by admin | Uncategorized
When it comes to budgeting and managing your money, it is important to make sure that you keep track of everything that goes along with, it. From the different transactions you make to various business expenditures that you decide upon day in and day out, it must be accompanied by a billing statement or a purchase order receipt or any evidence of your recent expenses. It is important that you always have that evidence to serve as a back-up in case of emergency situations that require the presentation of an official receipt. Having an official copy of expenditures made can also give you a way of managing your finances and resources by keeping track of their monthly uses, therefore enabling you to prepare a budget plan for the future coming months being able to lessen a number of expenditures along with it.
How to Budget?
Carefully planning and implementing a living realistic budget can prove to be one of the most the effective tools in your personal financial management plan. See below for a list of ways to help you budget your money.
- Identify Your Expenses. Making sure to get a foothold of what your monthly expenses are is the primary step in building a budgeting plan. Start out by pointing out your fixed monthly costs like rent payments, credit card balance payments, and business or personal loan payments, and add them to your variable monthly costs also know as your daily-living costs including food, entertainment, utilities, and clothing expenses. You can also include the rare and infrequent expenses you make like the vehicle insurance and car repair; taxes; special events then divide them for 12 months to get the average monthly expense cost. Be sure to list all your expenses use your bill and bank statements for exact reference leaving out any gaps.
- Identify your Income. Your pay stubs will come in handy when you try to identify your tax-paid, take-home monthly income. Note that individuals who get paid every 2 weeks need to multiply the pay by 26 and dividing it by 12 to get your net monthly salary. You must include all secondary sources of your income be it commissions, a second job, or alimony in it.
- Mark the things you want to save for. By setting realistic and detailed expected monthly goals, you will be able to measure the success of your budgeting plan and be inspired to keep on moving forward with it.
- Setting the Budget. Get a total of your income and expenses, and figure out if you need to cut some of your expenses or try to get an increase in your salary making the budget plan work for you. Set up a budget plan sheet to be able to track everything you do, from your successes and your slip-ups, and be able to work around it.
Budgeting monthly expenses are a great way to take control of your financial status and your business enabling you to allocate and carefully plan out where and how you intend to make use of your expenses in a cost-effective plan that could prevent you from encountering certain financial setbacks like bankruptcy in the future.
by Ajay Oberoi | Consumer Proposal, Credit Counseling, Credit Repair
Wouldn’t it be good if all debt would just disappear? Debt can be so stressful, particularly if you’re trying to pay down your debt on a very small budget. When you do not have enough extra money, making debt payments could seem like a waste of savings, or even seem too impossible. Further, it’s also easy to get irritated when you have a big amount of debt and much of your payments go towards the interest.
Yet, you’re almost better off making even a small payment, instead of no payment at all. If you do not have any emergency fund or you’re barely scraping by and can’t even pay your existing bills, then you might need to concentrate on those concerns now. However, if you have any funds available, you must be paying off the debt. The following are ways on how to get out of debt with small payments.
SET UP AUTOMATIC DEDUCTIONS
If you got limited budgets, you might feel that small payments aren’t worth it. But, every small bit helps. Did you know that setting up an automatic deduction would stop you from falling into the trap of looking for diverse excuses not to make debt payments? Normally, automatic deductions are an excellent way to pay bills.
CREATE PAYMENT PLANS
If you like to get out of debt easily, especially with a limited budget, you need a plan. Begin by identifying how much debt you have and listing down the lenders whom you own money to. You can order your payments by which debt you believe needs to be paid off first. Then, you can identify how much you can avail to pay off every month.
Once you’ve identified how much you can pay every month, you need to determine how much of that total number will go to every loan. Paying off the high-interest loan in its entirety has lots of benefits; however, if you have a loan, which does not need payments yet, you must factor that in and perhaps pay off other loans first as well.
CHANGE SPENDING HABITS
Someway you got into debt, and there are some potential reasons. You might have debt like school loans, home mortgage and such debts are totally legitimate and necessary. Either way, you need to decide to stop spending today if you like to get out of debt faster. This denotes that even when a mortgage is a reasonable debt, you need to be proactive when it comes to paying off that certain debt and you need to be content not to go out or buy a bigger or costlier home. Regardless of whether you’re an impulse sender or careful spender, if you wish to be debt-free, then you need to select to pay the debt down rather than accruing more.
People oftentimes wonder when they must borrow money to pay off debt. If you have countless different debts, then you can consider consolidating the loans. Remember, having a limited budget should not stop you from paying off the debt you have; however if it can make it certainly tougher. These tips can help.
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
Canadian homeowners have more negotiating skills than they think when we talk about the Canada Revenue Agency. That’s until the CRA has placed your property and placed a lien on it. Utilizing your home to deal with CRA all comes down to the right timing. If you have some equity in your home and you the CRA money, here are the steps to take.
Everyone knows that tax debt could be alarming; alarming because owing to the CRA money if you cannot pay will likely result in collection activities. Further, tax debt is one of the major reasons why people get behind filing as the money to pay isn’t there and they fear that once the returns are filed, CRA is going to come searching for the money. If you are aware that you have a tax debt, do not wait until the CRA catches up with you. Remember that you can beat them and get a plan, which will effectively deal with your CRA tax debt.
What Are the Options?
In case you didn’t know yet, you more options to deal with CRA tax debt when it has not started enforcement action. A good example of this is homeowners who have tax debt. Let’s say you have or you own a home, have a tax debt, at the same time the CRA puts a lien on the home, this will greatly lessen your options if you really can’t repay them on a monthly basis given that the CRA will become a secured creditor.
