Using The Rule Of 72 To Manage Debt Intelligently
“The most powerful force in the universe is compound interest,” said Albert Einstein. It is expressed in a mathematical formula called the Rule of 72.
Some people go as far as saying that Albert Einstein’s greatest discovery was the Rule of 72, not the theory of relativity. Others say that the rule had been in existence even before Einstein was born. But most people agree that Einstein popularized it.
So what is the Rule of 72 ? Why is it considered a basic rule that every-want-to-be-investor should know. The Rule of 72 allows you to determine when money would duple and how many years would it take to do it.
The math is not that hard. You only have to divide 72 by the interest rate and it will equal to how many years it will take for money invested to duple. But the Rule of 72 is not only limited to determining investments but can also be utilized in debt management. Thus the rule can also be equated this way: 72 / interest rate = number of years for your debt to double
As you can see, the Rule of 72 can also be used to find out the number of years your debt will duple. Whether that debt is by credit card, loan or mortgage, the Rule of 72 can be used.
To illustrate my point, let’s use the interest of a credit card. Credit card companies here in the Philippines charge around 3.5% interest per month or about 42% interest per annum. Now divide 72 by the interest rate (42) and you will notice that your credit card debt multiplies by 2 every 21 months. (72 / 42 = 1.7 years or 20/4 months).
Even though the above calculation is not utterly precise as we want it to be ( we have not included in the calculations the deductions while paying up the credit card debt), we can still use to give us a clearer picture of how fast our credit card debt multiplies. Now having this information that your credit card debt will duple every 21 months, I believe it will sway you to immediately solve that credit card debt that you may have.
To learn more about the Rule of 72 visit the blog of Zigfred Diaz where he talks about other topics including debt management.
5 Proven Debt Collection Strategies That Increase Your Business’ Cash Flow
Businesses that are the most successful are the ones that use effective debt collection strategies. This enables them to know that accounts are being paid and delinquent debts are being satisfied. This improves cash flow to the business.
While its a good idea at any time, its especially important during economically tight times to review your debt collection strategies and make sure they really are having the effect you want.
Outside debt collection agencies are experienced professionals and they implement proven strategies that reap effective results from delinquent debtors. Here are some of the tactics they use:
Reminder Letter
Reminder statements to past due customers that are carefully worded are often a very successful debt collection strategy. Some customers may have simply forgotten the past due bill, or they may have misplaced it. It can and does happen to all of us. A simple reminder letter can jog their memories, and many will pay promptly.
Telephone Calls
Calling a delinquent account holder to remind them of their past due bill can be effective as well. Should you make these calls yourself, be aware that some customers care little about your business, or your cash flow. Since they already know they’re delinquent, some customers could become defensive when they get your call. You can certainly do this yourself, just be prepared. However, you should always stay focused on the task at hand: settling the delinquency, ascertaining why the bill remains unpaid, and possibly working out payment arrangements.
Some customers may feel that after they’ve received the goods or services from you, they can be slow in paying you until they deem it financially suitable for them to do so. Debt collection agencies can interrupt this kind of mindset if they make the call for you. The psychological impact of hearing from a neutral third party can make them aware that the situation is far more serious than previously thought.
Demand Letters From Collection Agencies
Of course, there are still those customers who wont respond after a simple reminder of an overdue account. This is where engaging debt collection agencies to issue a firmer demand letter can become a very powerful debt collection strategy.
Most customers fear the possibility of hurting their good credit. Being contacted by an outside collection agency can often prove incentive enough to prompt these debtors to think differently about the outstanding debt and take action to rectify it.
Employing Skip Tracing As A Tool
You may find that some of your delinquent customers may have changed their contact details since the transaction took place. This can make them very difficult to reach.
Third party collection agencies have access to better tools and resources: software, databases and many other tools in their arsenal that enable them to locate your delinquent customers when you can’t find them.
Other Legal Options
If you find youve exhausted all the tactics in your current debt collections strategies, dont feel as though you need to write that debt off just yet. Theres still hope of receiving the cash your business needs. You still have the option of using third party collection agencies that are able to pursue the case legally.
David P. Montana has been a recognized industry expert, business consultant and writer on the subject of collection agencies for three decades. He provides more helpful tips and information on debt collection strategies.
A Few Thoughts About Christian Debt Consolidation
The economy may be in the tank, but one thing there is plenty of in these here United States, is debt. Most of us are in the same sinking financial boat with no oars, and our debt ratio is so totally out of whack that we need help getting ourselves back on dry ground with steady legs underneath us. The best way for the majority of folks who are in severe debt crises, is to consult a debt consolidation service for help; and one of the services that stands out in the crowd because of its name is Christian debt consolidation services.
