Are you hopelessly in debt? Have you maxed out your credit cards and feel like you have nowhere to turn to? Is your net worth now in the negative? Don’t despair. There is a way to change your current situation. You can still turn things around and make it better. Let me reveal to you 4 steps on how to get out of debt – fast!

First, plug the hole. If there is a leak in your tub no matter how much water you put in, it can never be full unless you plug the leak. In the same way, in order to get out of debt find out why you are in debt in the first place. Track down your expenses and determine where the bulk of your money has been going. Has it been going to shopping sprees, eat outs or expensive vacations? Figure out where you are putting your money and take control.

Second, cut back. You are in debt because of one simple reason: you are spending more than you earn. No matter how much you earn your expenses will always be in proportion to your income. The solution to this is to live beneath your worth. Do not overspend. Cut back on unnecessary expenses. If you have been going to an expensive gym then opt to go jogging instead. If you have been eating out 3x a week then cut back to once a week. If you enjoy going to movies every weekend chose to watch dvd’s at home. It is the little things that matter and these will make a big difference on your bottom line.

Third, cut down your credit cards. You do not need 3 or 4 credit cards. You only need one. So if you own 4 cards cut the other three in half and just leave one for emergency use. Credit cards are not evil. They are neutral. But in the hands of undisciplined people they can be dangerous. If you are not careful they can be the cause of your financial downfall. One disadvantage of using a credit card is that it makes spending much easier. Why? Because you don’t see money disappear. It’s a lot harder to hand over a thousand bucks than your credit card. That is why it is much harder to control yourself when you go shopping with your card. To minimize temptation always buy in cash.

Fourth, save at least 10 % of your income. When it comes to money it doesn’t matter how much you earn. What matters is how much you keep. So every month put away at least 10% of your salary. Never touch it. The only time when you can touch that money is when you are going to invest it. This will allow your money to grow and will provide you with the knowledge that you will never run out of money.

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If your circumstances are simple and straightforward, you can actually draw up your own will with the help of kits that are available for that purpose.  However, for most of us, things are a bit more complicated than that and using a professional to help you with the task is probably the best way of dealing with the matter of drawing up a will.  You will be able to take their expert advice on methods of tax savings to ensure that your estate benefits your loved ones in the most effective manner possible.

If you should die without making a will, your estate will automatically pass to your spouse (if you have one).  If you’re not married but do have a partner, it’s even more important to make sure that you have a will and that your partner will be provided for.

Your will also enables you to stipulate any specific funeral arrangements you would like made (whether you want to be buried and where, whether you would prefer cremation or even allowing your remains to be used for medical research).  Making these sorts of decisions can be extremely difficult for somebody who has lost a loved one and your death will be easier for them to deal with if you have left instructions ready for them.  This is just one of the ways that you will be able to help them to face an uncertain future.

If you have children under 18 years of age, you will be able to appoint guardians who would care for them in the case of the unexpected death of both parents.  This is particularly important as you will need to make sure that you choose people that you would trust to bring up your children and impart to them the values that you would have wished.  You will also need to carefully consider how these guardians would be financially compensated for bringing up your children so that they can carry on living in the manner to which they are accustomed.

In these days of so many second (and even third) marriages and complex extended families, making a will is vitally important.  By making your wishes known and planning for the future of your family, you could actually be ensuring that they need not undergo the stress of the bickering that can result if no clear instructions are left.  Dying intestate could mean that you leave behind family members who are arguing over who should get what and what sort of funeral should be arranged at a time when they could be pulling together to support each other in their time of grief.

Even though you might think that making a will is for later on in life, once you have a family and own property, making a will is vitally important. It’s actually part of the responsibility you bear when you have dependants and not something that should be avoided.

This was a guest post by Debbie on behalf of World First. For up-to-date information on buying property overseas, take a look at World First for Foreign Currency where you will find some great advice on what you should look out for before taking the plunge.

