Paying Off Your Debt

31 03 2011

Whether you accumulated consumer debt, or business debt, paying off your loans or credits is important for your financial health.  Although, you may fall into hard times and money is short, you still need to prioritize your bills.  Below are a few steps in getting organized and prepared to pay off debts.

  1. Create a list of what you owe.  Put a list of all your debts and bills in order of the balance owed.  Then prioritize your repayments by importance and the interest rate accumulating on the debt.  You should pay down the highest interest rate first.
  2. Eliminate Credit Cards.  Pay off your credit cards and then either cancel the account or use it responsibly.  Do not charge more than you can afford.
  3. Make a spending plan.  Track the amount of money that is coming in and how much you are spending.  Make sacrifices by giving up a luxury or two in order to pay off more of your debt.
  4. Pay more than the minimum.  By paying more than the minimum required each month, you will pay off your debts quicker and in return you will save money on interest that is accumulating on outstanding debt.
  5. Before declaring bankruptcy , borrow against your 401K, home equity, or life insurance, but be careful because that must be repaid too.
  6. Renegotiate terms with your creditors.  Let them know that if you are unable to work out a lower payment plan, or receive a lower interest rate, you will have to file for bankruptcy.  Most creditors will not want to experience a total loss on the debts owed to them.
  7. If overspending is a continuous problem get help.  It can be a difficult habit to kick, but it is important to have control of your spending to stay out of financial trouble.

Remember, it is important to be responsible and pay off your debt in order to save your credit score.  A low credit score can result in a world of trouble if you ever need a car or business loan, or want to take out a mortgage to purchase a house.

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Seven Ways to Stand Out At Work

14 01 2011

1. Control your image. This not only includes your clothing style but your self image as well. You should always dress appropriately for your job. You should have self confidence in the work you are doing and believe that you can accomplish the job at hand.

2. Communicate Effectively. Listen actively to understand what you are being told. When you are speaking, speak clearly. Avoid negativity and pay attention to yours and others body language. Be sure to show interest.

3. Improve your leadership skills. Motivate others by giving reinforcement, teach others, give enthusiasm, and pass up leadership in areas where someone else is better suited than you.

4. Maintain Integrity and Digression. Practice ethical behavior and use your common sense. Do not take credit for others work or pretend to know something when you don’t. Do not lie you want to be trustworthy. Be discreet about what you say and who you say it to.

5. Learn From Mistakes. It is okay to admit your faults and let it go. Do not blame others. Be rational and do not make false assumptions. If you do not know something it is okay.

6. Adjust to Change. Technology and organizational functions are constantly changing. Be flexible and accepting of change.

7. Manage your Time. Planning, prioritizing, and getting organized is a good tool to stay on track and to avoid wasting time. Do not take too long to take advantage of a good opportunity.





New Years Resolution for 2011: Five Ways to improve you collections from 2010 to 2011

14 12 2010
  1. Develop an approval process to reduce the number of problem accounts. Only extend credit to those who pass your approval process. This may include getting a background and asset check before accepting them as your customer. Once you accept a customer, you may want to consider the following:
  • Possibly getting a credit card to secure payments.  Next to cash payments, this is an effective way to ensure the customer is committed to paying you.
  • Consider setting in a Progress Payment Plan for work in progress or Contract Sales.  For example, 15% at placement of order, 40% after 60 days, etc. to lighten the tightness of cash flow and lower the payment for the customer.
  • Set a credit limit for every customer.
  1. Get Deposits. In Large orders, produce to orders, and custom orders, getting a non-refundable deposit of 10-50% of the final price ensures the customers commitment to pay.
  2. Do not wait too long before you attempt to collect. The grace period past the due date should only be about 2 business days.  After that is it time to contact your customer to let them know that you are on top of things.  The longer you wait the less chance you have of collecting. Be friendly with the first reminder.  If your customer still does not pay after you continually contact them, consider hiring a debt collection agency, and FAST!
  3. Document any contact you have with your customers.  Always start a conversation with the terms of the original agreement to let your customer know that you are going to be on top of the issue until the bill is paid.
  4. Be fair and firm.  Creating templates of scripts of what you will say is a great way to be sure that you stay calm and friendly when trying to get your customer to pay.