So, let’s take a little closer look. If you wanted to make a name for yourself in the crowd, and stand out from the rest, what would be a good gimmick to use that would point the crowd in your direction. Yeah, good idea—-let’s use the old religious hook and make the folks who are desperately looking for financial help and credit restructuring think we are the most honest folks in the business. Everyone has the feeling that if you are following Christian tenets in your work, then you would be the tree that they would bark up. That may be very true for some unscrupulous businesses, but there are those who truly live by the Bible’s teachings and the same applies for their work ethics—-so using the moniker of Christian debt consolidation service would certainly apply to their business.
We are surrounded with corruption in our every day lives, from the White House on down through all the levels of government, to the average business man on the street. So what’s to say that a business is on the up and up, just because it claims to be a Christian debt consolidation service. Does that make them more honest? Or is it just a hook to get the average Joe Blow with debt problems to come in the door because he thinks he’ll get a fairer deal than with any of the thousands of other debt services that there are out there.
So how do you make the decision to go with one service and not the other, simply by their advertising. Well, you can’t. Just because the billboard advertises a Christian debt consolidation service, doesn’t mean that service is on the up and up—-it could be a front just to get you in the door because you are thinking the service will be religious based, therefore honest and upright and you can trust them. Be forewarned: that type of duping does go on where the religious aspect is used as a hook to get business, but you have to be super careful in checking things out.
One of the best ways to find out if a business calling themselves a Christian debt consolidation service is truly practicing their beliefs in their business dealings, is to talk with folks who have used their services and get the general opinion by word of mouth. Nothing is more powerful than that; hearing first hand how someone was dealt with by a business you are considering working with. Also, there is the Better Business Bureau that keeps track of the positives and negatives in work dealings for most businesses out there in the working world. The problem with the BBB is that they are only as accurate as the reports they receive from folks who have dealt with the businesses in question, and sometimes the BBB is not correct. I myself have had a couple of negative experiences where I checked out a business with the BBB and it seemed fine, only to get burned badly after dealing with the business—-so from personal experience I would say, don’t use the BBB as an all or nothing source of info.
Your financial soul is the most vulnerable part of you, and baring it to just any old Tom, Dick, or Harry just because they say they are a Christian debt consolidation service may be the biggest mistake you ever make in your life. Beware of any business touting that they are based on religious principles until you have thoroughly checked them out, because many of them are not based on the principles you think they are, and they are playing a game with your psyche just to get your business.
It’s really sad that we have to do all this checking and double checking before we deal with a company, but unfortunately, that’s what this world has come to. People are becoming more and more crass, less honest in their dealings, more amoral, and more self serving than years ago when a handshake was all you needed to seal your word or seal a deal. There are so many folks out there sniffing out a fast buck, and although most Christian debt consolidation services are probably above board in their dealings; it is still a very prudent idea to double check their credentials before doing business with them.
Imus Jackson discusses various topics including Debt Management Plan. For more information on Debt Problems Uk visit our site.
Credit Repair Help – Why Is It Important?
In monetarily confused times having a good credit rating is vital.
In light of increasing numbers of defaulters on loans, credit cards and mortgages the lenders are more tough in their criteria for credit and are using every chance to recover money and multiply profits. Therefore credit repair is now an important tool in the armory of all consumers.
Credit repair isn’t new, but with the increased emphasis on credit scoring, even if you have a seemingly good quality credit history, due to the sheer numbers of people and transactions involved mistakes are often made by credit reference agencies and lenders alike.
In the recent past credit reports were simply a listing of loan and credit card information, together with payment history, today however things are different. Now this data has been distilled into a number called a credit score, and it is this score which will determine whether you are treated to painless monthly payments or loan shark rates.
Don’t lose hope however, even if you do have a reduced credit history it is achievable to repair your credit and help get a improved credit score. This will enable you to get better loan, mortgage and credit card rates. There is no quick fix to repairing inferior credit – it can be a little monotonous but the results can save you many hundreds if not thousands of dollars in the long run.
However – important, you must be conscious that despite what anyone might tell you, correct damaging information cannot legally be removed from your credit history, however also be aware that credit report agencies do make errors which may well affect your score. These mistakes can be repaired, legally with a little spadework.
Credit repair can be quite frightening – poring over a credit report, trying to decode the contents and see where the mistakes lie, writing to the credit reference agencies, to the untrained it looks complex. Relax, in truth the task of repairing your credit report is easy.
