“… Income twenty pounds, expenditure £19.90, result happiness,” declared Mr Micawber in Charles Dickens’ book David Copperfield.  “Income twenty pounds, expenditure £20.10, result misery.”

This was written 150 years ago in pounds, shillings & pence and it referred to a reasonable annual income at that time. Today, we may be amused that anyone could live on £20.00 per year and, as Mr Micawber attempted, keep his family and a servant too, but the sentiment of the statement remains true to this day.  If your expenditure is greater than your income then you will be in debt and anyone who has experienced debt will vouch that it is misery.

So what’s the remedy?  Increase your income, reduce your expenditure, or do both.  Easier said than done?  Well, Mr Micawber ended up going to prison for his debts but we live in much more financially-liberated days so, actually, we have a better chance of improving our personal finances than he did. 

So here’s our top ten countdown as to ways of keeping yourself out of debt:

1. Aim to save not borrow; then use your savings to buy the things that you really want.

2. Don’t smoke!  You would be amazed at how many people do not realise that they spend more money on fags than food.

3. You don’t have to go out every night!  Reduce the number of times that you go the Pub etc.

4. Beware of Christmas; its enjoyment does not depend on the amount you spend on presents.

5. Get a job; or get a better paid job.  Recession or not, some people even have two jobs!

6. Prioritise and pay important bills on time like rent and council tax – if you don’t, court costs and bailiff costs will be added and this can cost you literally hundreds of pounds extra each year.

7. Do you really need that expensive car on HP?  Pay cash for a cheaper one and save on those monthly payments.

8. Is that holiday really essential?  It costs a fortune to follow the sun.

9. Keep up your payments on your mortgage; as soon as you are in arrears many mortgage companies start adding monthly charges and extra interest to your account making your mortgage more expensive.  Always remember, the quicker you pay your mortgage the cheaper it will be in long-run.

10. Be very careful about being persuaded to debts by re-mortgaging your home.  Debt Collectors may hassle you, but it is never worth loosing your house for a pair of trousers.

And as a final idea; how about flogging your unwanted items on ebay or at a car boot sale to raise a little extra cash?



By: Nick Hacket Pain

About the Author:

Caffeinated Content

Past due accounts receivables are a constant problem with many businesses especially during any economic down turn. Sometimes the time and effort to get paid will exceed that needed to make your business grow and function efficiently. This makes an efficient system of contacting your past due accounts very important. There are basically four stages of debt recovery that are employed by businesses.

Initially a business that has past due account receivables will use its own resources to contact the customer. In most cases this is done with debt collection letters. Normally the first collection letter is sent out within 15 days after an account is past due. This is normally a gentle reminder that the account is past due and a request that they contact your business if there are any questions or they need assistance.

Second debt collection letters are normally sent after another 30 days have passed and the customer has not made contact with you. The letter should again state the amount that is past due and how long it is past due. Enclosed with the letter should be copies of the original invoice. Again you should urge the customer to make immediate contact with you. Offer incentives to make the payment and let them know that you are willing to work with them. Note that failure to take action could mean filing a report with the business credit bureau or turning the account over to a collection agency or a lawyer. Always include a self addressed envelope with a stamp to encourage a response.

If the past due account does respond to the second collection letter it is a good bet that further debt collection letters and contacts will be unsuccessful. You may consider using the telephone to contact the customer however you must be well prepared with a script that keeps you focused on the collection process. In most cases unless you have had the proper training telephone collections are best left to the experts.

The next step in the collection process is to employ a collection agency to recover your past due accounts. Collection agencies are expensive to use many times requiring large upfront fees. Online debt collection agencies are much less expensive many times costing less than 10 dollars per collection effort. In addition online debt collection allows the business owner to recover more of the debt and control the collection process from the businesses computers. Essentially an online debt collection agency uses professional debt collect letters to begin the collection process. Getting a collection letter from a professional collection agency has a chilling effect on most past due account holders.

If the efforts of an online debt collection agency are not effective then your only recourse is to sue the debtor. In many cases you can file in small claims court and manage the case yourself. However if the debt is substantial you will need the skills of an attorney to effectively sue the debtor. Obviously this is a very expensive option and thus the amount of the debt must be substantial to make the process worthwhile.

Whether you use an online debt collection agency, the courts or do the collections in house the process of collections is expensive and time consuming. Focusing your efforts through an effective process will help reduce the cost and increase the collection of your accounts receivables



By: Jim Kesel

About the Author:

Kansieo.com

Let me tell you something about the three ways of settling debt which are debt consolidation and debt settlement (the third type would be not to care about it at all, which you have to care about!).

Debt consolidation helps you get out of debt. With consolidation, a company acts as a mediator and negotiates lower rates with your creditors. You make one single payment every month to the debt consolidation company, and they handle paying all your accounts.