How Bankruptcies Affect Individuals
By Brian Krassenstein
A sad consequence of the current worldwide economic downturn is that more and more people are turning to bankruptcy as a way out of their financial difficulties. And if it wasn't for the social stigma of other people knowing about it, it`s likely that the figures for bankruptcies would be far higher than they already are. So, what does bankruptcy involve, and what are just some of the implications for individuals?
If a bankruptcy order has been made, it is advertised as an official notice in The London Gazette, and possibly-not always though-in a local newspaper. Rarely, it`s even advertised in one of the national newspapers. Bankruptcy allows a debtor to be freed from overwhelming debts so that a fresh start can be made, subject to some restrictions. Also, it ensures a person`s assets are shared out fairly among his creditors. Individuals, as well as businesses can go bankrupt. A debtor can apply for bankruptcy himself, which is voluntary bankruptcy, or involuntarily when the creditor applies to make the debtor bankrupt (subject to a minimum debt of £750). There are fees involved with going bankrupt, such as a fee to the County Court of £150, plus £345 for the Official Receiver`s work. In certain circumstances the £150 can be waived.
Although assets can be sold off to pay creditors, certain items such as equipment needed for work, and household items such as furniture and bedding are left alone. Bankruptcy normally lasts for one year. After this time, a person is 'discharged.' Restrictions as far as employment is concerned covers such jobs as a company director, charted accountant, lawyer, Justice of the peace, member of parliament, and a few more besides. None of these positions are allowed for those who are bankrupt. In addition a bankrupt can`t trade in any business under any other name unless he informs all persons concerned of the bankruptcy.
A bankrupt can`t obtain credit of £500 or more from any person without first disclosing the fact that he is bankrupt. The Official Receiver can look at a person`s income and decide if payments should be made to his creditors. He takes in to account allowable expenses as well as income. An 'income payments agreement' may then be made up by the Official Receiver so that fixed monthly installments from a bankrupt`s income is paid to creditors for three years. Although the bankruptcy order itself is for 12 months, sometimes it will last for a shorter period, other times a longer period lasting several more years if the debtor doesn't cooperate with the Official Receiver.
Check out the links for more information related to GPT Programs and Personal Finance forum.
=====================================
Saving Money - Change Your Spending Mind Set - Change Your Life
By Linda Holmes
Is saving money in your day to day life a priority for you? Do you get excited over a deal, a sale or a bargain? Does the thought of shopping give you a warm feeling?
What if you found out that a deal, a sale or even a bargain is not saving you money? What if you were to change your entire mind set about spending and saving? Most of us have bought into the hype that, if you bought something on sale, you "saved" money. In reality if you spent $80.00 on an item that was originally $100.00, you didn't "save" $20.00 - you spent $80.00. Further, if you did make that purchase and supposedly saved $20.00, did you immediately put that money into a savings account? If you didn't put it in savings, did you really save it?
The marketing industry shouts all the time, "Save, save, save!" However if you really look closely at what you are doing, you aren't saving by seeking out the "Best Deal Ever", the "Biggest Sale Of The Season", or the "Bargain Of A Lifetime". Indeed you are not saving at all, you are spending. The problem is you have been bombarded with the hype for so long, somewhere along the way you started believing it.
While it is true that if you were planning to purchase an item to begin with, the best option is to find the lowest price with a reputable company that offers a good warrantee. The problem lies in making purchases not because you were intending to buy it anyway, but because the store convinced you that you would never be able to buy it at this price again. This is where impulse shopping starts, and that doesn't save you money, it costs you money.
So how do we become convinced to make purchases so easily? The marketing industry has spent millions of dollars figuring out how the human psyche works. They know our weaknesses, our buttons and how to push them. They even know what colors trigger our spending sprees, and they aren't afraid to use them.
Here is a great example of working on the human psyche. If you have ever been to a gambling casino, you know there is a lot of noise from slot machine bells. Do you think every time those bells go off someone is winning money? They are not. The weird thing is that usually they just lost some money. The way it works is a person puts say $10.00 into a slot machine. They wager $5.00 on a single bet. They hit a series that pays $3.00 and the slot machine goes into ringing, flashing light mode. But the person just lost $2.00, they didn't win anything. Does all this hype make person feel like they just lost money? No, instead it makes them feel like they just hit a winning combination. The retailers use the same tactics.
So how can you avoid buying into the marketing blitz?
First examine your needs vs your wants. Give purchases the 24 hour test. If you feel you really want to buy something, wait 24 hours and see if you still feel the same way.
Look at a purchase as money spent not money saved. Money saved is the amount you are putting into a savings account.
Don't buy into the media mania. Recognize it for what it is, instead taking the ads as truth. Change the way you think about advertising. Analyze ads and see what tricks and gimmicks they are using to get you to buy.