Simon Myring has been publishing articles on the internet for over 10 years. His current hobby is helping advise people on how to fix bad credit scores. ensure you visit his latest website focusing in credit repair help and ensure you study his excellent guide on whether credit repair agenciesare worth the money.
What You Should Know About Debt Relief Providers From DebtPro 123
DebtPro 123 is a wholesale Debt Relief Provider. Through its traffic with brokers, loan companies, bankruptcy attorneys, law firms, real estate agents, tax professionals, financial planners who are looking to offer this unparalleled program to their past, present and future clients, they have received a great deal of market attention.
DebtPro 123 has an outstanding debt resolution process that is an excellent opportunity to incorporate an income stream to a growing industry while offering a great product to their clients. The program, Debt Resolution, is the best and most impelling debt relief process currently available in the last eight years. The debt relief process has assisted customers to offset thousands of account to the tune of millions of dollars. DebtPro 123 does not work for creditors, banks or credit card companies.
In just eighteen months you can assist your clients to reduce their debts. This unique Debt Resolution Process will give you the advantage over your competition, while handing your clients a debt relief program that is quicker and more hard-hitting than other options out there. DebtPro 123 has been getting huge corporate accounts, non-profit organizations, in addition to financial planners, real estate officers, mortgage brokers, credit repair companies and many of these are for their sole debt relief providers. Along with most unsecured debts, DebtPro 123 reduces credit card debt. They offer zero percent interest and one low monthly payment. DebtPro 123 is the supreme solution for credit card debts, business debts, educational debts and other companies your clients owe money to.
DebtPro 123 has helped hundreds of affiliates help thousands of clients with their need for debt relief. Each month, we eliminate hundreds of thousands of dollars of debt.
An excellent alternative to bankruptcy is DebtPro 123. If you are in the mortgage business this is a first-class opportunity for you because DebtPro 123 provides recurring revenue, helps you tap into a trillion dollar industry and helps people with debt is a recession proof industry.
For clients who have overbearing unsecured debt there are limited options. Those options are bankruptcy (Chapter 7 or 13), credit consumer counseling, debt management, or debt settlement. DebtPro 123’s Debt Resolution Process is unique from all of those. It is not new but this process is newly being exposed to Middle America, who are taking advantage of the opportunity and wanting more information about the product.
Their product provides to the lower ($10K-$30K) and the mid ($40K-$60K) amount of debts, but it also works well as a station program for business owners loaded down with business lines of credit or credit cards from the unsuccessful economy.
For more information or queries about debt relief please send any correspondence to the Debt Pro 123 Group to info@debtpro123.com
How Does An IVA Help You Out Of A Debt Crisis?
An Individual Voluntary Arrangement is an official binding agreement between an individual and his/her creditors that give them privilege to disburse a smaller amount of money than they owe to their debtors in reality. This is usually considered as a substitute to bankruptcy; however, one can choose to go for an IVA even if they already are bankrupt.
The Insolvency Act introduced the term Individual Voluntary Arrangement for the first time in 1986. Its procedure includes the employment of a Licensed Insolvency Practitioner who assists you to get to a negotiation with your creditors about the sum you will be giving them in the future. Following a vigilant examination, an offer is given to every creditor mentioning precisely what they can manage to pay every month, and in what time duration. The sum that is put forward to the debtors is based on the financial situation and capability to make those disbursements on a regular basis. Though there are a lot of IVA consultants practicing all over the UK, it is essential to employ a dependable person on whom you have confidence.
IVA does not only prevent creditors from bankruptcy, but it is also good choice for the creditors as it offers them elevated payments than other choices. It is essential to recommend the creditors a superior deal than they will get from bankruptcy; if not, they may decline the proposal. For finalizing the agreement 75 percent of the creditors must have the same opinion about it.
An IVA can be a perfect debt solution for you because it offers many advantages. It reduces your debt to a level that you can afford to repay, so you can continue with your life without the threat of legal action. It also allows you to be debt free in around three to five years, by paying a fixed monthly instalment.
The creditors are bound not to raise this amount, and neither can they raise the rate of interest on the debt. The best thing is that they do not need to deal with the creditors themselves since their practitioner will be in charge for that. Therefore, it is considered as a trouble-free and straightforward method of debt repayment.
An IVA helps you maintain your privacy and integrity while you pay your debt, unlike a bankruptcy filing, which has to be announced and disclosed. In this way, you will not be forced to leave your job or face embarrassment. Perhaps the biggest advantage is that, unlike a bankruptcy case, an IVA does not give the debtors control of your property or valuables. You do not have to give up ownership of your home or fear legal action.