The sense of a higher moral obligation and service to your community and fellow humans may leave you inclined to argue that clockwatching is not part of your game plan, and every conceivable minute logged is used serving the needs of your client.

And, that’s all very noble. No one is accusing you of padding the bill. Besides, more and more alternatives to billable hours have been emerging since the recession as a way to cut costs.

Nevertheless, even the noblest of attorneys may not be able to resist the siren song of social networking: Facebook, Twitter, LinkedIn, Twitter, Flickr, Foursquare. The list is long, the attractions many and the temptation real.

For some, it is even more than a distraction, and fudging the logbooks is the least of a person’s troubles. An Indiana deputy attorney general was fired in February, 2011, for “tweeting” his opinion about how to handle Midwestern protestors during legislative debates, suggesting law enforcement use live ammunition to quell crowds.

Attorneys take heart, as faithful servants of the law you are not the only ones susceptible to the lure of social networking.

A North Carolina judge was reprimanded when it was discovered he “friended” an attorney involved in a child custody case brought before him, and even posted some messages about the pending litigation.

It may be easy for some professionals in the criminal justice system to shrug their shoulders at this, but rest assured the powers that be have decided that it is, indeed, a “big deal.” Social networking sites, while they may be a boon for friendships and socializing can be dangerous when mixed with work-related issues.

Most lawyers are required to take an actual class on ethics during law school, and then pass an ethics exam before admittance to the Bar. This code is established and maintained by the American Bar Association’s Center for Professional Responsibility, and they take their jobs very seriously.

Within this reading and recitation of the rules there can be little confusion as to whether dabbling in social networking sites during – or worse, while involving work is acceptable. The best course of action is to keep your logbook and your Facebook separate at all times, and remember that confidentiality always wins the day.

James Madeiros is a recent law school grad and staff writer for Criminal Justice Degree Schools, a career site providing information on criminal justice degrees and schools.

Along with working from home (or a home office) and getting to be your own boss, one of the other advantages of being an SEO consultant or website owner and administrator is that you are classed as self-employed or a sole proprietor, a freelancer or a contractor. Though this brings it’s own share of headaches when it comes to accounting and also brings its own special taxes such as Self-Employment Tax, working for yourself also brings its own fair share of things that are tax deductible when it comes to filling out that dreaded tax return. Depending on your specific type of business there are plenty of deductibles that only you and your accountant will be able to work out, so it is worth talking with your accountant as soon as your business is up and running. In the meantime however this article will take a brief look at some of the most common deductibles for people who make their living working for themselves and working online.

Firstly, no matter what specific area you work in, remember the basics when it comes to tax deductibles ; keep records of every single purchase, every service used, every transaction made. This applies especially to all of the software or services you purchase online and because your industry involves so many of these services it might be good practice to print off and file every single receipt for an online transaction as soon as you make it. Doing so will make your life a lot easier at the end of the tax year when it’s time to fill out those tax returns.

Secondly, just because your business is conducted online, doesn’t mean you shouldn’t claim for all the physical real world items that go into that business. And the first place to look for those is your office or home- office depending where you work. If, like many other self-employed online workers, you work from home then you should start by working out exactly what percentage of that home is given over to the day to day running of your business. Once you have a figure for this you can then deduct that same figure as a percentage of your rent or mortgage payment. As well as this you can also claim for any utilities that you might use for the operating of your business. Again, if you are working from home you can do this as a percentage of the overall cost. Consequently you should examine utilities such as phone or electricity, gas or water and work out how much of each you use for business.

Thirdly, remember to claim for all the physical items in your office. These will include the office furniture such as the chairs and desks, lamps and lighting, curtains and carpets. More importantly it includes the big-ticket items such as printers and monitors, hard drives and most important of all, your computer and monitors.

