Debt Management – Be Debt Free In Few Years
You must start making efforts towards managing your debts and bringing them to reduced level from where it becomes a lot easier to pay off debts. This is necessary step or you may soon be facing a financial crisis. Debts are a lot complicated issue than is thought and surely you would like to ensure a fault free debt management. It would therefore be wiser if instead of trying your hands at it, you give charge of debt management to an experienced company of the field.For debt management you can approach to a company who is experienced enough in the field of reducing debt burden. The companies offering debt management services are easily available on internet. Main job of a debt management company is to make your debt burden lighter on your shoulder.The debt management company you choose will first of all assess your debts with interest to be paid on it. You have many creditors knocking at your door and sending letters after letters for repayments. The debt management companies can relieve you off these creditors as the company takes responsibility to handle them on your behalf. But the biggest advantage of debt management is that the company negotiates to reduce your interest rates on debts with the creditors. A debt management company can even negotiate to free interest on debts. Once the interest rates are reduced, all a debt ridden person does is to make monthly payments to the debt management company which distributes the amount to your creditors. This way you are sure of making regularly towards the debt payments.Make sure that you have chosen a right debt management company. Study the debt management company profile carefully and see if its terms-conditions are suitable to you. Ensure that you pay off regularly towards clearing debts. You will see that you are out of debt in few years. Afterwards, stick to a plan of expenditure for escaping debts.
Writing A Business Plan For Success
Business plans are good for entrepreneurs starting a business who want to attract funding and established firms looking to expand into a new venture or grow their business. A business plan is a road map to the success of a business, many businesses fail every year because of improper planning. A good business plan eliminates this dilemma.Purpose: The purpose of a business plan is to help determine the course of the business; where it should be in the future and where to place the resources in order to achieve that goal. It is a document that provides future lenders and investors with proof of the entrepreneurs’ credibility. Thus, making them better candidates for funding.Length: A Business plan wording and formatting should be straight forward and simple. The business plan should not be more than 40 pages. Summary tables and business charts should be used to make the numbers easy to read and grasp. No more than two fonts should be used. Font size should be at least 11 or 12 point size. Page breaks should be used to separate pages and charts.Objectives: The main objective of a business plan is to establish revenue projections for the business and provide details on how the business will acquire the revenue.BUSINESS PLAN FORMATA) Executive SummaryThis is the first section of a business plan. This section is a brief overall summary of the business. It will define the nature of the business. The executive summary should be the last thing written. Once the rest of the components of a business plan have be written, entrepreneurs will have a clearer sense of what to write as their executive summary. The executive summary contains the following:Mission Statement- This is where the business plan states how the customer will benefit from what the business has to offer. The business plan needs to state what products and services the company will be providing.Objective – This is what entrepreneurs expect the business to accomplish, basically setting goals for the company.B) Company DescriptionIn this section, the business plan will go over a detail description of the business. The company description section contains the following:Ownership – What type of ownership will the company be: sole proprietary, partnership, or corporation.Location – This states where the business will be located. Office’s, retail shop and any other type of facility that is associated with the business should be mentioned. A website address should be listed if the business has one.Product & Services – What will the business be providing, will it be a service or a product?Funding – This is where it is stated how the small business will get funded. Funding is broken down into two parts, start-up expenses and start-up assets. Start-up expenses is legal bills, renovation and leased equipment. Start-up Assets are items that the business owners will be using for the business operation. For example, cash, purchased equipment and inventory.C) Management & Operation PlanThis section of the business plan details how the business will function on a day to day basis. It contains the following:Management – This will be a list of the personnel that will have a managerial position and the definition of their role in the business.Operation – This describe the process that it takes for the business to deliver the products or services to the consumer.D) Marketing PlanIt details the small