So, for people who are in a financial difficulty, an IVA will prove to be a pleasant substitute to bankruptcy. After the completion of the time period of an IVA, the left over debt is taken off and the debtor eventually gets debt free. But, in case of failure to make payments, a lawful action can be employed against you.
Before taking an IVA, one must remember that it is an immense commitment; hence, one must make sure that the plan they select suits their financial standing.
Edward Woodwards is a financial consultant. You can take iva help and solutions to your debt problems. Find out more information at his recommended website http://www.iva.org.uk.
Help Your Children Manage Finances in a Bad Economy – Teach them Financial Literacy Early
Today US is facing its worst recession in three decades, which should be a reminder to responsible parents that it is highly important to teach financial literacy to young adults in the family. In fact it would be a highly appreciable if it was included as a school syllabus and children were taught the nuances of financial management at an early age.
Today there are more number of college students relying on their credit cards instead of their parents or other sources of income. In fact there is a steep 46% increase in the average amount of debt taken by college students.
The sudden steep rise can be contributed to the possession of four or more credit cards per student. So, this leaves them with a large $7000 debt balance by the end of their college education. It has also been found that one-thirds of students rarely or never discussed credit card issues with parents.
A new Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 has been passed in May this year. This is to protect the American consumers, especially young people at college level. The act is primarily aimed at protecting college students and young adults, through the inclusion of a requirement that states that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students.
While the new Act can work in favor of those with huge debts, financial literacy is the key to make a universal impact on todays youngsters. It is important for young adults to learn how to build their credit without actually having a credit card. There are online personal money management softwarewhich is very simple to understand and use.
It is important for all college students to start using budget planning softwarefrom their early college days in order to help them save and then use the finances to pay for their college education. They can use online tools that will help them to visualize the earning-spending patterns and set realistic and achievable budget goals. These sites also provide instant mobile alerts on monthly purchases and current balances.
Realize Your Goals Faster with Proper Financial Planning
Most people fail to realize that simple financial planning can help them to get out of debt faster and also build a reliable savings backup. When one learns the art of money management at an early age, achieving life’s goals can be simpler.
There are some easy guidelines that will help to plan for future finances and achieve our personal goals too.
Remain Focused – To remain focused and get what you have always desired, like a car or house, bad debt must be completely cleared away. Bad debt includes large monthly loan payments and most importantly, credit card payments. Adopt each debt for a particular period of time and get rid of all of them completely. Only a debt free financial condition can help in easy accomplishment of personal goals.
Financial Analysis – The next step is to put down short term personal goals that can be covered in the next three to five years. Create a financial plan for each of those goals. Examples for short term goal are: funding your child’s high school education or purchasing a car or buying home improvement products. By charting out financial requirements for goals, we can understand our current financial position better.
Financial Tracking – The outcome of the analysis may require some hard decisions to be taken for creating an investment backup. Track your bills, monthly, half-yearly or yearly on a regular basis, because bill management can help you to understand spending pattern and make plans to re-direct them into proper savings.
Goal Achievement – Short term personal goals are the best way to start our savings plan, because they will motivate us to work harder and achieve other important personal goals too. In order to make things simpler, we must learn to use online personal finance software. The software aids to review all our bank accounts from one place and provides many cash flow and bill management features that are basically required for goal achievement.
Facts And Figures About Bill Consolidation
Okay, you are now officially in deep trouble financially, and you are looking for an escape from all those bill collectors hounding you day and night, and your credit rating is steadily sinking, and you just wish you could run away somewhere and hide because you can’t take it anymore. Well, there is help for those of us who flunked Managing Your Finances 101, and a lot of that help is in the form of debt resolving companies who will help you through the throes of bill consolidation and get your head back on straight without the daily headaches.
There is a group of debt consolidating services called Consumer Credit Counseling Services that can take your debt, pack it into a lump sum amount, sort out your finances and then negotiate with your creditors directly for a repayment amount and plan; and after all that, they will formulate a monthly payment plan that you can handle. They take the monthly payment you agree to send to the company every month, and they divide it up amongst the creditors and slowly pay off each debt until they are eliminated. From that point on, they will help you construct a budget that keeps you on track and in the black.
Choosing a counseling company that you can work with is sometimes a daunting feat, but just keep your nose to the grindstone and do your due diligence, and you will find one that will understand your particular situation and regardless of credit standing, will be willing to work with you. Just be careful when searching, because there are tons of scam artists out there in this field, and they promise you the world but deliver little. One thing to remember; it is not a good idea to replace the debt you have with a new loan; the only time that would be an option is if the new loan had a fantastic interest rate, and your debts all had high ones—–then substituting a new loan would be workable because you would unload all your previous debt and save money in the process.