Next it is time to think about the online side of your business. There are all kinds of deductions available for your virtual activities. Just as you claimed for your phone and electricity, so too can you claim for your broadband bills. The website that you run, (or for many webmasters the multiple websites) can be deducted from your tax return; everything from the money spent buying the domain name to the monthly hosting bills to anything you spent on add-ons or maintenance. Even support calls to expensive helplines should be claimed back. In addition, once you’ve taken care of your regular bills, make a list of all the extras you have purchased for your company. These might include software or e-books, plugins or scripts, and even outsourced work on design or content, backlinks or money spent on virtual assistants.

Finally, claim back any money you’ve spent on advertising. This would include ad-words and ads on Facebook, adverts in trade magazines and adverts in listings such as Yellow Pages.

Follow these tips and get yourself a good accountant and you’ll quickly find that the next time you come to sort out your taxes you’ll save yourself a great deal of money.

Alex Simmonds is a blogger and journalist. He currently writes about the contracting sector covering everything from contractor mortgages to umbrella companies.

It Will Get the Creditors Off Your Back

While it is possible to file a cease and desist letter to get collection agencies to stop calling you all day long, the reality is that doing so doesn’t mean that you don’t owe the money anymore. You still owe all the money and the collection agencies, now deprived of their most potent weapon in the effort to make you pay up will likely engage in more aggressive tactics, including filing a lawsuit against you to collect damages and garnish your wages. Filing bankruptcy puts a stop to all that and lets you finally get back on your feet.

It Forces Creditors to Take a Deal

Most credit gurus will tell you that if possible, you should try to contact your creditors directly and make a deal with them to repay what you owe. The reason is simple: doing so will be less damaging in the long run for your credit. The bad news is that creditors aren’t required to take a deal. If they feel they can get more money out of you through a lawsuit, they have the right to refuse your offers and requests for a lower interest rate or other repayment deals.

Once you file for bankruptcy, they will no longer have that option. An impartial judge will instead work with you to come up with a realistic budget and, if necessary can void any and all debts that you owe to allow you to start fresh.

Tax Benefits

Here’s a little known fact about bad debt: if you owe a lot of money, your creditors may decide after a certain point that the money is simply not recoverable. If they decide that is the case, they can legally write it off as a tax deduction. However, there is a huge catch: if they write it off, then you are on the hook for income taxes on the money since the money that was written off is considered to be taxable income by the IRS. Getting your debts discharged in bankruptcy will avoid this problem, allowing you to truly start fresh.

Protect What You Have

If you can’t afford to have your wages garnished, you simply need to prove that to a bankruptcy judge (your lawyer will help you with that) and then your creditors will not be able to touch your income or your savings. However, if you don’t declare bankruptcy, then it’s all fair game. They still have to go before a judge to get an order to garnish your wages or seize your property, however without bankruptcy protection, it’s much easier for your creditors to do so.

Peace of Mind

Finally, probably the best reason for filing for bankruptcy is simply that it provides you with peace of mind. You won’t have to worry about creditors calling you, you won’t have to worry about how you’re going to pay the bills and you won’t have to worry that they’ll take your savings. You’ll then be free to begin rebuilding your financial life in peace, which is definitely a worthy reason for filing for bankruptcy.

George Gallagher is a personal finance writer and is currently helping students with their private student loan consolidation.

IVA: how it works

An IVA is an agreement with your unsecured lenders in which you’ll repay as much of your unsecured debt as you can over an agreed period of time – usually five years.

During this time, you’ll make regular monthly payments towards your debts, based on what you can afford after your other essential expenses have been covered. In return, you’ll be protected against any further action regarding your debts, as long as you keep up with the agreement.

On successful completion of your IVA, any unsecured debt you haven’t yet repaid will be written off.

There are some downsides to consider, though: in particular, your credit rating will be affected for six years after the start of the agreement, and if you’re a homeowner you may have to release equity from your home in the final year of the agreement.

