Survive your endless Debt problems

Anyone with his common sense intact shall normally stay away from incurring a debt. But situations often drive the majority to fall for some loan program; worse, when you borrow little amounts and notice suddenly one day the accumulated volume. Still we forget one teaching of life: One must learn to live on what he earns.

  • How to manage your debts?

Firstly, you must get rid of the habit of making excuses. The credit card companies are not to blame but your own impulsiveness. Unless you get that straight, no debt management program is going to help. And of course, don’t lie to yourself regarding your spending habits if you want to set up a more realistic budget comprising:

  • Amounts payable to the credit card account exceeding the minimum. Over long run, this shall save you a great deal which would otherwise go for paying the interests.

  • An amount to push into an emergency fund weekly, which could be a savings account. It shall help you to deal with unexpected expenses; if you have to borrow money, borrow from yourself and pay back the withdrawn amount immediately after you receive some money.

  • List all of the debts you’ve incurred. The list should feature the debt with the highest interest rate at the top and the lowest at the bottom, with everything else in between. This shall help you to determine which ones are making you the pauper. Pay as much as you can the highest-rate balances while for the lower rates pay the minimum balances. It shall help you clear them off without making you feel the pressure. Also, use any extra cash to pay down existing debts.

While the above points can allay your agonies up to a great deal, to speed up the debt clearing process, you must also develop a habit to spend less. The best place to develop the habit is to avoid eating outside whenever possible, spend in cash and put a stop to premium cable-TV channels. If nothing becomes possible, then the only option remains is a debt consolidation program.

  • A complete debt management program

There are debt management programs but what we don’t understand is a home-equity loan is not to be used for paying off a credit card debt. Most of us create this mistake since the interest rates are lower than what the credit cards charge, but later on, bigger troubles may loom when legality comes into question. And of course, a complete debt management program won’t also ask you to cash your 401(k).

Instead, it shall ask you to consolidate your debts, make your credit cards retire but one (for dire emergencies) and hold on to your patience to earn big dividends in the near future.

  • Debt consolidation methods

There are lots of debt consolidation methods to suit your needs, but on a broader sense, you may divide them into secured (require a collateral against the money lent; hence attracts lower interests) and unsecured (doesn’t require the collateral; hence, interest rates are more). However, the methods, apart from the above points, are pretty similar.

It’s only a debt management company that shall provide you this service in exchange of a payment of a cumulative amount every month to the creditors. The debt management company shall then distribute this amount accordingly. However, for the commercial setups, the debt management company pays off various creditors first and then breaks up the total amount in equal parts over a certain tenure. The payment terms remain based on customized agreements. A relief from the burden of high interest rates, for sure.

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Online accounting: The latest trend

  • Online Accounting Vs Desktop accounting software

Gone are the days when accounting software packages were desktop dependent; this is the age of online bookkeeping. Despite the slow pace compared to other software, online accounting software is making the hard-to-adjust trend catch up gradually.

The primary bar is due to the technical complications online accounting poses. Add to it the wide range (and sometimes unknown) of tax laws varying over the geographical boundaries; compatibility becomes a tricky issue, giving rise to awkward experiences. To have an account, it’s vital that we know a few of them used for online bookkeeping purposes.

Online Accounting

Online Accounting

  • Why choose online Accounting

But the sad news is all these golden offers are failing to get Intuit a clean chit in the field of online accounting; it seems the developers have to rethink its resources for a better market leverage to compete against the traditional accounting software like Freshbooks, Xero and Zoho. These packages are a direct competitor to Quicken; a glance on the features like invoicing, payroll processing or expense tracking and several others shall prove well that an impressive Web 2.0 design stands as their prime forte. What are the advantages? Providing inputs hasn’t been this much a cakewalk formerly.

  • Costs and Benefits

Whether it’s for personal use or for small to medium sized businesses, accounting software vendors like Intuit and MYOB are still ruling the roost; however, their initiatives towards making the web-based accounting software packages also deserve compliments. Out of these two, Intuit, added another name to its online versions of QuickBooks; small business owners may now benefit from the Quicken Online that comes at a competitive price and a 60-day free trial version. Satisfied users can pay as little as $2.99 a month and that too without any advertisements cluttering up the software.

  • Conclusion

Talking about Freshbooks, it is a conglomeration of online invoicing features, time- as well as expense tracking along with a subscription business model resembling that of Basecamp’s. Perhaps this is the reason why 0.4 million users worldwide find it a hot favorite; if the rest of the nifty features are considered (e.g. invoices at-a-glance, Basecamp integration or an application programming interface), it’s indeed a very helpful piece.