Nine ways to get out of debts

We suggest to study next ways which, probably, will help you to finish debts:
1. Try to pay regularly more than the minimum payment
The first with what it is possible to begin struggle against debts, is to refuse habit to pay only the minimum sums on account of a debt. Payment monthly from 2 % to 3 % of your debt only aggravates your position. Besides, it what from you wanted by banks. The longer you will pay the debts, the it is more than money for percent will earn bank and the less money remains at you in a pocket.
Set for itself a problem every month to pay as much as possible.
If your minimum payment makes $100, increase it to $200 or more. Analyse the daily expenditure – and you necessarily will find money. Refrain from dinners in cafe or restaurant, take with itself meal from the house, refuse desserts etc. At each of us there are weaknesses, and you well know the.

2. Collect all debts in a heap
Attentively analyse all credit cards. Special attention give that, at which least interest rate. If you have not reached as much as possible resolved limit on this card, translate on it balance from other cards, at which highest interest rate. Many credit cards will allow you to make it. For you it will be very useful to exchange 18 %-s' rate on 12 %-s'. If your cards of such operations do not carry out, try to talk about it in your bank, there can go to you on a meeting to keep the client.
If your balance is too great to go in on one card with the least interest rate, do the minimum payments on all other cards, except one, with the highest rate. Direct all means for this card and pay it as soon as possible. As soon as the balance on it leaves on a zero, be switched to other card with the same aggressive approach. Such tactics of payment of a debt is called «a snow clod». With reduction of your debt of the sum of payments increase that forces your debts to disappear with the maximum speed.

3. Involve the savings

If you have investment or depositary accounts (and at each present Investor such account should be), take advantage of this money for debt repayment. Certainly, nobody wishes it to do, but sometimes in it there is a common sense.

Even if your debt is under 12 % annual, your investments should earn more than 18 % before payment of taxes to bring a difference to naught. We doubt that your deposits bring to you such percent. And even if bring, your money works for nothing. Pay debts and allow to the savings to grow easy.

4. Borrow on the security of the insurance

If you have insured the life and you already have a certain sum on this insurance, borrow on the security of the policy. You borrow own money. The interest rate of such credit will be much more low, than any commercial rate, and at you possibility will easy pay all debts. If you die before payment of debts, they will be blocked by your insurance which will be paid to your family.

5. Address to friends and relatives

Probably, your relatives and friends could help you with payment of debts. Who on this world loves and respects you more than your relatives? If, of course, you not about whom there is a speech in a saying "Every family has its black sheep" you have considerable chances to obtain the credit with the minimum percent. They can even forgive you the late payment (one or two). And if you wish to support good relations with them, it is better to you to discuss all terms and did and to commit them to paper. It will help to avoid недопонимания both the subsequent insults. And the most important thing – observe all obligations, differently you can remain in loneliness and forget about gifts in the birthdays.

6. Take the credit on the security of the habitation

You have a habitation for which all is paid? Or you have any valuable things, such as antiques, jewelry, securities? If yes, you can quite take the credit on the security of the property. Having gambling-debts under 20 %, your credit on the security of habitation under 12 % much more will facilitate your position.

7. Borrow at the pension scheme

If you participate in any pension scheme or you have a private pension, you can borrow to 50 % from the sum available there. Learn about it from the employer or in a pension fund. If such possibility is, take advantage of it. The interest rate of such credit will be much more low, than the credit card rate. But the most interesting that, by and large, you will pay these percent to yourselves. It also should be specified in addition, but each copeck which you will pay on account of the debt, you will pay into the account of the borrower, instead of into the account of the creditor.

8. Talk to creditors

Well, you have made all that could. Savings have ended, relatives from you have turned away, you do not have habitation, the insurance and a pension scheme. You feel yourselves completely driven into the corner, and money is not present absolutely. What to do? Really bankruptcy – it is the only thing to do from a situation?

No! There is one more possibility to try to keep the reputation. Go to creditors and tell it about the situation. Tell it that if it will not turn out to reconsider a condition of payment of a debt, at you does not remain any variants, except how to declare the bankrupt.