How bankruptcy works

To enter into bankruptcy, you must apply at a County Court, which will assess your case. If bankruptcy is granted, you will be protected against further action for a year, after which you will usually be ‘discharged’. At this point, your debts will be written off.

If you can afford to do so, you may have to make monthly payments towards your debts for up to three years.

Like an IVA, bankruptcy will affect your credit rating for six years, and if you’re a homeowner your home may be sold to repay more of what you owe.

For more information on an IVA, click here. For more information on bankruptcies, click here.

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1. Stay at home.

Avoid going to the mall after school or at work. Unless you really have to, never step foot in a shop. And should you find yourself in one, shorten your stay and stop mindless loitering. Clearly tell yourself that you are perhaps just there to browse and NOT TO BUY. Believe me, you won’t die if you don’t buy anything at all despite what your emotions tell you. You’ll find yourself with heaps of regrets when you are unable to commit to just browsing. If you do see something you fancy, then just take note of it and do tip #4.

2. Mark your credit cards.

Credit card gives you the false sense that you can afford that wonderful kitchen strainer in your favorite color, even if you already have two back at home. Many claim that letting go of those cards are just unreasonable as they are there for emergency situations. Sure, that closing sale is an emergency. But since it is truly hard to part with them, here’s a trick to prevent you from using them.

Why not put them on a sleeve with an image of your kids, that holiday you have been longing for or of something which is actually more significant than a DVD set of your favorite show? This tip is a great visual tool that will make you think twice before taking that card off its sleeve. Or you can always put the cards on the freezer.

3. Limit your cash.

You do not have credit card you say? Good on you mate, but this does not mean that you are free from the urges of impulse buying. Acknowledging that you are likely to be prone to the desire to buy is a giant step. Better limit the cash on your wallet and set an allowance for yourself every week instead.

Place just enough cash to pay for your transportation or meals and nothing else. Seeing heaps of money within your grasp has a similar effect to credit cards. They trick you in believing that you have money to spare. So curb your impulses by limiting access to cash.

4. Delay purchase. Start the habit of jotting down items into a wish list instead of buying stuff right away. You can schedule a time to go back to the list after a fortnight or when you have saved enough for a “big” purchase. Part of combating impulse buying is controlling ourselves to stop and think. With enough time, the urge to splurge settles down. You can also try the $100 rule when you wait a day for every $100 you plan to spend. Delay, delay, delay.

Using these tricks can help you handle your finances more prudently. It will help you realize that those wonderful must-have items popping out on shop windows aren’t really necessary after all. Prioritize your purchases to avoid finding yourself in debt or with little cash for important spending. There is nothing more shameful for a shopper than the feeling of next-day regret. So wise up and arm yourself with these helpful tips the next time you shop.

Jessy is an Autralia-based mom, frugal blogger and social web entrepreneur. She blogs for HomeLoanFinder, the free eco-friendly refinance home loan comparison tool. You can also follow Jessy on Twitter as @JessyTroy

Personal insolvency is the umbrella term for any circumstance where an individual has insufficient money available to make their loan repayments as they fall due. It’s a precarious position to find oneself but has become increasingly common over recent years, with over 135,000 individual insolvencies in England and Wales during 2010 alone.
Insolvency is not the same as bankruptcy and although insolvency may lead to bankruptcy, there are usually alternatives available to those who find themselves insolvent. These include Administration Orders, Individual Voluntary Arrangements, and Debt Relief Orders.
If you’re facing insolvency it’s important to seek advice at the earliest opportunity and to pursue the most appropriate resolution before your creditors take the matter into their own hands and a solution is imposed upon you. Insolvency Practitioners are authorised to provide impartial advice on the courses of action available to you in relation to formal insolvency procedures.

How do people become insolvent?

Becoming insolvent ‘overnight’ is rare but not unheard of – household income might drop dramatically due to a lost job or reduced benefits, or an unusually large bill might stretch the budget to breaking point. But more often, insolvency creeps up over a much longer period with expenditure consistently exceeding income. In this scenario, the problem is frequently compounded by the borrower’s refusal to acknowledge their spiralling debt.

