How to Manage Stacked Debt to get it Quickly

Debt often makes our financial situation unstable. Especially if the debt has accumulated. On the one hand, this seems to be detrimental. But on the other hand, we owe also because of a need that we must immediately meet.

Nevertheless, a person who owes no need to wait until accumulates. When there is debt, it should be paid off immediately. To pay off first, someone needs to analyze, what kind of debt he has.

Debt

Debt there are two types, namely consumptive debt, and productive debt. What is often a disadvantage is consumer debt, because it is like buying goods whose value keeps falling. Example of his credit card.

Here’s how to manage debt to get paid off quickly.

Creating Checklist and Checking Debt Ratio

The first easy way is to list your own debts. Maybe this way you never do, but quite effective.

Make a list such as a lease debt, loans to family or friends and so forth. Then you check the debt ratio. If it exceeds 30 percent of revenue, it is included as consumptive debt.

After that, you try to compare between revenue and assets, then determine also the ratio. It will be useful to know the ability to pay it later. That should be less than the 50 percent ratio.

Do not Increase Debt and Prepare Budgets

If that exceeds the 30 percent ratio, then do not add more. Better prepare the budget to pay off. Try to limit your spending as much as possible.

Check back on your vacation plans, plans to buy new cars and other plans that lead to big expenses.

Cut out your spending, and set the budget out of the savings, to start paying off. It would be even better if you are looking for a new side job that can make money for you.

Assessing Owned Assets

If that already exceeds the 30 percent ratio, then you can try to assess your assets. Because it still has to be paid off. You can try to sell some assets that might help pay off.

Consider selling a vehicle, which may be a sizeable amount of money, and immediately pay off.

Intention and Discipline to Pay Off Debts

Make sure your intention and discipline in order to pay off, is maximal. That way, what you do to pay off, will run smoothly. Because it is the intention to be completely free. Manage to spend well, prioritize savings and save.

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How to Manage Business Finance Effectively

Managing business finances is very different from how personal financial management works. The management of business finance requires thoroughness. Management is also to keep you from spending too much money but still ready for all expenses.

Effective business finance management is a method to keep the company’s cash flow in order to avoid leakage. Unmanaged finances are very risky to the smooth running of business finances.

Business Finance

You can follow the following guidelines so that business funds are always controlled from time to time.

To do List in Managing Business Finances

Separate from Personal/Family Accounts with Business Accounts in Managing Business Finances

This is the first to-do list you should pay attention to. This is so that personal money is not mixed with company money.

The best solution is to open a new giro account immediately for business.

Determine The Percentage of Business Finance Management

Determining the amount of financial percentage that you will use for your business needs is the second to-do list.

Determine what percentage of money is for business operations, profit targets, business cash reserves and for business development.

Do not forget to allocate monthly expenses, including your salary. Although this is your own business, allocate your salary according to the responsibilities and figures of your needs. If you are forced to borrow business money, record it as a debt that you have to pay later.

Create a Bookkeeping to Manage Business Finances

Not enough effort you manage based on memory. There should be a complete record. Ideally, you have financial statements such as loss/profit and balance sheet. But if not yet possible at least you can create a cash flow statement.

Make a neat note to make it easier to evaluate the progress of the business.

Manage Business Finances by Reducing the Risk of Debt

As much as possible reduce the risk of your trade payables. Growing business by way of debt, it is permissible. But be careful with your debt. An additional debt repayment load in poor business financial condition will only worsen your business situation.

For that, if the income can not meet the needs of the business, reduce your debt risk.

Set aside Profit for Business Development

You are entitled to enjoy business profits, but not to ordain. You still have to set aside some profits for business development. One of the important tasks of financial management is to keep the business alive. That is by encouraging and directing investments into profitable areas.

Do not hesitate to ask for help from experts. Minimize any risks that could potentially frustrate your business.…

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