Ask them to give you plan of payment of a debt more accessible to you and try to convince them that you will continue to struggle and do payments. Having appeared before prospect of your bankruptcy, creditors will do the utmost to protect themselves from loss of all.

Believe to us, creditors will make impossible before will write off your debts. As lawyers speak – about all it is possible to agree. At last, to lose to you there is nothing.

There are companies which specialise on granting of the similar help by that who requires it. Try to address to them.

9. Last step – bankruptcy

If any above-named attempt has not brought any results, at you does not remain other exit, except how to declare the bankrupt. We consider that each person has a moral duty to pay the debts. But there are cases when it is simply impossible. In such situations bankruptcy can be a unique overcoming the crisis. But be ready to serious consequences.

Before taking the credit

You have decided to take the credit? Before going to bank, try to consider two following moments properly:
The first
Ask itself a question: whether it is valid to you this credit is necessary?
Payment of debts – expensive pleasure which "eats" a part of your income. It would be much more useful to invest this part that it worked on your future.
If need for the credit all the same remains, try, that its sum was as less as possible. For example, define: whether really you require purchase of the new car each two years, or the qualitative second-hand car you can quite arrange?


The second
Whether all of you have considered alternative variants? If you have cash savings, whether it will be more useful to take advantage of them? The percent which you will not earn on the savings, can be much more below what you should pay for the credit sum. Perhaps, there is a sense to postpone purchase for some months and in this time to save more money?
If you plan to "take out" money from the pension scheme (that we do not advise you to do), remember that possibilities fill up this account at you can not to be that will negatively affect your pension.
One more variant – addition of your mortgage which will have most likely lower interest rate. Or you can take advantage of every possible hypothecary credits which will allow you to take in addition regular credits for other acquisitions.
If such credits in your city exist, attentively familiarise with their conditions. If you decide to deal with the hypothecary credit, remember that you should be very cautious with regular payments as you threaten your habitation.

Addition to the hypothecary credit has one negative side – you will pay the credit longer. And after all one of golden rules of credits – the faster it you pay, the better.
You also can take the credit through the employer if such possibility is available. As a rule, similar credits have lower interest rates, especially if you work in the financial industry. Only keep in mind: it is necessary to you рефинансировать this credit if you change work.
At last, many people address to the relatives and friends. Frequently thus it is possible to obtain the interest-free credit. But what happens, if you cannot do payment? Think very well before on it to dare.
If you take a short-term loan, you also can take advantage bank  or even of a credit card with the low interest rate which it will be necessary to pay as soon as possible.

How to choose the reliable insurer?

Often enough listeners of my seminars ask - and how me to choose the reliable insurer? Agree that in this point in question reliability very much and is very important. After all the help of the insurer requires in case in a life there was a trouble. Therefore for us reliability of the company in which we are insured is extremely important. To your attention in this release of dispatch allow to present article from a hot of magazine "õ¿¡á¡ß" which will help you with a choice of the reliable insurance company.


Today in the market more than 900 insurers. But it is far not everyone opens the information on. To Contact "the coded" companies dangerously. To publicity to the insurer gives placing on own site of the general data on (the given out licences, structure of shareholders and affiliated persons, management), financial indicators, and also participation in various ratings. The financial indicators presented in a rating "ö", allow (though and not to the full) to estimate business of the insurance companies.

Stability. It is desirable, that size of actives of the insurance company, its reserves and own means showed a gain. It testifies that business of the insurer grows, and it develops. It makes sense to pay attention and to absolute values. As analysts АКГ "Financial examination" mark, "if the size of actives of the insurer is less than 200 million roubles, it is necessary to reflect on its reliability. If actives do not exceed 50 million roubles, in general it is better to it not to trust the protection".

The net profit indicator is more actual for investors, it is not so eloquent, so far as concerns reliability of the insurer. The past year has appeared for many companies not such profitable, as 2005. According to head Rosstrahnadzora Ili Lomakin-Rumjantseva, "it is connected in many respects with reduction in portfolios of the companies of financial schemes which are more profitable, rather than classical insurance".

