Many company owners that are currently going through a financial problems, such as multiple debts, realize that the problem definitely cannot be fixed or faced without the help of a business consolidation debt information company. These businesses have teams of people that take each case separately and analyze it in order to define which solution or method to apply to them, that is why the business consolidation debt information process is so necessary because the information gathered in every business is different and so the solution.
James Morrison, current client at Commercial Debt Counseling is the owner and manager of his own business and is going trough the process of business consolidation debt information where the professional counselors take a close look at his business and they sketch up a settlement and payment plan his specific case. This method is highly successful but it takes a lot from the combined effort of both, the client and the creditor that communicate through our team of specialist in order to maintain a healthy relationship. We make the deals with the creditors and after that we let the client know which offers are good enough to be considered, that is what the clients get with business consolidation debt information.
James Morrison: The business consolidation debt information process will save me from bankruptcy?
James Banks: For sure, bankruptcy although it may be known by people as a way out of debt problems it is also known for bringing some interesting secondary effects, such as high interest rates, the entry for bankruptcy will remain for as long as 7 years and your company will not be well seen under the lenders eyes.
James Morrison: What should I have in mind when choosing a business consolidation debt information company?
James Banks: Out there, meaning the internet and the current market, there are lots of business consolidation debt information programs to choose from, you could confused along the way of seeking a program that will fulfill all your demands. But remember, that is worth the effort because after choosing well you will be assuring your future. Specially given that there are many scams that promise one thing and do not accomplish it, remember that many of these companies are merely garage businesses that hire all of the services with a third company that lends all of the services. Ask for advice with the business consolidation debt information counselor and you will know what to look for.
The business consolidation debt information program, must: - Sketch a payment plan that will fit your business needs - Lower your interest rates - Help you find ways to make up a budget that will help free your business from debt - Be sure that the company provides business consolidation debt information counseling
James Morrison: How can I start the business consolidation debt information program?
James Banks: Simply, but filling out the online form on our site you will get signed in the business consolidation debt information program, after that you will receive a call from one of our counselors and he will explain how our program works, the benefits and the damages that will bring. Also the counselor will explain how your business situation can be improved and how to stop that the situation gets worse.
Business debt is not something to take lightly, it is a serious matter that can bring your company to bankruptcy, so take it in your hands but let professional people deal with the debt matter. After applying for the business consolidation debt information program you can also use it to learn from the counselors in order to avoid future debt situation and stay free, although it may no be an easy task but with an organized budget and proper decisions you can maintain your business as a profitable one and avoid as much as possible.
We have different articles on interesting topics and current and former clients' experiences with our programs. Take a look at the different situations on Business Consolidation Debt Information and related topics that people can fall into and how to keep yourself a debt free person. Check these links to learn more:
http://www.commercialdebtcounseling.com/useful-resources.shtml
http://www.commercialdebtcounseling.com/testimonials.shtml
About the Author
James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Consolidation Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328
Thursday, April 12, 2007
Your Business Is Incorporated - But Are Your Personal Assets Safe?
Many small business owners understand the benefit of incorporating, but they don't realize how easy it is to lose their "corporate status" if they get sued or end up in bankruptcy. This is dangerous because then the court can come after their PERSONAL assets (like their house, car, savings, etc)!
Today, I will review a little bit of why incorporating is so important for small business owners, and then tell you five simple steps you can follow to protect your personal assets, even if your business gets sued or goes through bankruptcy.
It makes sense to incorporate for a couple of reasons. First, because it protects you from personal liability, and second, because it offers you some great tax advantages. For today, we're going to just focus on the personal liability part.
When you incorporate, your business becomes like another person. This other person has it's own bank account, it can own things like property, and it can take risks. Even if that "other person" (your business) goes completely bankrupt or gets sued, YOU are safe (assuming you do everything correctly).
This is important because many new businesses fail, but you as the entrepreneur don't want to fail. You want to pick yourself back up and start your NEXT business which will be even more successful. Failure is a necessary way to learn, so we want it to be as painless as possible.
When everything works like it should, then yes, you PERSONALLY are protected. But there are certain situations where your corporate status doesn't help you out, and every business owner should be aware of them!
You see, setting up a company gives you so much protection from liability, that unethical people in the past have tried to take advantage of it. They have created "shell corporations", or businesses just for the purpose of liability protection, to help them get away with various crimes.
Of course, the law had to be modified to weed out these people and make sure they were appropriately prosecuted. But in the process, the requirements for honest small business owners became TOUGHER. Some extra steps are now required to make sure your corporate status stays intact.
By the way, whenever a court decides to waive the corporate protection and actually prosecute the owners behind the company PERSONALLY, they call it "piercing the corporate veil". (Lawyers always like to come up with fancy names for things.)
Following are the top five ways to protect you personal assets then starting a business. Make sure you do these correctly, and you can be sure that even if your business experiences a colossal failure, or gets sued out of existence, at least your personal assets are safe and you can start over.
1. Never Engage in Fraud or any Criminal Act
This sounds simple, but many small businesses owners unknowingly break the law. Never sell a product you know is defective or doesn't work, misrepresent something in your advertising, forge any signatures, or pull a bait and switch (offer a great deal to get people in the door only to tell them it is out of stock so you can sell a substitute.) Run your business HONESTLY and with INTEGRITY every day, and it will pay off in the long run.