If your credit rating is taking a serious hit because of your out of control debt, then you need to be working with a counseling company that can not only negotiate with the creditors, but will send them a payoff letter when the debt is resolved; clearing the debt once and for all and closing it out. The credit card companies love to see this action, and will adjust your credit rating accordingly as each payoff letter is received by the company and duly noted to the credit rating companies.
Working with a credit counseling service can be a big plus for you if you are strapped financially, because they can take the worry out of your hands by setting up a bill consolidation plan and as a result, set up a monthly payment plan whereby you would pay them a monthly lump sum and they in turn would dole out the payments to your creditors after they had negotiated a payoff settlement agreement with the creditors. Because of this, sometimes the creditors will waive late fee repayment fines and as a result, save you money. Be aware, though, some counseling companies will charge you upfront fees because there are many people who will default on their agreement with the company and walk away. This way the company has a means of covering their losses, but there are equally as many that do not charge upfront fees, so again; research your choices carefully before you decide on one.
The act of bill consolidation alone is a good move if you have lots of outstanding loans with high interest rates, or you are being hounded by creditors because you are behind in payments. This way, you have one monthly payment to worry about, and the debt counseling company is taking the heat off of you by dealing with the creditors directly and devising a plan both you and your creditors will be happy with. Even if you have bad credit, most of the companies will work with you, albeit for a higher fee most of the time, but that is better than the outrageous fees you will end up paying the credit card companies and other places, if you do not do something to eliminate the debt.
When you are choosing a counseling company, just remember that the best way to insure future success in paying off your debt is to go with a company that will close out your accounts and clear them completely when the outstanding debt has been paid off. The reason for that is we all know the sound of temptation’s call, and if you are left with cleared credit cards, guess what happens——in no time at all you will start using them again——-and the beat goes on. Get rid of your debt once and for all with bill consolidation, and get on with your life.
CESI Can Help You Get Debt Free
With the economy in the state that it is in these days, more people than ever are deep in debt and cannot find the resources to get out on their own, or they have no idea how to start or where to start. There are many options open for people in these circumstances, and one of the most comprehensive groups out there with many offerings of help is CESI for getting debt free.
CESI is a terrific resource for getting you debt free and because of the wide array of programs that they have, and the many fields of counseling help available; they would be able to solve most anyone’s debt problems no matter what the cause or circumstance. CESI stands for Consumer Education Services,Inc and they have an all encompassing website on the Internet that could help you find the correct avenue to take to begin to alleviate your financial problems. They are a part of Care One Credit Counseling Service, a service provider.
The main focus of CESI and getting you debt free, is to provide free counseling services and financial counseling to those who are at a loss as to how to tackle the mountain of debt they have accumulated and how to save what little they have left. The service provides information and one on one help for not only how to stop your current nightmare of debt from continuing, but also to teach you how to stay out of debt in the future, how to plan your financial strategy for the future, and how to get your life back on track.
From the responses from satisfied former customers of CESI and their struggle to become debt free, the outward appearances are that this is an organization that knows what it is doing, and has many resources from all areas of credit and financial worlds to help you get right side up again. The customers range from all kinds of financial situations and from all walks of life, and CESI has been the deciding factor in helping them in their struggle, by offering solutions tailored to their unique problems, income, debt load, and overview of the future.
Check out the website for CESI on the Internet and you will see the numerous programs they have for getting you debt free. To mention a few: Bill Consolidation, Credit Counseling, Financial Education, the Debt Management Program, and Debt Consolidation Program. All these and many many more are available to you with free counseling to help get you back on your feet and get your credit and financial standing back on positive ground.
Multiple ways exist with working with CESI to get you debt free, and it depends on what kind of situation you are most comfortable with as to which route you choose. If you prefer the telephone, there is an 800 number you can call and talk to a counselor, or if you would rather talk with an advisor face to face, then that option is there as well. Or if you just want to work online, that is your choice and it can be done. The counselor will ask all kinds of questions about your financial status, your spending habits, your income—-everything he or she needs to know to start getting you out of this financial mire you are in. Then, once the basic info is gathered, the advisor will contact your creditors, work with them on your behalf and work out a payment plan that is workable for you and is approved by your creditors as well. Finally, your advisor will lay out a budget for you for the future so you can keep your finances in check and under control farther on down the road.
Bankruptcy is not the only solution for many people who feel they are at the end of their financial rope, and want relief. There are numerous ways out of a single situation, all you need to know is how to find those solutions and how to implement them. CESI can help you do that, and soon you will be debt free.