Investments. The western insurance companies cover losses and earn to itself on a life, actively being engaged in investment activity. In Russia the investment income of many insurers does not exceed an inflation indicator. Meanwhile, as the leading expert of department of insurance of Research financial institutions of the Ministry of Finance of the Russian Federation Jury Spletuhov marks, "investment investments of insurers directly depend on a position of founders which can to demand, for example, that means settled on accounts of related bank to the detriment of profit of the insurance company. Or to put up money in long-term assets - then the company cannot quickly pay off under the obligations".

Liquidity. The factor of instant liquidity at the companies participating in a rating, fluctuates in a range from 0,1 to 105,5. However, this indicator not to the full reflects ability of the operator of the market quickly to pay off under the obligations. Such is specificity of business. According to Ili Lomakin-Rumjantseva, the company on accounts should not have many money - after all at insurers not such great volume of urgent obligations. "Surplus of money resources suggests that the company at the moment of accounting date transformed the long-term assets into means for accounts", - the head of supervising department speaks.

Level of payments. Some companies neglect the obligations: try to minimise payments or search for occasions to refusal in them. Indirectly the parity of payments and gathering can testify to it. However it makes sense to compare only similar with similar as "the fair" factor from a kind to a kind varies. It is changeable and in time. And one more remark: too high value выплатного factor testifies, as a rule, not to generosity of the company, and about possible financial problems or errors in calculation of tariffs.

Scoop blue a parachute! So those who loves the sky speak.

Financiers speak - let money pours and pours!

Economic crisis: give up gifts.

The best way to offend neighbor - do not give him a desired gift for New Year. The best way to stay a month or two without money - not to offend your neighbor. In the end, not in vain from sellers of January and February are the most miserable months: the public simply have no money left to buy anything except food.

The first rule of any man who feels the financial freedom - it is "always know how much money you will be tomorrow and a month (or three)." I have often repeated this principle for businesses (and in business consulting is the second thing, which I look): "cash flow is the king" - "the most important - is what is the source and where the money went, and in what proportion." Model life devices today thickly, and tomorrow is empty "perfectly familiar to most readers, but I sincerely do not envy people that give effect to this principle in practice. Personally, my choice (but I admit honestly: In this article I will not describe personal experience) - live smoothly, without upheavals and if she wants to please the family - to plan gifts.

Below I give examples that are applicable to Western life, but which, I believe, are applicable to life in any developed country:

-         If you have a pet, do not rush to give him a gift this holiday season. If you think this advice marasmus, believe that there are people whom I had just insulted. Animals love you regardless of the gifts: all such gifts are made by you for you the same. If you believe that your pet stopped loving you because of what you do not make him gifts, try to feed him and see the progress.

-         Children should not suffer - give them something. Adults may suffer. There is the notion of "mutual appreciation", requiring tear to shreds, but to give a gift.

-         Do not buy gifts on credit. The worst that can only buy food on credit (with no plans to repay debt). If you are forced to resort to credit, to please others, think twice (preferably three times, and it is better to freeze the credit card): it really worth it?

Three simple rules of personal finance.

Basic principles of personal financial planning are quite simple.  Success comes only with the establishment of habits. Man creates habits and habits create the future. If you do not  create good habits, then the bad will arise unconsciously.

Some aspects of personal finance can be quite complex. For example, planning a will or trust organization, the formation of an international portfolio of securities, taking into account taxes or the establishment of a charitable foundation.

There is still a problem the first step when it is difficult to take responsibility to overcome themselves. At this point, remember that there is a lot of money that all of these personal finance is very complicated, that no one with whom to consult. However, the basic principles of personal financial planning are quite simple.

Three simple rules of personal finance can be formulated as follows:

1. Spend less than to earn

You get 3000 per month? Take 2500, and 500 set aside, saving. Even if this is a one-time parish. Got a little work a certain amount, do not spend all aside part. Not the most difficult principle.

