Wrong Tern Finances

Debt management fees can vary vastly from one company to another. Knowing what to look for and ask when seeking help through debt management will leave you better off by not making the mistake of working with an unscrupulous agency that charges excessive upfront fees or can’t disclose or won’t disclose why they have structured their fees as they have.

Many debt reduction agencies operate as a non profit organization so why are they charging fees? As a non profit organization there still needs to be a form of income that helps offset the expenses of the particular agency. This is usually accomplished through a nominal monthly fee that an agency charges to their clients. Several states have put a cap on the maximum fee that may be charged in an individual’s certain state of residence. This prevents an agency from abusing their fee structure. Not all debt reduction companies operate as a non-profit company but they are still held to the same standards as far as being licensed to offer debt management services in several states. Find out what your state requires from the debt management provider you are looking into. Are they compliant?

Debt management providers usually charge what is called a set up fee. This is to help offset the cost of getting the client enrolled onto their debt management plan. This process can be time consuming for the agency therefore it is reasonable to expect a nominal charge for that service. However be wary of companies that charge high upfront fees. Typically anything above $60 should be a red flag. Some agencies have been known to charge several hundreds of dollars as a start up fees. What will typically happen in that scenario is the debt management provider will actually keep the first payment you make to them as their fee. Watch out for this as it makes the consumer more past due with their accounts and is an unnecessary fee that usually only result in the client being further in debt.

Make sure to ask if your agency follows state regulations as far as what they charge for their monthly fees. Also ask if they send out the first payment to your creditors. There are several companies that offer a good debt management service at a reasonable cost but there are those that take advantage of their clients. If you are being charge a high monthly amount I recommend shopping around for another debt management provider that may be able to do the same if not better job for you at a lower cost.

By: Rick Munster

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Are you looking to start to make money online but want to learn how to make money online safely? There are so many people who are interested to get started but are simply too scared of the risks that they hear are involved in making money online. The truth is that there are risks in anything you do in life but you have to avoid these risks and focus on the rewards.

There are many ways of making money online and of course there are some ways that are safer than others. The only way you will be able to tell which ways are better to take is by simply dedicating time to doing research. Gathering information on each specific program or opportunity that you can get involved in is going to be very important if you want to start to make money online safely.

By gathering information you’re going to be taking educated risks because you know for a fact that the program has been around for a specific amount of time and will most likely continue to be around. Many people make the mistake of never doing research and then complain about the risks of online money making methods.

By being patient and doing things the right way you will be able to start making money online without having to worry about losing all your money or getting tricked. Just make sure to begin doing research and get in the habit of doing it. The more information you are able to gather the less risks you have to worry about when getting involved in any kind of opportunity or business online.

Another thing to keep in mind is that you do not want to always worry about the risks you are taking because this is going to drive you crazy. Just focus on the amount of income you want to make and focus on the things you have to do to achieve this amount of income.

By: Willox Perez

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TOP TEN TIPS FOR MANAGING YOUR SMALL BUSINESS FINANCES
Always work on the basis that you’ll need more than you actually do.

You often only have one chance of raising money so remember that when working out your figures. If your figures are too conservative, it could have a huge impact on the future of your business.
The bank is not the only place to get money.

Having said that, don’t go anywhere near Loan Sharks but always keep in mind that other resources can be available.

Cash Flow
If you’re having a problem with cash flow, contact all the people that it may affect,
Customers and suppliers. Try to re-negotiate term where possible but make sure that you
can afford the new payment terms. This will help to maintain trust.

Never give credit
You haven’t made a sale unless you have received the money for it! Never give credit would be a hot tip but if you do go down that route check out references from other suppliers. Also make sure that payment conditions are included in the bill of sale.

Keep the important people in the know
Banks, Inland Revenue etc will be more sympathetic if you keep them informed. Even if that means just dropping emails to people or giving them a quick ring. Keep those contacts open.

Chasing those debts
Make sure you have a procedure in place for chasing non-payers. This could be a an invoice followed by a ‘phone call and then another invoice including an admin’ charge if this is what you want to do.

Forecasting

Forecasting and estimating for your business is essential but remember that it need to be Realistic. It’s sensible to forecast monthly but if things get tight this can be done either monthly or daily if necessary.

Records

Despite being a tedious task keep a record of everything!!!! Telephone calls, receipts, orders, payments, bank statements. EVERYTHING. Track all money coming in and out of your business. Utilise one of the many software packages that are available.

banks
Even if you do not get your funding from a bank, you will still need to use one. However everybody is in the market now to get your custom so make sure you shop around for the best deal. Read all the small print so you know when any low interest rates are due to end. It does not good business sense to be loyal to any bank. Always get the best deal you can.

Negotiate, Negotiate, Negotiate
Negotiate on everything – interest rates, payment dates, minimum/maximum orders. Etc.It never hurts to ask and “if you don’t ask you don’t get!

By: Helen Dowling

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