business effort’s to sell the products or services to the customer base. A marketing plan will contain a list of the following items:Industry – This lists all the players in the market; the competition, the type of products and service that they have, the strengths that they have and how they attract customers.Potential customers – This section provides information about the individuals who will be purchasing from the business. The customer demographics will be based on the industry of the company.Advertising- It involves promoting the products or services to the customer base. It lists the different ways in which the business will do this. For example, newspaper, radio, television, magazines, direct mail, Internet or telemarketing.E) Finance PlanCash is the lifeline of a business. Without it, the business will be in jeopardy. This section will contain the following items:Profit and Loss statement – A statement that lists the business’ estimated revenue and expenses over a specific period of time.Balance sheet – Measures the business resources (assets) and obligation (liabilities) and projected balance sheets for the first three years. The first year projections will be on a monthly basis and the second and third year projections are on a quarterly basis.Cash-flow projections – The amount of cash that passes through the business. It lists income and expenses. Cash flow pays the bills.FINAL NOTESCOVER PAGE: The cover page contains the company’s name, address, telephone number, fax number, email address, website and company logo. It should also contain the name and title of the person that prepared it. It should state the name and address of the organization that will be receiving it. For example see below:The ABC Cell Phone Company1234 Main StreetMiami, Florida 56789Telephone: 000-000-0000Fax: 000-000-0000Email AddressWebsite AddressTHE COMPANY LOGOPrepared ByJohn DoeC.E.OSubmitted toMain Street BankMiami, Florida 12345
How to Get a Home Loan with Unusual Employment or Income?
Since the Covid Pandemic an increasing number of people are choosing flexible working opportunities to successfully combine both their lifestyle and their income commitments.
However, many home loan applicants have found that their bank is apprehensive towards them and it is because of their irregular working hours. They don’t seem to fit into the strict lending guidelines set out by banks and they are not seen by banks as holding down a stable employment with regular income.
A Non Conforming Lender will be familiar with the lending guidelines and credit policy requirements of a number of non bank lenders/credit providers who will accept Unusual Employment and Income with a Near Prime Loan.
What are the Common Unusual Employment and Income Types?
Below are some of the common unusual employment and income types:
PAYG (pay-as- you- go) contractors
Casual workers or Second Job
Part-time workers or on Probation
Self-employed individuals
Sub-contractors
People with other forms of income
Type 1 – PAYG Contractors
PAYG contractors are employed via an agency or directly via their employer. This form of employment is now common in a variety of fields such as:
Medical
Teaching
Engineering
IT (Information Technology)
Mining
Project Management
Construction
Government
If you are a PAYG contractor and you are looking for a home loan here is a list of things that lenders/credit providers will require you to provide:
You will be required to provide a copy of your most recent “Employment Contract”, with income details listed and you will need to provide evidence that you have had employment in the same industry and that you have a good track record in your chosen industry.
You will need to provide evidence that your employer or employment agency takes care of your income tax and superannuation contributions for you and show copies of latest pay slips.
Note: If you are not on the direct payroll of an employer or employment agency, you may be treated as being self-employed.
Type 2 – Casual Workers or Second Job
This type of employment applies to people working on a casual basis in the following industries:
Restaurants
Retail
Teaching and Tutoring
Nursing
Childcare
Trades
Drivers
Cleaners
If you are a casual employee, you will generally need to provide evidence that you have been employed at the same place or industry.
Type 3 – Part-Time Employees or on Probation
If you are employed on a part-time basis or on Probation you will find that non bank lenders/credit providers will generally require you to:
Provide evidence that you have been employed at your current employment for at least 6 months
Provide copies of a computerised pay-slip covering a minimum of two (2) pay cycles in order to confirm details of your base income and a signed letter of employment from your employer listing details of your current base-remuneration.
Type 4 – Self-Employed Individuals
You are categorised as self-employed individual when you are paid through your ABN even when you are conducting freelance work as a journalist, photographer, tour guide, etc. In such a situation, you will find that most Banks will require you to provide evidence that you have a regular income to sustain a loan. This includes providing evidence that you are a business owner or partner and you have been trading in your current business for at least 24 months.