2. Do not take credit

Credit - a financial instrument that requires careful when choosing, be it mortgage, consumer and other types or just a credit card. Do not spend money with a credit card to buy things on the benefits that you regret that you do not even need. Credit - a well-planned exit from a difficult situation.

3. Save and invest money

Let it be simply a bank account, participation in the program of co-financing of their pensions, an agreement with non-state pension fund or mutual fund investments. Here the main focus is to them not to spend. A unspent they should be put into action.

Executive Summary

The OECD countries experienced a major financial crisis that led to the deepest recession since the Great Depression. Governments and central banks swiftly took unprecedented steps to save the financial system, and a wide range of policy measures were undertaken that overall seem to have set the stage for a gradual recovery.

As the recovery takes hold, the swift actions that were taken in response to the crisis will need to be reassessed as to whether they help support sustainable growth going forward. In last year’s report, principles were enounced for policies that could support demand in the short term, while at the same time help to ensure robust long-term growth. The lead chapter (“Responding to the Crisis”, Chapter 1) examines in detail the actual policy responses in all OECD countries. Three main conclusions stand out:

●     OECD countries have so far avoided the major structural policy mistakes of some past crises, such as imposing severe protectionist measures or highly damaging labour market policies like early retirement schemes. Other measures were taken that will help to contain the long-term damage of the crisis for material living standards and welfare, such as in the areas of R&D, infrastructure, labour taxes and active labour market policies.

●     Going forward, significant risks remain, however. With unemployment likely to remain high for some time, governments will face pressures to maintain or introduce labour market measures which, if entrenched, coulddurably reduce labour utilisation. Likewise, depending on the magnitude and composition of adjustment in taxes and spending, the much-needed consolidation of public finances could affect long-term income levels.

●     The urgency of structural reform has in general been reinforced by the crisis. This especially holds for the need to revamp financial regulation. Reforms are also needed in other areas, such as labour and product markets, where they could speed up the recovery, help consolidate public finances in a way that protects long-term growth and, in some cases, contribute to reducing current account imbalances.

Against the background of a strong need for reform in the wake of the crisis, the overview of reforms (Chapter 2) assesses the progress that each country has made over the past five years in a broad range of structural policy areas where government action could boost long-term growth. The country notes (Chapter 3) in this year’s edition also highlight those priorities that seem most urgent to address during the recovery. Despite the depth and extended nature of the crisis, differences in per capita GDP have not changed much, and can to a large extent be explained by structural policy factors that are the basis on which structural policy priorities are identified in Going for Growth. The main reformpatterns that emerge from the stocktaking exercise carried out over the period 2005-2009 are the following :

● OECD countries have followed up on Going for Growth policy priorities since 2005. Two-thirds of them took some legislative action in at least one of their priority areas each year.

●     At the same time, reforms have been typically incremental rather than radical in nature, and most have not been ambitious enough to warrant a removal of corresponding Going for Growth priorities. Furthermore, the pace of structural reform seems to have slowed recently.

●     There is broad variation among the countries that have been most active in structural reform since 2005 in terms of geography, size and income levels, although a majority are small OECD economies.

●     Experience with past reforms reviewed in this chapter confirms that they are easier to undertake where they entail only benefits and little or no short-term cost, and harder to carry out where they may hurt the short-term interests of specific groups, such as incumbent investors, farmers or labour market “insiders”.

This issue of Going for Growth also contains special topical chapters on intergenerational social mobility, prudential regulation and competition in banking, as well as an application of the Going for Growth methodology to Brazil, China, India, Indonesia and South Africa.

Bankruptcy Codes And You

The thought of going bankrupt is generally something that most people don't consciously consider doing. However, the reality of today is that more and more people are not only considering bankruptcy; they are actively seeking it. Various forms of bankruptcy such as chapter 13 and chapter 11 are being exercised by people throughout the country today.

Congress was the body of lawmakers that decided that the U.S. bankruptcy laws were in need of uniformity and as such they implemented Federal bankruptcy laws that the states are obligated to conform to. Although each state can have its own set of bankruptcy laws there are some basic statutes mandated by the U.S. government that all must follow. These bankruptcy codes have been put in place to help people relieve themselves from financial burden and to cease engaging in financial self destruction.