2. Never Misrepresent Your Corporate Officers or Members
Don't ever lie about who is involved in your company. When it comes time to ask for investors, or get people to support you, you may be templed to exaggerate about who is actually working with you. If they haven't actually SIGNED your operating agreement, then they aren't your partner.
3. Make Sure Your Follow All Corporate Formalities
If you are going to claim you are a company, then you'd better act like a company. That means you have to file all important documents and keep them on file (your operating agreement, articles of incorporation, and DBA for example). You also have to keep detailed financial records. In Breaking Free, I provide samples of these documents and show you exactly how to create them yourself. This will literally save you thousands of dollars in legal expense because you won't have to pay a lawyer to create them for you. (Read more below)
4. Keep Your Business and Personal Assets Separate
The business has to have it's own bank account. The money in that bank account is not YOUR money. It belongs to the business. In fact, if you decide one day come along and take some money out to buy yourself a Hawaiian vacation, that is called embezzlement (a crime)! Many first time business owners (especially if they are the sole owner) don't understand this concept. The money in the company is not theirs. The company is like a separate person, and all assets must be treated as such.
5. Never Treat the Business' Assets as if They Were Your Own
Don't deposit your personal checks into the corporate account. Don't use company money to finance your personal life and hobbies. Don't lend the company car to your buddy for a weekend excursion. Don't set up a cot in the back of the office and start living there! Again, the business and yourself are two separate people. Treat them accordingly.
With these five basic steps, you will be well on your way to protecting your personal assets in the event your business goes under.
Many successful business people, from Donald Trump to John D. Rockefeller, went through periods of ups and downs in their life. Not every company they bet on was a success. But they managed to survive and lived to fight another day because they where smart enough to INCORPORATE correctly. They followed the above five steps to make sure they wouldn't lose their corporate status in the event of a lawsuit. They made sure that their PERSONAL assets were safe, even if the COMPANY went bankrupt.
About the Author
Brian Armstrong is the author of Breaking Free, and is an authority on How to Start a Business. Learn how to incorporate the easy way and protect your assets in our FREE Online Course. Click Now!
Today, I will review a little bit of why incorporating is so important for small business owners, and then tell you five simple steps you can follow to protect your personal assets, even if your business gets sued or goes through bankruptcy.
It makes sense to incorporate for a couple of reasons. First, because it protects you from personal liability, and second, because it offers you some great tax advantages. For today, we're going to just focus on the personal liability part.
When you incorporate, your business becomes like another person. This other person has it's own bank account, it can own things like property, and it can take risks. Even if that "other person" (your business) goes completely bankrupt or gets sued, YOU are safe (assuming you do everything correctly).
This is important because many new businesses fail, but you as the entrepreneur don't want to fail. You want to pick yourself back up and start your NEXT business which will be even more successful. Failure is a necessary way to learn, so we want it to be as painless as possible.
When everything works like it should, then yes, you PERSONALLY are protected. But there are certain situations where your corporate status doesn't help you out, and every business owner should be aware of them!
You see, setting up a company gives you so much protection from liability, that unethical people in the past have tried to take advantage of it. They have created "shell corporations", or businesses just for the purpose of liability protection, to help them get away with various crimes.
Of course, the law had to be modified to weed out these people and make sure they were appropriately prosecuted. But in the process, the requirements for honest small business owners became TOUGHER. Some extra steps are now required to make sure your corporate status stays intact.
By the way, whenever a court decides to waive the corporate protection and actually prosecute the owners behind the company PERSONALLY, they call it "piercing the corporate veil". (Lawyers always like to come up with fancy names for things.)
Following are the top five ways to protect you personal assets then starting a business. Make sure you do these correctly, and you can be sure that even if your business experiences a colossal failure, or gets sued out of existence, at least your personal assets are safe and you can start over.
1. Never Engage in Fraud or any Criminal Act
This sounds simple, but many small businesses owners unknowingly break the law. Never sell a product you know is defective or doesn't work, misrepresent something in your advertising, forge any signatures, or pull a bait and switch (offer a great deal to get people in the door only to tell them it is out of stock so you can sell a substitute.) Run your business HONESTLY and with INTEGRITY every day, and it will pay off in the long run.
2. Never Misrepresent Your Corporate Officers or Members
Don't ever lie about who is involved in your company. When it comes time to ask for investors, or get people to support you, you may be templed to exaggerate about who is actually working with you. If they haven't actually SIGNED your operating agreement, then they aren't your partner.
3. Make Sure Your Follow All Corporate Formalities
If you are going to claim you are a company, then you'd better act like a company. That means you have to file all important documents and keep them on file (your operating agreement, articles of incorporation, and DBA for example). You also have to keep detailed financial records. In Breaking Free, I provide samples of these documents and show you exactly how to create them yourself. This will literally save you thousands of dollars in legal expense because you won't have to pay a lawyer to create them for you. (Read more below)
4. Keep Your Business and Personal Assets Separate
The business has to have it's own bank account. The money in that bank account is not YOUR money. It belongs to the business. In fact, if you decide one day come along and take some money out to buy yourself a Hawaiian vacation, that is called embezzlement (a crime)! Many first time business owners (especially if they are the sole owner) don't understand this concept. The money in the company is not theirs. The company is like a separate person, and all assets must be treated as such.
5. Never Treat the Business' Assets as if They Were Your Own
Don't deposit your personal checks into the corporate account. Don't use company money to finance your personal life and hobbies. Don't lend the company car to your buddy for a weekend excursion. Don't set up a cot in the back of the office and start living there! Again, the business and yourself are two separate people. Treat them accordingly.
