Category Archives: Debt

Maximising Your Money After Losing Your Job

Today’s economic climate dictates that businesses need to become leaner and more cost-efficient to survive in a competitive environment. Many government institutions also have to regulate their operations to ensure that they can make the best use of limited resources.

When the owners or managers of these organisations decide that they need to reduce expenses, they will often look first to their employees. Staff-related costs can be a significant portion of an entity’s budget, so cutting the wage bill can usually benefit the bottom-line.

While a business owner or management official may justify the advantages of reducing the staff component, the workers may see things differently. A decision to lay off people may be seen as unwarranted, especially if they think that the organisation is making enough money to retain them.

Is your job in jeopardy?

Whether you agree with the management’s stance or the employees’ viewpoint, the reality is that the employment landscape has changed. More positions will be downsized in ensuing years, so if you are currently employed, you should prepare yourself for the possibility of job loss. Continue reading Maximising Your Money After Losing Your Job

Jamaican Style Money Guide: Poun’ A Fret Can’t Pay Ounce A Debt

When we are faced with a difficult situation, sometimes we may not be mentally ready to accept a few wise words of advice. As the saying goes, “Misery loves company,” and very often we secretly prefer to receive sympathetic gestures than to take positive action to eliminate our challenges.

I have found this reality to be very evident with persons who are suffering from money problems. Having experienced many of my own financial crises over the years, I completely understand this ‘woe-is-me’ mindset which tends to trap a person in a state of helplessness and negativity.

Of all the money predicaments that you can encounter, chronic indebtedness is perhaps the most challenging. There is nothing as depressing and defeating as facing unpaid bills, past-due notices and demand letters, and worrying about the legal consequences of your inability to pay. Continue reading Jamaican Style Money Guide: Poun’ A Fret Can’t Pay Ounce A Debt

Jamaican Style Money Guide: Short Cut Draw Blood

Many of our Jamaican proverbs are light and witty; while they give us pause to think, they usually also give us a hearty laugh. However, there are other old-time sayings that contain dire warnings which explain the problems that we will bring upon ourselves if their messages are ignored.

One ominous Jamaican adage that is often used for cautionary advice is, “Short cut draw blood.” This succinct saying has a clever twist on the meaning of the word ‘cut’; while a short cut can be a quicker way to reach your destination, the word cut can also connote a type of physical injury.

It’s natural for people to seek the easiest route to achieve their objectives, and historically this has helped mankind to develop many important inventions. However, there are times when trying to find the easy way out of a situation can actually cause more harm than good. Continue reading Jamaican Style Money Guide: Short Cut Draw Blood

New Year’s Resolution #3: Reduce Debt

If 2014 ended with your finances in a precarious position, then perhaps you have pledged to improve your money situation this year. Since many people don’t keep the resolutions they make at the beginning of a year, what can you do to ensure that you realise your 2015 money goals?

It’s best to review all the things you want to achieve with your money, and identify two or three objectives that would dramatically improve your finances. Then you need to carry out some small action every day that will further these goals, and you should see positive growth by year end.

An increasing number of people are currently struggling with debt issues which are crippling their ability to manage their money. If you admit that your borrowing has put your financial future in jeopardy, then reducing or eliminating debt must be one of your important plans for this year. Continue reading New Year’s Resolution #3: Reduce Debt

Letting Go Financially

Last week we looked at the value of exhibiting patience when making important financial decisions. You need to be prudent with your spending and debt choices, and you should give yourself enough time to get the best results from your efforts in saving, investing and creating wealth.

While it’s advisable to stay on course with your financial goals and allow time to work in your favour, there are instances when you actually need to move quickly to get rid of unhealthy money habits or reverse unwise decisions you may have made.

When you commit to a specific financial route, you may not be certain if you should hold on because you made the right choice, or if your results indicate that you should change direction. Let’s look at some situations in which it’s time to cut loose and ‘wheel and come again,’ as we say in Jamaica. Continue reading Letting Go Financially

Five Things You Need to Know About Borrowing

It’s important for you to be well informed about various issues that can affect your money. When it comes to your finances, ignorance can be very expensive. Borrowing money comes with a cost, and there are many considerations that you need to think about before you take on debt.

Why do you want to borrow?

Prior to making any borrowing decisions, you need to be honest about the reasons why you think you need a loan in the first place. Do you choose to buy consumer items on credit just because you want to get them right away, or are you using loans to help you meet your monthly bills?

It’s best to avoid borrowing to satisfy immediate gratification desires or support budget shortfalls. In the first case, you will make unnecessary interest payments because you lacked the discipline to save for what you want, while the second reason will throw you into a never-ending cycle of debt. Continue reading Five Things You Need to Know About Borrowing

Money Mission — Decrease Debt Dependency

Last week, I looked at some of the financial challenges that often develop when persons seek to finance their budgetary needs with loans.

I am still alarmed at the increasing number of borrowers who have reached their credit ceiling, with the majority of their paycheques servicing their debt. Many of them don’t even receive enough take-home pay to buy basic necessities.

One of our Jamaican proverbs declares: “What fall off a head, mus’ drop pon shoulder;” This may be interpreted as – something that was meant for the father is sometimes passed on to his children.

This saying could be applied to our country’s debt problems. In the same way that our Government is highly indebted, so are our citizens suffering from an over-dependence on debt. Continue reading Money Mission — Decrease Debt Dependency

Jamaicans in Debt Crisis

Many years ago, I decided to start a little revolving loan scheme for micro entrepreneurs. I had access to some extra funds and thought that it would be a great idea to help a few business owners expand their operations with small disbursements. With my usual enthusiasm, I found a few persons who needed these services and my new venture was underway.

At first, the results were encouraging. A seamstress was able to purchase raw material for a large corporate order; a small wholesale owner was able to obtain another deep freeze for his establishment; a network marketer was able to purchase a large amount of products for sale to her customers. They all paid back their loans on time and I was buoyed by my early success.

However, some of the other loan recipients did not have similar outcomes. Although they had submitted proposals for how the money could help their business growth, it seemed that most of the funds went to either prop up their budget deficits or pay off old loans. Consequently, several persons found it difficult to maintain payments or kept coming back for more loans. Continue reading Jamaicans in Debt Crisis

Is Borrowing for Education a Good Idea?

Back-to-school time is here and many consumers are busy sourcing books, supplies, uniforms and other items for their children or for their own schooling. During this period, there is usually an increase in advertisements promoting educational assistance loans.

The reality is that many people have to borrow money to pay for these school expenses. While the ability to access financing for school purposes may seem like a blessing when your budget is tight, is it always a financially smart move? Continue reading Is Borrowing for Education a Good Idea?

Money Mission: Emancipate yourself from financial slavery

“Emancipate yourself from mental slavery; none but ourselves can free our minds.” – Marcus Garvey

This week and next Jamaica commemorates its 50th anniversary of Independence as well as 174 years of Emancipation from slavery. In the midst of all the celebratory events, some of us might question how independent or free we really are as a nation, with all the economic, social and political challenges that continue to hinder our productivity and prosperity.

In true Jamaican style, most of us will ‘tek kin teet kibba heart bun’ and enjoy the festivities, putting aside our concerns until after the holidays. However, all too soon, the pressing problems will resurface and vie for our urgent attention. When it comes to money, it seems that both the country and many of its citizens are still trapped in economic slavery.

What are some of the ways in which you can be held captive by the shackles of financial bondage? Continue reading Money Mission: Emancipate yourself from financial slavery