chapter 7 bankruptcy, where all assets are liquidated but the debtor emerges free of debt, to rid themselves of unwanted debt, and at the same time retain a comfortable standard of living afterward, and with a head start in improving their credit rating after discharge.

Now, anyone wanting to file for bankruptcy has to attend government approved credit counselling.

Anyone attending counselling must bring with them details of their income and assets, and their financial outgoings. They must also supply details of their creditors and amounts owed. This way the court can decide if the more popular chapter 7 bankruptcy is an option, or if in fact the debtor, albeit with a rearrangement of their debts under a chapter 13 bankruptcy, can afford to repay their debts over a period of time, usually 3-5 years. In this way the debtor does not escape the bulk of debt, and creditors get their money.

It will also determine if there are perhaps other ways the debtor could avoid bankruptcy altogether.

One way is by using debt settlement companies, who charge a fee to the debtor, but take over the debt, usually at a reduced amount which they negotiate on your behalf.

The advantage with these companies is that your credit record is nowhere near as badly affected as it is should you become a bankrupt.

However, care must be taken when using one of these companies as many have turned out to be scams, taking the debtor’s cash, but not dealing with the debt itself, leaving the debtor worse off.

As with all things in life, it is research that pays dividends.

The time for creating financial freedom for 2011 is upon us, so if you have been down and out concerning your current financial situation, there has never been a better time to make positive strides with your finances than right now with the upcoming new year. Traditionally, a new year typically gives people a new outlook and serves as a milestone to make that list of changes that they would like to see for themselves. So as you search for ways to create financial freedom for 2011, I would like to encourage you to consider a career as an affiliate marketer with Global Domains International.

It does not matter what your background is, your current job title, or your level of education is for you to be successful with Global Domains International. If you can grasp the concept of aligning a consumer with a product, you can become wildly successful as a Global Domains International affiliate. There are some techniques and guidelines that you should follow in order to market the opportunity, such as understanding your audience, and being consistent with your marketing efforts, but you definitely should not think that you are not capable of being successful and creating financial freedom for 2011. Give it a try, and you’ll soon be in the money.

If you have never heard of affiliate marketing, or Global Domains International; that’s okay too. An affiliate marketer has the job of directing a consumer to a product, in which the case of Global Domains international the product is domain names and web hosting. It is the job of the company, GDI, to do all of the selling, and to be successful in doing so. Once you have got the consumer to the company via your affiliate link, and that consumer makes a purchase, you receive a commission! Making $700 daily is more than possible, and some affiliates are making $1000+ a day like clock work. If you don’t think that this is the kind of income that will create financial freedom for 2011 for you and your family, think again.

I would like to express to you how simple it is to make consistent sales with Global Domains International. Understanding your audience is vital to your success, so let’s discuss who the ideal audience to promote your opportunity to:

college students
unemployed persons
disabled individuals ( who can operate a computer)
internet marketers
entrepreneurial types
stay at home moms
individuals looking to supplement or replace your income
retired individuals

And this is only a small segment of the population that you could promote Global Domains International to. Everybody could use more money, even if they don’t need more money. And if you can tie in a relevant promotion of GDI to any of the above mentioned audiences, or some of the ones that you may come up with on your own, you will be well on your way to creating financial freedom for 2011, especially if you can help someone else create financial freedom for 2011 themselves through Global Domains International. I mean, who wouldn’t want $10,000+ a month?

Claim your 5 figure monthly income, and create financial freedom for 2011 with Global Domains international. If I can assist you in any way in your quest to create financial freedom for 2011, please let me know. Good luck to you and all of your financial endeavors!

With Christmas behind us, 2011 looks as though it could be a tough year money wise. January is therefore the perfect time to review your finances and start a plan to keep out of debt.

Christmas is traditionally the time for overspending and indulgence, but with January already upon us, credit card bills will soon start appearing on the doormat.

And with 2011 predicted to be a difficult year for family finances with increasing costs of living and many incomes reducing in the wake of the government cuts, now is the ideal time to review your finances and make sure that you avoid debt problems.

Understand your current financial position

For many people, reviewing their finances can be a daunting task. But giving yourself a financial makeover does not have to be difficult. There are some easy steps to follow:

The first thing to do is understand exactly what your financial situation is.

This sounds like common sense, however, I am constantly amazed at how many people go from month to month with very little idea of how much money they have coming in and the living costs they have to pay for.

If you do not do this already, you should identify your monthly income and essential expenditure budgets by listing all of your monthly income and living expenses. The Beat My Debt expenditure guide will be a great help with this.

By deducting your essential expenditure from your income, you will be able to see how much you have left over – your disposable income – either to save or pay any unsecured debts.

No outstanding debt – plan to save

List separately any unsecured debts that you have outstanding and which need to be paid.