With these five basic steps, you will be well on your way to protecting your personal assets in the event your business goes under.
Many successful business people, from Donald Trump to John D. Rockefeller, went through periods of ups and downs in their life. Not every company they bet on was a success. But they managed to survive and lived to fight another day because they where smart enough to INCORPORATE correctly. They followed the above five steps to make sure they wouldn't lose their corporate status in the event of a lawsuit. They made sure that their PERSONAL assets were safe, even if the COMPANY went bankrupt.
About the Author
Brian Armstrong is the author of Breaking Free, and is an authority on How to Start a Business. Learn how to incorporate the easy way and protect your assets in our FREE Online Course. Click Now!
Business Debt Negotiation. Settling Your Business Debts
Business debt Negotiation has become more and more a popular option in recent years like the most successful debt solution in the market for any financial difficulties. People can apply for business debt negotiation or personal debt negotiation but one of the main problems nowadays is that the internet has lots of misinformation about these processes, causing people to distrust these programs, due to the huge amount of scams on the net.
- What is business debt negotiation?-
Business debt negotiation is a process by which businesses negotiate with their creditors to reduce the balance of their total amount of debt. Depending on the client's circumstances, the creditors will decide what percentage the debt will be reduced to, the reduction can be as low as 40 to 50 percent. Once the creditor receives the funds the account will be zeroed out and your business will be debt free again.
- How does business debt negotiation affect the credit score? -
If you have been paying your debt on time and you are used to having your accounts current your credit score will surely be affected, and the business debt negotiation program will have a negative impact on your account, but there is one detail worth mentioning, before you attempt to apply for the business debt negotiation program, you see, before a creditor decides to see the possibility of accepting less than the complete balance as payment, your account must be in a delinquent state meaning that at least your business will have to be behind 3 months on monthly payments.
After your business has settled or negotiated every account and every deal has been paid then the account is closed and is reported as paid in full and the credit report will reflect a zero balance on each account. After that, each account of the credit report will begin to return to a number that is acceptable and eventually you will be able to obtain a mortgage, a car loan, or any other type of credit, once again. This happens generally a few months after finishing the whole process of the business debt negotiation.
- Is there any tax liability after applying the business debt negotiation program? -
When the creditor has already agreed to settle your account for less than the full amount, they are required by the IRS to report the canceled debt, if the amount of the forgiven debt is $550 or greater you may have to pay some taxes, although there is a possibility that you may not be required to do so if you can prove that you were "insolvent" at the time you finished settling your debts.
Here is some advice for those businesses that are suffering from debt and are thinking about applying for the business debt negotiation program:
Do not wait until your business has gone bankrupt, because there are several ways of helping you with your debts, although bankruptcy may seem very useful, it is at first, but like any radical solution it also brings lots of side effects that you will have to carry for several years to come. It is not easy to make decisions being a business entrepreneur, that is why you should always look out for the professional counseling that the business debt negotiation program offers. After successfully finishing the program you can enjoy of the learning programs that the business debt negotiation program has that will help you make decisions regarding your business financial future and will guide you both through the debt free road.
We have different articles on interesting topics and experiences from current and former clients with our programs. Take a look at related topics of different situations on Business Debt Negotiation that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp
http://www.curadebt.com/about.asp
About the Author
Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Negotiation and Debt Help Consultation, call toll-free 1-877-850-3328
- What is business debt negotiation?-
Business debt negotiation is a process by which businesses negotiate with their creditors to reduce the balance of their total amount of debt. Depending on the client's circumstances, the creditors will decide what percentage the debt will be reduced to, the reduction can be as low as 40 to 50 percent. Once the creditor receives the funds the account will be zeroed out and your business will be debt free again.
- How does business debt negotiation affect the credit score? -
If you have been paying your debt on time and you are used to having your accounts current your credit score will surely be affected, and the business debt negotiation program will have a negative impact on your account, but there is one detail worth mentioning, before you attempt to apply for the business debt negotiation program, you see, before a creditor decides to see the possibility of accepting less than the complete balance as payment, your account must be in a delinquent state meaning that at least your business will have to be behind 3 months on monthly payments.
After your business has settled or negotiated every account and every deal has been paid then the account is closed and is reported as paid in full and the credit report will reflect a zero balance on each account. After that, each account of the credit report will begin to return to a number that is acceptable and eventually you will be able to obtain a mortgage, a car loan, or any other type of credit, once again. This happens generally a few months after finishing the whole process of the business debt negotiation.
- Is there any tax liability after applying the business debt negotiation program? -
When the creditor has already agreed to settle your account for less than the full amount, they are required by the IRS to report the canceled debt, if the amount of the forgiven debt is $550 or greater you may have to pay some taxes, although there is a possibility that you may not be required to do so if you can prove that you were "insolvent" at the time you finished settling your debts.
Here is some advice for those businesses that are suffering from debt and are thinking about applying for the business debt negotiation program:
Do not wait until your business has gone bankrupt, because there are several ways of helping you with your debts, although bankruptcy may seem very useful, it is at first, but like any radical solution it also brings lots of side effects that you will have to carry for several years to come. It is not easy to make decisions being a business entrepreneur, that is why you should always look out for the professional counseling that the business debt negotiation program offers. After successfully finishing the program you can enjoy of the learning programs that the business debt negotiation program has that will help you make decisions regarding your business financial future and will guide you both through the debt free road.
