Archive for the ‘Finance’ Category

• IVA -AN ADVANTAGE

  Date: 2012.01.11 | Category: Finance | Response: 0

  IVA stands for Individual Voluntary Arrangement. It helps to avoid bankruptcy. In 1986 a law was passed in U.K. Unlike debt management, it is agreement with the creditors. Flexible terms can be made on an individual’s own circumstances. They can be based on a number of factors such as capital, third party payment and income. But also all these factors can come under one shed. The contractual arrangement should indeed be a planned process with the creditors. In Scotland there is a similar process to the IVA known as the Protected Trust Deed. In case of IVA, advice should be taken to decide on the best option.

  There are many advantages in this procedure. First of all the agreement made between the debtor and the creditor is private. The financial matters are not disclosed in public. The length can have duration of five years; however they do not have a fixed period. The agreement could last as long as required for the debtors to pay back the debt. Using bankruptcy, IVA does not restrict the debtors from obtaining credit. It also provides a protection because all the insecure creditors are bounded by the contract. Sometimes the IVA fails because the individual could repay the debt through out.

• DEBT HELP: BUDGETING TIPS

  Date: 2011.12.28 | Category: Finance | Response: 0

  For those, who require debt help, budgeting is the easiest way to overcome debt. Budgeting helps us to get a clear idea of our financial status. Debt help shows us whether the money is spent on necessary amenities and minimal luxuries or mostly on useless yet extravagant items. Proper budgeting also helps to multiply our money if it is invested wisely. Debt help also ensures that the loan taken does not exceed too much for one to handle at some point. It also helps us secure our future through proper pension plans and the future of our children.

  A record of the monthly expenditure must be kept, which in turn gives an approximate picture of the annual expenditure of the family. A little amount can be kept aside monthly for expenses like insurance, maintenance of house, holidays or festivals which comes occasionally. The surplus amount can be invested wisely, which can be used during crisis period or for future. Debt help also helps us to get an idea about the areas where reduction can be made on expenses. This can be done by keeping a track on the ongoing sale on necessary items, use of cheaper items by comparing the price online.

• Debt Collection and FDCPA

  Date: 2011.08.20 | Category: Finance | Response: 0

  Debt collection was very different from what it is today. Earlier there were no e-mails, mobiles or voicemail so that the debtors could be contacted easily, like they are done today with latest technologies. Social networking was something that was only done at parties that too occasionally therefore earlier debtors were contacted through limited means. With so many new techniques now communication has become very feasible thus giving more importance to the FDCPA that was enacted for smooth debt collection.

  The Fair Debt Collection Practises Act prohibits certain type of communication that may offend the debtor. It helps to define the right channel to communicate with the debtor so that the debt collector can follow the right path without committing any offence under the act. The debt collection company can be held responsible if they do not follow the terms mention in the Fair Debt Collection Practises Act. For example if a debt collector wants to contact a debtor he may send him a mail rather than contacting him at work which may not be allowed by the employer. There has to be an ethical path that should be followed so that the debtor is not under any inconvenience because of the communication method.

• DEBT RECOVERY AGENCY

  Date: 2011.07.21 | Category: Finance | Response: 0

  Recovering bad debts and money that a business owes to its customers is an activity that can sometimes look very unpleasant and uncomfortable. Many times, a business feels that collecting debt would put its company in a bad name and therefore they write off their debts. But this cannot be done every time; otherwise the business will run into loses.

  Outsourcing your debt collection to a debt recovery agency is a very crucial decision that must be taken wisely. Hiring a debt recovery agency is a decision that is required to be considered when the customers are unwilling to pay off the debts and the time period extended to them has also elapsed. Sometimes it happens that a prestigious and a well known company or a person misses out a payment or is experiencing a financial adversity. When this happens, a debt recovery agency is hired. Even if the clients are unable to pay the debts, collection of debts is very important since the working of the business can be affected by it. With lower access and availability to credit, many companies are forced to take services from a debt recovery agency so that smooth inflows and outflows of cash can be maintained in the business.