If you have no outstanding unsecured debts you are in an enviable position. If you are not already, you should then take the opportunity to start saving so that you have money available if and when you face financial challenges down the line.

If you do not find saving easy, then the best way to achieve it is to plan to save.

By this I mean you should first decide how much of your disposable income you want to save each month. Then arrange to save this amount at the beginning of the month.

I recommend saving your budgeted amount as soon as your money comes in as if you wait until the end of the month, all too often the money you had planned to save will already be spent.

Affordable outstanding debt – get a savings safety net

If you have sufficient disposable income every month to maintain any monthly debt repayments, the standard advice is then to try to pay off more to reduce your debts as fast as possible.

However, if you have any spare cash, unlike many other financial advisors my advice is to first save this money to build up a savings safety net.

Set a target safety net amount. This could be £500 or even £1000.

This safety net can then be used if you face any financial difficulties such as an unexpected car repaid bill or your washing machine or fridge freezer breaks down without having to increase the balance on a credit card.

Once you reach your savings safety net target amount, then is the time to direct your spare cash to paying off additional amounts of your debt so that the debts are paid off more quickly.

Outstanding debt which you cannot afford to pay

If having reviewed your income and expenditure, you find that you do not have enough money each month to maintain your required debt payments, you need to take action or risk getting into a significant debt problem.

Not having enough money to pay everything each month means that you must be maintaining your expenditures by increasing your borrowing. Perhaps your overdraft or a credit card balance is slowly increasing.

If you allow this situation to continue for too long, eventually you will get to a point where you are at the limit of your credit facilities and face not being able to make your payments.

It is best to take action before getting to this point by using a debt management solution such as a debt management plan (DMP) or individual voluntary arrangement (IVA) which will help reduce your debt payments to an affordable amount.

Take action

Whatever your financial situation, January is the ideal month to review your financial circumstances.

If you feel you are struggling financially, taking the opportunity to carry out a financial makeover is now more important than ever with the financial difficulties set to face everyone in 2011.

If you follow the simple steps outlined above, you will be far better equipped to deal with the New Year.

You will ensure that you either keep out of debt or start a plan to get back in control of debts which you already have.

Putting the wheel of retiring in motion is not an easy task but with better planning, all are possible. When still on your job, plan well and make sure that none of the details has been left out so that you will not regret it once you retire.

Most of us are troubled by the fact that if we are going to maintain our positions and ways of living once we retire. The really fact is that of course it will be challenging to live without the assured salaries we had before.

You should start checking your insurance coverage soon or later so that you may know exactly your financial situation so that you may start a back up plan. This will ensure you that at least you have something before your Medicaid benefits enters.

Start establishing budgets which you and your partner are satisfied that it will be able to maintain both of you no matter what kind of omen shall strike. Since we never know what magnitude emergencies can come, but is better if at least you have an idea that such thing happens.

As couples, try to think and plans for things which you will be doing together and those that you may do them individually. Despite the fact that your are a partner, each one of you have different and independent needs and all these has to be planed for.

Make sure that you have funds set aside to make it possible to pursue for carriers after retirements which are in your interest as partner and as individual.

Another factor of retiring well is to get rid of all the credits you took while still working. Make sure you retire debts free.

Try making sure that your home is paid for and your status to taxes is all clear before you retire. Never jeopardize with your retirements peace.

During these times that we are living in; I believe that household families should team up together and come up with a game plan. A plan action that will help the family but also give the family the option to become financially prosperous. One of the things my husband and I did was gather the kids to explain our financial situation and our plans together as a family. We told them that everyone in the household must stick together and not give up on one another. Due to the fact that we already have a spiritual foundation, we believe coming together and praying as a family will change things in life. Above everything else this is priority in our lives as a family because we understand the benefit of it all.

We explain to the kids that we will come up with creative ways to bring more income into the house, and many streams of income that will put us in a better financial position. It is important for us to be very conscious and wise on how we spend our money; so we decided to cut back on buying foods that was not good for the body such as sweets and junk food. My husband and I sat down at the table and wrote down everything and everyone that we were in debt to. We list the smallest to the greatest of the debt we accumulated including bills that were past due. As we paid the smaller ones off, the list got shorter and shorter. There is something powerful happens when you write things down and take the action. You must take action by doing something to see the bills and debts eliminated.

Another things that is very important in our family is giving, it is a powerful way to open yourself up to receive; you should always find an opportunity to be a giver in your time and money. Our children understand the importance of being appreciative of what they have in their home. Teach your children to be givers and not be selfish, it will help them in a long run. Here is the following list of thing:

1. Pray together.
2. Explain the changes.
3. Cut back on junk foods.
4. Be very conscious of your spending habits.
5. Write down everything owed and a plan of action.
6. Take action and do something positive.
7. Give to charity your time and money.