We have different articles on interesting topics and experiences from current and former clients with our programs. Take a look at related topics of different situations on Business Debt Negotiation that people can fall into and how to keep yourself a debt free person.
Check these links to learn more:
http://www.curadebt.com/settlement/business-debt-negotiation/business-debt-settlement-negotiation.asp
http://www.curadebt.com/about.asp
About the Author
Debbie White is a contributing writer to http://www.curadebt.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Negotiation and Debt Help Consultation, call toll-free 1-877-850-3328
Business Growth - Examining Five Killer Strategies For Trouncing the Competition
Winners in business play rough and don't apologize for it.
Toyota has steadily attacked the Big Three where their will to defend was weakest, moving up the line from compact cars to mid- and full-size vehicles and on to Detroit's last remaining profit centers, light trucks and SUVs. All the while, Toyota has dared its rivals to duplicate a production system that gives the company unmatchable productivity and quality.
Dell is similarly relentless, and ruthless, in dealing with competitors. Last summer, the day after Hewlett-Packard announced weak results because of price competition in PCs, Dell announced a further across-the-board cut - delivering a swift kick to a tough rival when it was down.
Wal-Mart is well known for its uncompromising stance toward suppliers. In 1996, Rubbermaid, a $2 billion business that a few years earlier had been Fortune's most admired company, ventured to contest Wal-Mart's pressure on suppliers to lower their prices - and Wal-Mart simply cut Rubbermaid off. (Newell acquired a struggling Rubbermaid in 1999.) Wal-Mart doesn't pull punches with competitors, either. In recent years, as Kmart floundered in bankruptcy proceedings, Wal-Mart rolled out a knockoff of Kmart's Martha Stewart product line, putting pressure on one of the tottering retailer's few areas of success.
Hardly anyone would dispute that Toyota, Dell, and Wal-Mart have epitomized corporate success over the past decade. But the raised eyebrows they provoke - recent BusinessWeek cover articles have included "Can Anything Stop Toyota?" "Is Wal-Mart Too Powerful?" and "What You Don't Know About Dell" - suggest there's something not quite kosher about the way they achieve that success.
That's because Toyota, Dell, and Wal-Mart play hardball. What do we mean by this? Hardball players pursue with a single-minded focus competitive advantage and the benefits it offers - leading market share, great margins, rapid growth, and all the intangibles of being in command. They pick their shots, seek out competitive encounters, set the pace of innovation, test the edges of the possible. They play to win. And they do.
Softball players, by contrast, may look good - they may report decent earnings and even get favorable ink in the business press - but they aren't intensely serious about winning. They don't accept that you sometimes must hurt your rivals, and risk being hurt yourself, to get what you want. Instead of running smart and hard, they seem almost to be standing around and watching. They play to play. And though they may not end up out-and-out losers, they certainly don't win.
This may reflect the recent emphasis of management science, which itself has gone soft. Indeed, the discourse around a constellation of squishy issues - leadership, corporate culture, customer care, knowledge management, talent management, employee empowerment, and the like - has encouraged the making of softball players.
"Hardball", George Stalk, Jr. and Rob Lachenauer, Harvard Business Review, April 2004.
About the Author
Melih ("may-lee") Oztalay, CEO SmartFinds Internet Marketing Web: www.cjps-enterprises.com EMail: melih@hsfideas.com At CJPS Enterprises, we specialize in execution. Getting things done. Our approach is designed to give your company an unfair advantage.
Toyota has steadily attacked the Big Three where their will to defend was weakest, moving up the line from compact cars to mid- and full-size vehicles and on to Detroit's last remaining profit centers, light trucks and SUVs. All the while, Toyota has dared its rivals to duplicate a production system that gives the company unmatchable productivity and quality.
Dell is similarly relentless, and ruthless, in dealing with competitors. Last summer, the day after Hewlett-Packard announced weak results because of price competition in PCs, Dell announced a further across-the-board cut - delivering a swift kick to a tough rival when it was down.
Wal-Mart is well known for its uncompromising stance toward suppliers. In 1996, Rubbermaid, a $2 billion business that a few years earlier had been Fortune's most admired company, ventured to contest Wal-Mart's pressure on suppliers to lower their prices - and Wal-Mart simply cut Rubbermaid off. (Newell acquired a struggling Rubbermaid in 1999.) Wal-Mart doesn't pull punches with competitors, either. In recent years, as Kmart floundered in bankruptcy proceedings, Wal-Mart rolled out a knockoff of Kmart's Martha Stewart product line, putting pressure on one of the tottering retailer's few areas of success.
Hardly anyone would dispute that Toyota, Dell, and Wal-Mart have epitomized corporate success over the past decade. But the raised eyebrows they provoke - recent BusinessWeek cover articles have included "Can Anything Stop Toyota?" "Is Wal-Mart Too Powerful?" and "What You Don't Know About Dell" - suggest there's something not quite kosher about the way they achieve that success.
That's because Toyota, Dell, and Wal-Mart play hardball. What do we mean by this? Hardball players pursue with a single-minded focus competitive advantage and the benefits it offers - leading market share, great margins, rapid growth, and all the intangibles of being in command. They pick their shots, seek out competitive encounters, set the pace of innovation, test the edges of the possible. They play to win. And they do.
Softball players, by contrast, may look good - they may report decent earnings and even get favorable ink in the business press - but they aren't intensely serious about winning. They don't accept that you sometimes must hurt your rivals, and risk being hurt yourself, to get what you want. Instead of running smart and hard, they seem almost to be standing around and watching. They play to play. And though they may not end up out-and-out losers, they certainly don't win.