Five tips for avoiding insolvency

There are some simple steps you can take to protect yourself against the dangers of insolvency:

1. Know your figures – the first step to taking financial control is knowing how much money is coming in and how much is going out each month. Keep a close eye on how much money you are borrowing, particularly if your debts are spread across several lenders.

2. Budget accordingly – does your income exceed your expenditure? If not, take immediate action – look for opportunities to cut discretionary spending, or consider working extra hours.  If you can’t figure out how to balance your income and expenditure seek advice.

3. Anticipate financial obligations – you know that your energy bills will increase in the winter months, you know when the car’s MOT is due and you know that a family Christmas is expensive so don’t let these additional costs surprise you.

4. Put a little extra money aside – despite planning ahead, some financial hurdles may remain unforeseen. Having a rainy-day fund will help to cushion the blow.

5. Avoid taking further credit – paying due debts by taking further credit may be the only option to avoid insolvency but it will also increase your liability so should be considered a last resort. If you’re borrowing to repay debts then you’re already in a vulnerable position financially and should seek expert advice.

Avoid insolvency; act now!

If you are worried about the possibility of becoming insolvent or about debts in general, the single biggest danger is inaction. Confronting the situation early on will minimise the fallout and lead to a faster and less painful resolution.  There are a number of organisations that offer debt advice and can help you with your individual requirements.

A debt relief company can offer alternatives to bankruptcy including debt reduction, debt settlement, debt relief and debt negotiation. With the help of professionals Americans no longer have to feel bankruptcy is the only option, because it is not. With the right tools and knowledge you too can reduce and eliminate your debt, and without having that debt follow you for the next ten to twenty years. While some Americans think bankruptcy is the only answer you can be in the know, and realize you can possibly settle your debt in 18 to 60 months. Everyone’s debt is different and there is no set time frame for alleviating it, but a new car or home can be in your future if you take the right steps to eliminating your debt.

Yodlee MoneyCenter is an online management tool that has been around for a long time. It is easy to use and has a colorful dashboard with everything you need right at your fingertips. This is innovative software that can do many things including track all of your account balances and track what you spend. You can create a budget and set up alerts to let you know when something has been posted.

GnuCash

GnuCash Money Management Tool can be used for both small businesses and personal use. It tracks all of your finances including income, expenses and bank accounts. This software works on all platforms including Windows, Mac OS X and Linux. It is a powerful flexible free accounting and financial software that tracks all expenses and income in one system. It has an interface that will remind you of a checkbook register that is easy to enter information into.

Mint

Mint is a popular money management tool that is very easy to use. With this software, you can incorporate all of your accounts into the system including bank and credit card accounts. After you have it set up, the software automatically puts all transactions from your various accounts into the system. It sets up a budget and tells you when and where your money is being spent. That way you can track everything in one place to help you budget your money better.

Geezeo

Geezeo is a comprehensive online money management tool that helps a person to budget their money better. A unique feature of Geezeo is that is has a huge online community that you can join. Here you will meet people who have the same goals as you; to save money and stick to a budget. Another unusual feature is the real time public feed that lets you see what other members are doing. This online tool is more than just an accounting tool it is also has a built in support group.

Money Strands

Money Strands online management tool allows a person to track their spending and helps them set a realistic budget. This software spells out your spending habits in a variety of graphs and charts. Not only does this tool track your finances it also gives you tips on managing your money better. It tracks all of your reoccurring monthly bills in a color-coded system that shows whether the bill has been paid or still needs to be paid. This helps you to stay on track and make timely payments.

The reasoning behind online money management tools is to have all your information in one place. They are also designed to help you track your spending. Most of us don’t realize it, but we tend to spend over our means. When it is in black and white, our spending habits become a lot clearer.