If you still feel the need to make a purchase, find the best price. Don't be afraid to barter for anything you really want to purchase.
If you feel warm and fuzzy by spending, think how warmer and fuzzier you will feel with a savings account that can cover you in emergencies.
Find more thrifty living tips and ideas at http://www.Thrifty-Living-Tips.com
Or come and follow us at http://twitter.com/ThriftyLinda
=======================================
Family Budget - Get Back to Budgeting Basics
By Lyn Bell
The fundamentals of the family budget appear to have been largely forgotten in the consumer spend up over the last 15 years or so. During this period most of us were spending 110% of our income -- in effect using our mortgages as an ATM. Reality has hit with the recession and it's time to get back to budgeting basics.
A family budget is basically a list of your proposed expenses and expected income. The objective is to make sure that your expenses or outgoings are lower than your income.
It is important to include all family members in the process when you complete your budget. The kids will learn a basic financial skill and together you can work out ways to reduce expenses. Make it a fun exercise by seeing who comes up with the best ideas. Making your budget a family affair allows each family member the chance to take responsibility for helping achieve goals to reduce expenses.
While each family's budget will be different the purpose remains the same.
• Plan for present and future expenses.
• Prepare for the unexpected.
When setting your family budget you should allow for:
• Emergency funds -- a good guide is to build towards three months worth of income.
• Invest for your future -- often referred to as "pay yourself first".
• Monthly bills.
• Annual bills and not just the ones that get paid each month.
• Saving for specific goals such as education requirements and holidays.
• Entertainment expenses -- be realistic and allow yourself something otherwise your budget is not going to work, but don't go over board.
• Clothing. While we may not spend on clothing every month, when we do the costs can be quite high so allow something each month.
• Charity and donations if this is important to you.
• Savings for Christmas and birthday gifts -- after all they come along each year so you shouldn't be surprised when the occasion arises.
Once you have your family budget down on paper or on your computer you will have a better idea of how you are financially. Everything will become clearer and you will know what action you need to take to make your family budget work for you. It may be that you need to reduce some spending areas or find ways of increasing income. At least you will know what the problems are and what you need to do to fix them.
Review your family budget regularly as it will save you a lot of heartache and will take the worry out of wondering how you will cope. Get back to budgeting basics and plan for your future.
As a Certified Financial Planner Lyn has helped many clients achieve their financial goals. She invites you to receive a free report to help reduce your monthly expenses: Ways to Cut Your Grocery Bill
By Brian Krassenstein
A sad consequence of the current worldwide economic downturn is that more and more people are turning to bankruptcy as a way out of their financial difficulties. And if it wasn't for the social stigma of other people knowing about it, it`s likely that the figures for bankruptcies would be far higher than they already are. So, what does bankruptcy involve, and what are just some of the implications for individuals?
If a bankruptcy order has been made, it is advertised as an official notice in The London Gazette, and possibly-not always though-in a local newspaper. Rarely, it`s even advertised in one of the national newspapers. Bankruptcy allows a debtor to be freed from overwhelming debts so that a fresh start can be made, subject to some restrictions. Also, it ensures a person`s assets are shared out fairly among his creditors. Individuals, as well as businesses can go bankrupt. A debtor can apply for bankruptcy himself, which is voluntary bankruptcy, or involuntarily when the creditor applies to make the debtor bankrupt (subject to a minimum debt of £750). There are fees involved with going bankrupt, such as a fee to the County Court of £150, plus £345 for the Official Receiver`s work. In certain circumstances the £150 can be waived.
Although assets can be sold off to pay creditors, certain items such as equipment needed for work, and household items such as furniture and bedding are left alone. Bankruptcy normally lasts for one year. After this time, a person is 'discharged.' Restrictions as far as employment is concerned covers such jobs as a company director, charted accountant, lawyer, Justice of the peace, member of parliament, and a few more besides. None of these positions are allowed for those who are bankrupt. In addition a bankrupt can`t trade in any business under any other name unless he informs all persons concerned of the bankruptcy.
A bankrupt can`t obtain credit of £500 or more from any person without first disclosing the fact that he is bankrupt. The Official Receiver can look at a person`s income and decide if payments should be made to his creditors. He takes in to account allowable expenses as well as income. An 'income payments agreement' may then be made up by the Official Receiver so that fixed monthly installments from a bankrupt`s income is paid to creditors for three years. Although the bankruptcy order itself is for 12 months, sometimes it will last for a shorter period, other times a longer period lasting several more years if the debtor doesn't cooperate with the Official Receiver.
Check out the links for more information related to GPT Programs and Personal Finance forum.
=====================================
Saving Money - Change Your Spending Mind Set - Change Your Life
By Linda Holmes
Is saving money in your day to day life a priority for you? Do you get excited over a deal, a sale or a bargain? Does the thought of shopping give you a warm feeling?