This may reflect the recent emphasis of management science, which itself has gone soft. Indeed, the discourse around a constellation of squishy issues - leadership, corporate culture, customer care, knowledge management, talent management, employee empowerment, and the like - has encouraged the making of softball players.
"Hardball", George Stalk, Jr. and Rob Lachenauer, Harvard Business Review, April 2004.
About the Author
Melih ("may-lee") Oztalay, CEO SmartFinds Internet Marketing Web: www.cjps-enterprises.com EMail: melih@hsfideas.com At CJPS Enterprises, we specialize in execution. Getting things done. Our approach is designed to give your company an unfair advantage.
Tuesday, April 10, 2007
Money Talk or "Debt Us Do Part"
Whether you are thinking of getting married, you are a newly wed, or you are a seasoned couple of marital bliss, you must have a joint talk about debt and credit. Debt communication is simply not an option. This debt and money talk article can open doors of communication and enhance the success of your marriage. In the case of pre marital situations, it may allow you to realize "problems" before they even start.
In David Olson's 2003 National Survey of Marital Strengths we learn that the average adult spends 80% of waking hours earning, spending, or thinking about money. In a study of 21,501 couples Olson found that 66% indicated indebtedness was one of the top 5 major stumbling blocks to their marriage.
Conversely, he discovered "one of the unique strengths of the majority of happy couples was that they did not have major debt problems." Similarly the Administration office of the US Courts tell us there were 1,661,996 bankruptcies filed in Fiscal Year 2003 (up 7.4 percent from the 1,547,669 filings in Fiscal Year 2002). Bankruptcies have exceeded 1 million filings annually since the early 90's and show no signs of letting up.
All of the above strongly indicates one thing. Far more financial communication must occur in the relationship.
To overcome some of these staggering statistics, I firmly believe each couple has a superior chance of surviving separation and/or divorce because of financial stress, by simply opening the doors of financial communication. I strongly suggest 4 areas of communication for any couple regardless of how long they have been together. But the sooner in a couple's existence that communication occurs, the greater the opportunity of success for that couple and the less the stress level within their lives.
Here then are 4 suggested areas of financial communication:
1. Hidden Debt and Personalities - openly and without prejudice or pre-judgment a. Share each other's credit report and ask questions about past performances. For example: Why are there late pays? Why is there no credit history? Explain the bankruptcy. What is this judgment about? b. Determine and discuss each person's ability to be a spender or a saver. Do you have a tendency to live paycheck to paycheck or do you have a consuming desire to put at least something away for a rainy day? Do you track every dime or is anything under $10 unimportant to track? c. Discuss any debts not listed in the credit report. d. Determine who has what credit lines and what is each person's feelings on separate credit lines, joint lines, becoming an authorized user and/or co-signing any loans. Similarly discuss checking and savings accounts. e. Discuss who has what assets and should they be kept separated or joined. (Should there be a pre-nuptial agreement?)
2. Goal Setting - where are you going and how will you know when you get there? a. Set specific goals together for the next year, 5 years, and 20 years. b. Read and discuss 5 Proven Steps To Budget Motivation (as well as other Budget Management articles under Article Index above.) c. Commit a plan of action to paper stating how you will be accomplishing your goals. d. List contingency plans when the inevitable "never expected emergency" pops up.
3. Budgeting and CEO - Who will carry the ball?
a. Who will have responsibility for paying the bills and balancing the checkbook? b. How will you deal with existing bills? Especially for newlyweds? Will each continue to pay individually or will you join incomes to meet expenses? c. Together plan out your budget d. Frankly discuss "what if's". 1. No one plans on bankruptcy but what if the bottom falls out? Will you both declare so the one spouse does not have to absorb the other's debt? 2. What if divorce does happen? 3. What if one spouse dies or becomes disabled? 4. "What if..." and fill in the rest. e. Will one person be assigned to listen to the partner but ultimately make the final financial decision or will both have an equal voice? 4. Estate Planning
a. Discuss the existing life, health, and disability needs of each partner. Does it meet current and future needs? b. Talk to a reputable health and disability representative and determine your needs. c. Based upon your future goals, what investment strategies do you intend on initiating and when? d. Who will do your taxes and do you need tax strategies to offset tax payment? e. How will you develop an emergency savings and how much will it be? f. Are there education needs expected?
Now for the ultimate marriage counseling tip. Reschedule this exact same discussion for next year and the year after and the year after that. Just call it your "Annual State of the Union Discussion".
About the Author
In David Olson's 2003 National Survey of Marital Strengths we learn that the average adult spends 80% of waking hours earning, spending, or thinking about money. In a study of 21,501 couples Olson found that 66% indicated indebtedness was one of the top 5 major stumbling blocks to their marriage.
Conversely, he discovered "one of the unique strengths of the majority of happy couples was that they did not have major debt problems." Similarly the Administration office of the US Courts tell us there were 1,661,996 bankruptcies filed in Fiscal Year 2003 (up 7.4 percent from the 1,547,669 filings in Fiscal Year 2002). Bankruptcies have exceeded 1 million filings annually since the early 90's and show no signs of letting up.
All of the above strongly indicates one thing. Far more financial communication must occur in the relationship.