At the time of this writing there are currently four different chapters to the bankruptcy code. For example, you may be familiar with the bankruptcy term Chapter 7 bankruptcy. The chapter 7 part is the section of code or the statutes that address the rules and regulations of Chapter 7 bankruptcy.

With these various chapters of bankruptcy, are explanations of how the various laws are set up to deal with the filing procedures and how the debt is relieved or negotiated down. There are also provisions regulating the behavior of the creditors themselves as it pertains to contacting and collection attempts by the creditor.

The individual states can have and pass their own statutes concerning bankruptcy laws or codes. However, any statue that a state may be considering for law must still work within the framework of the Federal bankruptcy codes.

So, even though the individual states cannot change the intent of the Federal bankruptcy laws, each state can however, interpret how the claims must be filed and how the claims are acted upon.

If you've not considered the dynamic nature of statutes, you would be well advised to. Bankruptcy statutes (just like all statutes)are dynamic in nature. They can and do change at the local (and Federal level)based on the lawmakers either adding amendments to the current statutes or adding completely new sections to the chapters themselves. Because of this it would be a good idea for anyone considering taking the bankruptcy route to consult with the appropriate counsel.

Any change to the base bankruptcy laws of the U.S. will be originated from Congress itself. An example of such came with the filing requirements of a Chapter 7 bankruptcy. This particular changed effected the primary rules for the filing in that it added additional burden of proof on the person filing to have met the specific criteria and as such would have the right to file for bankruptcy.

With this change, the person seeking relief from the bankruptcy courts will only be approved for filing once they have completed a court approved financial and bankruptcy session. With the ever growing number of people seeking relief from debt via the bankruptcy system, this amendment was added to help ensure that the person filing was truly in a financial dead end and not someone who had just incurred a great deal of debt with no intention of paying it off.

The administrative account for the General director

The administrative account – system of gathering and grouping of the financial and not financial information on which basis managers make decisions for achievement of the purposes of the organisation (definition from the book of Charlza Horngrena, George Fostera and Shrikanta Datara «the Administrative account»).

The conventional guru in the field of the administrative account Kolin Druri in the book «the Administrative account for business decisions» defines the administrative account as granting to heads of the organisation «information on which basis they can обоснованно make decisions and raise efficiency and productivity of current operations. The information under the administrative account allows to measure economic indicators of operational structures of the organisation operating децентрализованно, such as its separate divisions, цехи and departments. The administrative reporting is to the full facultative, that is such information prepares only in the event that it is supposed that benefits from it will be above expenses on its preparation».

According to Svetlana Nikolaevoj and Sergey Shebeka, authors of the book «the Administrative account. Legends and myths», the administrative account is «the control system of the organisation assuming realisation of administrative functions in the relation:

Sets of the processes making activity of the organisation;
Structural units of the organisation participating in processes;
Resources used in processes;
The indicators reflecting the characteristics of all other categories of objects of management, for achievement flowing and organisation strategic targets ».
Long time in practice of the Russian companies the administrative account was perceived as «the real account objectively reflecting operations of the company» (see, in particular, article: Божко P.Osobennosti of the administrative account at the Russian enterprises//the Financial director. 2003. №2). It has been connected by that else about five years ago the majority of the domestic companies was used by various methods of minimisation of the taxation. In these purposes the fictitious organisations were created, schemes of the tax planning were applied, some operations were not fixed in the official account. And that proprietors of business and heads of the enterprises saw all picture of business, the administrative account was conducted. As a rule, in its basis the principles similar with established for book keeping lay, and more advanced companies for a basis took МСФО. Last variant most visually shows the contradiction in understanding of the administrative account in Russia and abroad as МСФО is by definition the financial account which, despite the transparency, does not provide management of the company by all necessary for acceptance of administrative decisions by the information. Recently owing to change in Russia tax climate and development of practice of the administrative account more and more the domestic companies apply the administrative account in its classical understanding.