What if you found out that a deal, a sale or even a bargain is not saving you money? What if you were to change your entire mind set about spending and saving? Most of us have bought into the hype that, if you bought something on sale, you "saved" money. In reality if you spent $80.00 on an item that was originally $100.00, you didn't "save" $20.00 - you spent $80.00. Further, if you did make that purchase and supposedly saved $20.00, did you immediately put that money into a savings account? If you didn't put it in savings, did you really save it?
The marketing industry shouts all the time, "Save, save, save!" However if you really look closely at what you are doing, you aren't saving by seeking out the "Best Deal Ever", the "Biggest Sale Of The Season", or the "Bargain Of A Lifetime". Indeed you are not saving at all, you are spending. The problem is you have been bombarded with the hype for so long, somewhere along the way you started believing it.
While it is true that if you were planning to purchase an item to begin with, the best option is to find the lowest price with a reputable company that offers a good warrantee. The problem lies in making purchases not because you were intending to buy it anyway, but because the store convinced you that you would never be able to buy it at this price again. This is where impulse shopping starts, and that doesn't save you money, it costs you money.
So how do we become convinced to make purchases so easily? The marketing industry has spent millions of dollars figuring out how the human psyche works. They know our weaknesses, our buttons and how to push them. They even know what colors trigger our spending sprees, and they aren't afraid to use them.
Here is a great example of working on the human psyche. If you have ever been to a gambling casino, you know there is a lot of noise from slot machine bells. Do you think every time those bells go off someone is winning money? They are not. The weird thing is that usually they just lost some money. The way it works is a person puts say $10.00 into a slot machine. They wager $5.00 on a single bet. They hit a series that pays $3.00 and the slot machine goes into ringing, flashing light mode. But the person just lost $2.00, they didn't win anything. Does all this hype make person feel like they just lost money? No, instead it makes them feel like they just hit a winning combination. The retailers use the same tactics.
So how can you avoid buying into the marketing blitz?
First examine your needs vs your wants. Give purchases the 24 hour test. If you feel you really want to buy something, wait 24 hours and see if you still feel the same way.
Look at a purchase as money spent not money saved. Money saved is the amount you are putting into a savings account.
Don't buy into the media mania. Recognize it for what it is, instead taking the ads as truth. Change the way you think about advertising. Analyze ads and see what tricks and gimmicks they are using to get you to buy.
If you still feel the need to make a purchase, find the best price. Don't be afraid to barter for anything you really want to purchase.
If you feel warm and fuzzy by spending, think how warmer and fuzzier you will feel with a savings account that can cover you in emergencies.
Find more thrifty living tips and ideas at http://www.Thrifty-Living-Tips.com
Or come and follow us at http://twitter.com/ThriftyLinda
=======================================
Family Budget - Get Back to Budgeting Basics
By Lyn Bell
The fundamentals of the family budget appear to have been largely forgotten in the consumer spend up over the last 15 years or so. During this period most of us were spending 110% of our income -- in effect using our mortgages as an ATM. Reality has hit with the recession and it's time to get back to budgeting basics.
A family budget is basically a list of your proposed expenses and expected income. The objective is to make sure that your expenses or outgoings are lower than your income.
It is important to include all family members in the process when you complete your budget. The kids will learn a basic financial skill and together you can work out ways to reduce expenses. Make it a fun exercise by seeing who comes up with the best ideas. Making your budget a family affair allows each family member the chance to take responsibility for helping achieve goals to reduce expenses.
While each family's budget will be different the purpose remains the same.
• Plan for present and future expenses.
• Prepare for the unexpected.
When setting your family budget you should allow for:
• Emergency funds -- a good guide is to build towards three months worth of income.
• Invest for your future -- often referred to as "pay yourself first".
• Monthly bills.
• Annual bills and not just the ones that get paid each month.
• Saving for specific goals such as education requirements and holidays.
• Entertainment expenses -- be realistic and allow yourself something otherwise your budget is not going to work, but don't go over board.
• Clothing. While we may not spend on clothing every month, when we do the costs can be quite high so allow something each month.
• Charity and donations if this is important to you.
• Savings for Christmas and birthday gifts -- after all they come along each year so you shouldn't be surprised when the occasion arises.
Once you have your family budget down on paper or on your computer you will have a better idea of how you are financially. Everything will become clearer and you will know what action you need to take to make your family budget work for you. It may be that you need to reduce some spending areas or find ways of increasing income. At least you will know what the problems are and what you need to do to fix them.
Review your family budget regularly as it will save you a lot of heartache and will take the worry out of wondering how you will cope. Get back to budgeting basics and plan for your future.
As a Certified Financial Planner Lyn has helped many clients achieve their financial goals. She invites you to receive a free report to help reduce your monthly expenses: Ways to Cut Your Grocery Bill
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