To overcome some of these staggering statistics, I firmly believe each couple has a superior chance of surviving separation and/or divorce because of financial stress, by simply opening the doors of financial communication. I strongly suggest 4 areas of communication for any couple regardless of how long they have been together. But the sooner in a couple's existence that communication occurs, the greater the opportunity of success for that couple and the less the stress level within their lives.
Here then are 4 suggested areas of financial communication:
1. Hidden Debt and Personalities - openly and without prejudice or pre-judgment a. Share each other's credit report and ask questions about past performances. For example: Why are there late pays? Why is there no credit history? Explain the bankruptcy. What is this judgment about? b. Determine and discuss each person's ability to be a spender or a saver. Do you have a tendency to live paycheck to paycheck or do you have a consuming desire to put at least something away for a rainy day? Do you track every dime or is anything under $10 unimportant to track? c. Discuss any debts not listed in the credit report. d. Determine who has what credit lines and what is each person's feelings on separate credit lines, joint lines, becoming an authorized user and/or co-signing any loans. Similarly discuss checking and savings accounts. e. Discuss who has what assets and should they be kept separated or joined. (Should there be a pre-nuptial agreement?)
2. Goal Setting - where are you going and how will you know when you get there? a. Set specific goals together for the next year, 5 years, and 20 years. b. Read and discuss 5 Proven Steps To Budget Motivation (as well as other Budget Management articles under Article Index above.) c. Commit a plan of action to paper stating how you will be accomplishing your goals. d. List contingency plans when the inevitable "never expected emergency" pops up.
3. Budgeting and CEO - Who will carry the ball?
a. Who will have responsibility for paying the bills and balancing the checkbook? b. How will you deal with existing bills? Especially for newlyweds? Will each continue to pay individually or will you join incomes to meet expenses? c. Together plan out your budget d. Frankly discuss "what if's". 1. No one plans on bankruptcy but what if the bottom falls out? Will you both declare so the one spouse does not have to absorb the other's debt? 2. What if divorce does happen? 3. What if one spouse dies or becomes disabled? 4. "What if..." and fill in the rest. e. Will one person be assigned to listen to the partner but ultimately make the final financial decision or will both have an equal voice? 4. Estate Planning
a. Discuss the existing life, health, and disability needs of each partner. Does it meet current and future needs? b. Talk to a reputable health and disability representative and determine your needs. c. Based upon your future goals, what investment strategies do you intend on initiating and when? d. Who will do your taxes and do you need tax strategies to offset tax payment? e. How will you develop an emergency savings and how much will it be? f. Are there education needs expected?
Now for the ultimate marriage counseling tip. Reschedule this exact same discussion for next year and the year after and the year after that. Just call it your "Annual State of the Union Discussion".
About the Author
Mike has been an Internet Guide/Writer in the field of Credit/Debt Management for over 10 years. His site was awarded Best Of Net by Forbes Publication from 2000 to 2005 with site visitation doubling to over 500,000 average views per month in the last year.
He has also offered debt elimination seminars to businesses and community colleges for the last 9 years. http://learncreditmanagement.com
Business Debt Relief: Surviving the Market
When operating a business, business debt may be an unavoidable issue because of mismanagement or the economic instability of the market. Business debt relief has become the result of it.
Business debt refers to the money owed by the business to creditors and is usually higher than personal debts. The money that businesses borrow is most commonly used for the business itself, either for development, expansion or even maintenance. Business debt relief tries to soften the damage caused by the accumulated debt and interest. When borrowing money for business dealings, some creditors offer higher interest rates compared to personal loans, which makes a lot of business operators accrue huge business debts. But regaining financial stability may not be as easy as a manager could plan it. To achieve business debt relief, sometimes the business itself has to give up some assets or some percentage of the company itself.
- Why look for business debt relief? -
When a business starts taking on loans and opening lines of credit, this could result in several serious problems, such as:
- Inability to handle costs - Reduced product quality - Reduced business value - Waning trust among shareholders
Business Debt relief is the way out of accumulated debt, and the saving method for your business.
- How can business debt relief be achieved? -
Business debt relief can be achieved in a number of ways, but the most important thing to do is to specify what kind of debt the business it is. Business debt relief is a process that takes into account the current situation of the business: financial status, sales, and any other data that could show the financial standing of the business. After this is done, with the help of the process you can choose which course of action can be more useful for a particular case in the business
Business debt may be handled in a variety of ways. In order to achieve business debt relief, a lot of businessmen prefer debt consolidation programs that allow them to get back to business while a business debt service firm communicates with their creditors. Business debt relief service providers also offer valuable help in business debt counseling and support. Credit repair, financial planning and management are also very important issues when handling business debt properly, which a lot of genuine business debt service firms can do.
- Which methods can help to achieve business debt relief? -
After finding yourself and your business in debt, and your financial future is looking rather dim, you need to start taking care of your finances and figuring out methods to achieve business debt relief. It can be difficult to find a way out of debt for a business, but it is possible to reduce the debt and get your business on the path to a better financial future. The following are a few debt reduction tips that can help you take control and reduce the amount of debt that your business has, and finally achieve business debt relief, as your end objective:
- Talk to creditors - Refinance your home - Debt consolidation loans - Credit counseling
If none of the aforementioned options seems to help your current financial business situation, try not to file for bankruptcy right away. There is always something to be done. Achieving business debt relief is not an easy task, even more so if your business is in buried in debt. Why avoid bankruptcy? When you file for bankruptcy, it will remain on your business's credit report for ten years. So when you are able to obtain credit, it will often be at a higher interest rate, as banks will consider your business to be at greater risk to lend to. You also might not be able to get the entire amount you asked for on credit due to your business's credit history.
