Consciously Get Out Of Debt: Part 1
You have decided to take a loan from a friend, family, or associate. You have made this decision because you need the cash flow, however, in order to pay it back you have to understand it is a debt, and you need to manage a debt to pay it back. In this case, we have compiled some basic tips of how to get a grip on your debts and whether you have the appetite for what it takes to manage yourself.
It is just a matter of time before you become concerned with how much money you owe to your creditors. It’s natural in business to have your highs and your lows, success is around the corner when you have a plan. Well, in any event, we intend on helping you handle your debts, stay out of debt, and think about making money, cash flow, and responsibly growing your wealth.
You might think you have been irresponsible before with money, or maybe you have not been irresponsible and you simply are victim of flat wages, raising costs, and or the woes of investments that have not panned out. All income levels take loans, all are stretched at times, and there is no question that you want to take the right approach by knowing where you are at and doing something about it.
Where You Are At
Monthly Income versus Monthly Spending
One of the tricks of have developed over the years with new technology is simply taking pictures of my bills, receipts, and invoices with my personal telephone camera. The actual receipts end up in a box, labelled, and rarely ever reopened. If you own a business, you keep track of expenses and in coming income. Create a spread sheet of your monthly spending, right down to the change you put in the parking meter. It’s important to do so. If your expenses are larger than your monthly income, you are keeping yourself poor. Sometimes it takes money to feel good about yourself, sometimes happiness attracts more money, but if you don’t consciously have control and knowledge of how your money is spent or invested, than you will never consciously become wealthy. There is actually a free assessment that you could look at using at: http://www.creditcanada.com/welcome.asp
Consciously Creating Your Success
If you can consciously identify how you made $1 you can make $1 million dollars. If you don’t consciously know how you made your money, than when it’s taken away, it becomes even more difficult to get it back. How you spend your money is just as important in how you make your money for your success. If you consciously know how you are spending a dollar, than you can spend a million dollars and know how you did it, why you did it, and where it went. Knowing where you spend it is a major part of knowing how you made it, as every dollar is an investment in your success, your happiness, your conscious success. Be conscious of how you make your money, be conscious of how you spend your money. It is important not to dwell on the debt, think of it as the stepping stone to your success and a kink in the road.
It is vital that you order your Credit Reports, such as:
You should find out your FICO score, this is to assist in finding out your financial health. What do these reports mean to you and why should you invest in having them? So this is how it works: Your financial behaviour is run through a computer that uses an algorithm to produce your personal credit score on spending behaviours, accounts, debts, and timeframes related to these activities. The scale for the score runs from 300 to 900, with most consumers falling in the 600 to 750 range. Credit bureaus that license the software for generating FICO scores (the abbreviation for the leading company in the field Fair, Isaac & Company) agree not to share scores with individual consumers. You can ask your Bank, or you can just purchase this from Equifax: https://www.econsumer.equifax.ca/ca/main
Firstly, the reports may stand as a personal tool to help you manage your credit worthiness and fix it if there is a problem. Secondly, the reports and FICO score may be useful tools to show to the person or entity you are taking a personal loan with. If you have taken the time to purchase a loan document, such as that made by www.kasu.ca, or www.documentyourloans.com, then the report simply improves your credibility and gives an honest view of your financial situation. A negative is sometimes a selling point if it shows a positive, such as honesty, integrity, and the intention on paying back the loan. Making a plan, backing up that plan, and taking the loan responsibly is the best way to get loans in the future and leverage who you are. Someone is lending you money because they know you, they like you, they trust you. You might even want to show them the financial plan so they can see how their money will be put to use, what in coming income you have, and forecast of how you intend on getting out of debt.
If you feel overwhelmed by your debts, you could consider debt counselling, you could talk to a free resource such as, http://www.creditcanada.com/.
Written by Ryan Gibson, Ryan@publishknowledge.com