For a Prime Bank Loan you will be required to provide copies of your most recent Personal and Business Income Tax Returns and business financial statements, reflecting two (2) years trading activity.
For a Non Prime Bank Loan you have a Low Doc Home Loan option for Self Employed Australians where you can supply a declaration of income with either:
Accountants Declaration of income
6 months of lodged BAS statements
6 months of Business Bank statements
Note: If you conduct freelance work with an employer, you may find that lenders/credit providers may require you to provide a copy of the written agreement between you and the employer that outlines your pay and conditions.
Type 5 – Sub-Contractors
Sub-contractors have specialized skills and they are generally employed by a primary contractor to provide specialized services in a variety of fields such as:
Building and Construction
Mining
Civil Engineering
IT (Information Technology).
Note: Many sub-contractors have little to no overheads and no staff and most are typically self-employed. In a sense they are similar to PAYG contractors.
Type 6 – Other Forms of Income
If you receive other forms of income and you are unsure if it is acceptable you should seek help from a Specialist Mortgage Broker. These other forms of income can include:
Centrelink payments and Pensions
Commissions and Bonuses income
Trust Distributions income
Car /Shift and other Allowances
Annuity Income from Superannuation
Director’s fees
Second Job income
Investment income (i.e. Dividends received from publicly listed companies)
Child Support Court Ordered Maintenance payments
Salary Sacrifice
Foster Care Income
Superannuation Income (Pension or Annuities)
Trust Distributions
Oversease Income
Maternity Leave
Seek Expert and Professional Advice
If you still have doubts regarding your employment status and want to obtain a Home Loan you can seek help of an experienced mortgage broker or Non Conforming Lender because they will have experience of dealing with many non bank lenders/credit providers on a regular daily basis.
Manage your Debts by Refinancing your Current Home Loan
A Debt Consolidation Home Loan can Help you take Control of your Finances
Are your debts getting out of hand and you want to take control of your finances? If you have answered yes, you should consider the possibility of refinancing your current home loan and combining your multiple debts with a debt consolidation home loan (e.g. credit cards and other personal loans) into one home loan.
How does the process of Refinancing My Home Loan to Consolidate My Debts work?
You simply consider applying for a new loan on your current property and you use this new loan to pay out your current home loan and any other debt you may have (e.g. higher interest credit cards or personal loans)
How Can I Benefit by Refinancing My Current Home Loan and Consolidating My Debts?
You too can benefit in the same way that many Australians are already benefiting by refinancing your current home loan. This will enable you to:
Lower your monthly repayments
Make only one repayment
Lower your interest rate
Reduce the amount of time it takes to pay off your home loan
Get yourself back in control of your debts much sooner than you anticipated
You will not have to experience the stress and pain of overdrawn or over the limit credit card balances
Reduce your debts (including eliminating high interest credit card debt and personal loans)
You will not have to pay the higher credit card interest rates anymore
Who can enjoy the Benefits of Refinancing?
Refinancing may benefit you even if you fit into one or more of the following categories:
Irregular income
Short-term employed or not employed long enough
Self-employed
Previously bankrupt or Part 9
Declined by another lender
Bad credit history
Existing loan arrears or defaults
What Should I Consider When I Am Applying for a Refinance Home Loan?
Make sure, the refinancing and debt consolidation process is beneficial to you. I suggest you to consider the following outcomes at the time of applying for a refinance home loan and confirm in your own mind, if the outcomes are to your benefit:
You are kept fully informed
Your repayments will be reduced – not increased
There are no hidden fees or costs
You have achieved control over all your debts
There is a real long term benefit to you
Not all lenders allow equity release to consolidate debts contact a Debt Management Mortgage Lender
So, don’t spend your money in making high monthly repayments. Take full control of your finances and contact a debt consolidation specialist who will provide you with expert advice on refinancing your current home loan to consolidate your debts.