Remember that while bankruptcy may be the best option for a business, check out all other avenues first before making this decision and know exactly what the consequences will be if you do file for bankruptcy.
We have different articles on interesting topics and current and former clients' experiences with our programs. Take a look at the different situations on Business Debt Relief and related topics that people can fall into and how to keep yourself a debt free person. Check these links to learn more:
http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml
http://www.commercialdebtcounseling.com/
About the Author
James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Relief and Debt Help Consultation, call toll-free 1-877-850-3328
Business debt refers to the money owed by the business to creditors and is usually higher than personal debts. The money that businesses borrow is most commonly used for the business itself, either for development, expansion or even maintenance. Business debt relief tries to soften the damage caused by the accumulated debt and interest. When borrowing money for business dealings, some creditors offer higher interest rates compared to personal loans, which makes a lot of business operators accrue huge business debts. But regaining financial stability may not be as easy as a manager could plan it. To achieve business debt relief, sometimes the business itself has to give up some assets or some percentage of the company itself.
- Why look for business debt relief? -
When a business starts taking on loans and opening lines of credit, this could result in several serious problems, such as:
- Inability to handle costs - Reduced product quality - Reduced business value - Waning trust among shareholders
Business Debt relief is the way out of accumulated debt, and the saving method for your business.
- How can business debt relief be achieved? -
Business debt relief can be achieved in a number of ways, but the most important thing to do is to specify what kind of debt the business it is. Business debt relief is a process that takes into account the current situation of the business: financial status, sales, and any other data that could show the financial standing of the business. After this is done, with the help of the process you can choose which course of action can be more useful for a particular case in the business
Business debt may be handled in a variety of ways. In order to achieve business debt relief, a lot of businessmen prefer debt consolidation programs that allow them to get back to business while a business debt service firm communicates with their creditors. Business debt relief service providers also offer valuable help in business debt counseling and support. Credit repair, financial planning and management are also very important issues when handling business debt properly, which a lot of genuine business debt service firms can do.
- Which methods can help to achieve business debt relief? -
After finding yourself and your business in debt, and your financial future is looking rather dim, you need to start taking care of your finances and figuring out methods to achieve business debt relief. It can be difficult to find a way out of debt for a business, but it is possible to reduce the debt and get your business on the path to a better financial future. The following are a few debt reduction tips that can help you take control and reduce the amount of debt that your business has, and finally achieve business debt relief, as your end objective:
- Talk to creditors - Refinance your home - Debt consolidation loans - Credit counseling
If none of the aforementioned options seems to help your current financial business situation, try not to file for bankruptcy right away. There is always something to be done. Achieving business debt relief is not an easy task, even more so if your business is in buried in debt. Why avoid bankruptcy? When you file for bankruptcy, it will remain on your business's credit report for ten years. So when you are able to obtain credit, it will often be at a higher interest rate, as banks will consider your business to be at greater risk to lend to. You also might not be able to get the entire amount you asked for on credit due to your business's credit history.
Remember that while bankruptcy may be the best option for a business, check out all other avenues first before making this decision and know exactly what the consequences will be if you do file for bankruptcy.
We have different articles on interesting topics and current and former clients' experiences with our programs. Take a look at the different situations on Business Debt Relief and related topics that people can fall into and how to keep yourself a debt free person. Check these links to learn more:
http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml
http://www.commercialdebtcounseling.com/
About the Author
James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guide business on how to manage debt and avoid bankruptcy. For Free Information on Business Debt Relief and Debt Help Consultation, call toll-free 1-877-850-3328
Blue Chips Hurt by Fund Flows and Speculation
Blue Chip companies. They are the financially strong companies the world does business with everyday. In several of our articles in the past year we have discussed the possible reasons why the investment performance of Blue Chip companies has lagged some other stock types when their underlying fundamentals -namely earnings--have done so well. Recognizing this in 2006, BusinessWeek carried a cover story about the huge divergence between the strong earnings growth of Blue Chips versus their meager stock price performance. Most likely, a large part of the explanation comes down to the most basic economic principle of supply and demand. While the supply of Blue Chips stocks has actually fallen due to corporate buybacks (discussed below) demand has fallen even more as investors have funneled capital into other less traditional, and often more speculative market areas (see chart). As we write this article, events taking place in the global markets suggest that changes may be in the works.
Institutional investors have been pouring record amounts of money into hedge funds and private equity styles that embrace small- and mid-cap securities. We're talking large sums of money: just last year private equity raised a record $404 billion, according to Private Equity Intelligence. At the same time, retail investors have gone wild for international stocks. The Investment Company Institute reports a remarkable 92% of all US equity fund inflows ($149 billion) went into international equities in 2006! The message is clear: demand for Blue Chip stocks is down, while demand for other asset classes is up, creating an opportunity for long-term investors. (Remember: buy low and sell high?).
Because of institutional and retail neglect, Blue Chip companies are experiencing a phenomenon that we have not seen in a long time: the combination of strong profits, record amounts of cash, and low valuations. Fortunately most of financially strong Blue Chip companies are taking advantage of this situation and buying back tons of stock which is building tremendous shareholder value.