The challenge here is your probabilities of being able to make the consumer proposal are extremely lessened once the CRA has taken enforcement action, secured with a lien on your home for instance. The same goes for bankruptcy. If you’re holding the bankruptcy card in your pocket or hoping that filing for bankruptcy may seem like a means to get out of the tax debt, this as well would no longer be a viable option when the CRA becomes secured on the asset such as real estate.
The Faster You Deal with CRA Tax Debt, the Better
Don’t mind problems like financial planning and enforcement action. The presence of tax debt and the CRA collection action against you can lead to damage to your relationship with your family or along with lenders like your mortgage holder or bank, embarrassment at work, and even health issues if you become stressed and have some difficulty coping with the stress.
There’s no need to put yourself through this kind of situation. You will find companies, which can help you with your financial CAR tax debt problem. Selecting the right solution for you could be easier said than done; however, but not if you are aware of your options. Collaborating with a financial consultant employed by you to represent your interest is one great way to assess and check your options and develop your plan.
Remember, dealing with your tax debt before CRA catches up with you will allow you to have relief and move forward on a new footing. Any problem with CRA debt call GTA CREDIT at 416 650 1100
by admin | Consumer Proposal, Credit Counseling, Credit Repair
Let’s face it – money can be a devil at times and a savior at others. We all are told to acknowledge the importance of adequate money management throughout our lives to avoid the problems a lack of finance brings. That’s very crucial, without a doubt. However, some people might face a time they are in dire need of money, despite the sufficient money management they thought they were conducting.
There are plenty of loans available in the market to help you take care of your financial needs. However, almost all of them only allow borrowing a large amount and also have high-interest rates. What about when you need only a little amount of money? Well, that’s where payday loans come in.
A payday loan is basically a small loan that is short-term. You can acquire a payday loan to pay your urgent bills or whatever, and then you will be required to pay back the money. The name ‘payday’ is to suggest that you are supposed to return the money as soon as you get the paycheck on your next payday.
The payday loan industry has seen significant growth in recent years, but it has also received some serious criticism for various reasons. Nevertheless, payday loans are becoming more popular and they have their pros and cons. Let’s take a look at them.
Pros
Payday loans can be really useful.
When you need urgent financial assistance, you may find payday loans as the most suitable option. You can use the amount from payday loans to pay for due bills or any other expenditure that needs to be incurred urgently. You can return that small amount soon enough with your next salary. No matter how good you are at money management, some unforeseen circumstances in life may leave you with no other choice.
They are very easy to get.
The popularity of payday loans also has to do with their convenience. Almost anyone with a steady income, state ID, and a checking account can qualify for payday loans. You can expect to receive the amount within an hour or few hours of application and that can be considered as a huge plus. Some online companies also offer payday loans.
Even people with poor credit scores can get payday loans.
All the conventional loans require you to have a good credit score. That’s one thing that restricts people in times of an urgent need when their money management turns out not so effective. With payday loans, that’s not a problem as the lenders do not generally check the credit score of the applicant.
Cons
The terms of payday loans favor lenders.
Anyone who fails to comprehend the terms and agreement of payday loans can find themselves at a major disadvantage if something goes wrong and they are not able to pay back in time.
People often fail to meet the repayment terms.
The APR (Annual Percentage Rate) of interest on credit card loans is usually under 20 percent. In the case of payday loans, the interest averages to 300 percent when evaluated as APR. This means that payday loans are not a long-term solution and you must strictly avoid borrowing a bigger amount than what is absolutely needed.
It all comes down to personal preference. People who are confident of their money management and can easily meet the repayment terms can benefit from payday loans. Otherwise, other options should be explored.
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
We all know that payday loans are meant to help us cover all of the unexpected and sudden costs. While they are readily available loans, the main concern for many people is to get rid of this liability in a best possible manner. However, not many people are able to repay the loan. Besides, they end up fixing debt problems and creating more difficulties for themselves than the actual benefit sought out of it.
The basics of a payday loan
Not many of us fully realize the importance of returning such payday loans in time. That is because not all of us do the required planning for repayment of the loan before we actually take a loan. For you to plan a payday loan you must be aware of the basic terms of it as follows;
- A person can cancel a payday loan two days after signing an agreement
- You must return the complete amount of loan except for the borrowing cost
- A person is not required to pay any money unless the loan comes due
- A person may repay the loan before the due date without paying any excess charges to the lender
Once you know these above-mentioned basics (and others), only then you will be able to plan a loan in a way that would not leave you worse off in the end or creating more debt problems for you than proving to be any good. Hence, you must always deal with a payday loan with some sound strategy.
Dealing with a payday loan
There are several strategies to deal with a payday loan and get out of this vicious cycle, however, whichever strategy you choose to apply totally depends on your current financial situation. Let us have a look at some of the steps that might help you in getting rid of the payday loan.
- Don’t Panic – While payday loans are advertised to settle uncertain expenses, the majority of people use it for essentials like food or petrol. Therefore, stop panicking as you are not alone in this. Also, this would allow you to use other credit options wisely
- Stop borrowing more – Usually, people make the mistake of borrowing more loans in the hope of repaying the previous one. This cycle, however, needs to be stopped to avoid falling deep into the debts.
- Free up some funds in the budget – In order to repay a payday loan you must cut down on your expenses by reviewing your monthly budget. For this, you may need to cut expenses such as shopping, travel or dining etc
- Discuss with other lenders – No matter if you choose to consult a credit counselor or repay a payday loan on your own, another option is that you may seek the help of an alternative lender.
By following these tips, you can help yourself in repaying the payday loan in the quickest and most reasonable manner. That is, without taking more loans; however, planning ahead of time or before taking a loan is a factor that should not be ignored at any cost.