Exxon Mobil saw earnings decrease by 5% in the fourth quarter but because of massive buy-backs earnings per share actual increased by 2%. BHP Billiton just announced a $10 billion buy-back which is equivalent to 9% of its market capitalization. Exxon trades for just 12x earnings while BHP is valued at a mere 10x earnings. Many other Blue Chip companies have reduced shares outstanding between 4%-9% since the bull market started, including Emerson, Aflac, Coca-Cola, Citigroup, ADP, Wal-Mart, Pepsi, American Express, and Colgate-Palmolive. Best of all, these companies are trading at their lowest earnings multiple in a decade. As an example, Pepsi's P/E valuation has fallen from 37 times to less than 20 times expected 2007 earnings while its shares outstanding has fallen from 1.7 Billion to 1.6 Billion shares since 2002. Clearly, Blue Chips offer a great value in today's market.
To this point asset flows have favored small-, mid-cap, and international stocks as we discussed above, but there are signs a transition may be afoot. Actions in the markets in the past week exhibit the high volatility that is present in speculative assets. For example, recently popular emerging market investments swooned on February 27th and again on March 1st. An actively traded emerging market ETF (exchange traded fund) that invests in emerging markets fell over 8% on the 27th.
The move to Blue Chips will likely occur when risk premiums in the market are on the rise. Risk in our economy is linked to and dependent on actions in the housing and finance sectors. We have written extensively about the dangers in the sub-prime mortgage market. This business has been melting down: several firms have recently filed for bankruptcy protection, the stocks of several large sub-prime mortgage companies have fallen more than 40%, and the sub-prime divisions of large integrated banks are in disarray. If the damage from the sub-prime mortgage business spreads into other areas of our economy, risk premiums will likely rise across all asset classes and investors may seek shelter in neglected Blue Chip stocks.
Bottom Line: Conservative investors have traditionally taken comfort in the consistent growth of Blue Chip stocks but today get the added benefit of low valuation.
James G. Tillar, CFA
To read more visit Tillar-Wenstrup Advisors on the web: www.twadvisors.com or send them an email at: info@twadvisors.com
Tillar-Wenstrup Advisors, LLC, may have ownership in stocks mentioned in the article above. There can be no guarantee of investment success made by Tillar-Wenstrup Advisors, LLC relative to these selections.
About the Author
James Tillar is a Principal with Tillar-Wenstrup Advisors, LLC, a registered investment advisor located in Dayton, Ohio.
Institutional investors have been pouring record amounts of money into hedge funds and private equity styles that embrace small- and mid-cap securities. We're talking large sums of money: just last year private equity raised a record $404 billion, according to Private Equity Intelligence. At the same time, retail investors have gone wild for international stocks. The Investment Company Institute reports a remarkable 92% of all US equity fund inflows ($149 billion) went into international equities in 2006! The message is clear: demand for Blue Chip stocks is down, while demand for other asset classes is up, creating an opportunity for long-term investors. (Remember: buy low and sell high?).
Because of institutional and retail neglect, Blue Chip companies are experiencing a phenomenon that we have not seen in a long time: the combination of strong profits, record amounts of cash, and low valuations. Fortunately most of financially strong Blue Chip companies are taking advantage of this situation and buying back tons of stock which is building tremendous shareholder value.
Exxon Mobil saw earnings decrease by 5% in the fourth quarter but because of massive buy-backs earnings per share actual increased by 2%. BHP Billiton just announced a $10 billion buy-back which is equivalent to 9% of its market capitalization. Exxon trades for just 12x earnings while BHP is valued at a mere 10x earnings. Many other Blue Chip companies have reduced shares outstanding between 4%-9% since the bull market started, including Emerson, Aflac, Coca-Cola, Citigroup, ADP, Wal-Mart, Pepsi, American Express, and Colgate-Palmolive. Best of all, these companies are trading at their lowest earnings multiple in a decade. As an example, Pepsi's P/E valuation has fallen from 37 times to less than 20 times expected 2007 earnings while its shares outstanding has fallen from 1.7 Billion to 1.6 Billion shares since 2002. Clearly, Blue Chips offer a great value in today's market.
To this point asset flows have favored small-, mid-cap, and international stocks as we discussed above, but there are signs a transition may be afoot. Actions in the markets in the past week exhibit the high volatility that is present in speculative assets. For example, recently popular emerging market investments swooned on February 27th and again on March 1st. An actively traded emerging market ETF (exchange traded fund) that invests in emerging markets fell over 8% on the 27th.
The move to Blue Chips will likely occur when risk premiums in the market are on the rise. Risk in our economy is linked to and dependent on actions in the housing and finance sectors. We have written extensively about the dangers in the sub-prime mortgage market. This business has been melting down: several firms have recently filed for bankruptcy protection, the stocks of several large sub-prime mortgage companies have fallen more than 40%, and the sub-prime divisions of large integrated banks are in disarray. If the damage from the sub-prime mortgage business spreads into other areas of our economy, risk premiums will likely rise across all asset classes and investors may seek shelter in neglected Blue Chip stocks.
Bottom Line: Conservative investors have traditionally taken comfort in the consistent growth of Blue Chip stocks but today get the added benefit of low valuation.
James G. Tillar, CFA
To read more visit Tillar-Wenstrup Advisors on the web: www.twadvisors.com or send them an email at: info@twadvisors.com
Tillar-Wenstrup Advisors, LLC, may have ownership in stocks mentioned in the article above. There can be no guarantee of investment success made by Tillar-Wenstrup Advisors, LLC relative to these selections.
About the Author
James Tillar is a Principal with Tillar-Wenstrup Advisors, LLC, a registered investment advisor located in Dayton, Ohio.
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