Tag Archives: credit card debt

Maximising Your Money After Losing Your Job

Budgeting, Debt, Spending, , , , , , , , ,

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 →

New Year’s Resolution #3: Reduce Debt

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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 →

Five Things You Need to Know About Borrowing

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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 →

Financial Freedom at Last!

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On August 1, our nation commemorated another Emancipation Day; a time when Jamaicans can reflect on the challenging periods in our country’s history and give thanks that the practice of human slavery was abolished. Personal freedom is a right that we should never take for granted.

According to Dictionary.com, ’emancipate’ means to free from bondage, restraint or influence. A person who has been held back by a restrictive system, physical impediment or an inhibiting force will be emancipated when the thing that prevents him from moving freely is eliminated.

While we can celebrate the fact that our citizens are no longer bound by the organised structure of slavery, the reality is that many persons are still shackled by the chains of financial bondage. Their money problems hinder them from living their desired lifestyles and accomplishing their goals. Continue reading Financial Freedom at Last! →

Money Mission: Get Honest About Your Money

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Debbie shared a quick joke with the postman as she took the bundle of letters from his hands. “I long for the day when I can get some money in the mail instead of just more bills!” she said with a chuckle. The postman laughed heartily as he rode away, “The only way money will come in the mail is if you start buying lottery tickets!” he retorted.

As she closed the gate, Debbie ruffled through the items that had just been delivered. There was correspondence from the furniture store from which she had bought a new Smart TV on hire purchase, a letter from a loan recovery agency, two more from companies she did not recognise, and a green and white slip which indicated that she had received registered mail.

With an irritated sigh, she distractedly pushed the pile of envelopes into her kitchen drawer which was already stuffed with unopened mail. “I wish they would stop sending these stupid payment requests,” she muttered to herself. “I need something to lift my spirits.” Grabbing her smart phone, she started composing a BB message to her best friend Althea. Continue reading Money Mission: Get Honest About Your Money →

Money Mission — Decrease Debt Dependency

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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

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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 →

Pride Goes Before a Financial Fall

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“Pride goes before destruction, a haughty spirit before a fall.” – Proverbs 16:18 (NIV)

 Act 1: Pride – a high opinion of your own importance

Jonathan, a 34-year-old accountant, makes an average income and lives in an affordable rented one-bedroom midtown flat. He inherited a 2001 Toyota from his father, which performs reliably without needing major repairs. However, despite his reasonably comfortable existence, Jonathan is very dissatisfied with his present position.

Many of Jonathan’s former schoolmates have advanced rapidly up the corporate ladder, and now hold major positions in banking and product distribution companies. As the valedictorian for his graduating year at high school, Jonathan is painfully aware that most of his high-income colleagues were less-than-stellar achievers in school.

Every time they get together, Jonathan compares himself with his friends and thinks that he comes up short in every area. As they discuss the latest high-tech features of their high-end SUVs and share details of their recent jaunts to luxury resorts, he resents the fact that his income does not allow him to live the lifestyle that he thinks he really deserves. Continue reading Pride Goes Before a Financial Fall →

When Less is More

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Last week we looked how we could really create a prosperous New Year by putting some of the universal laws to work in your favour – the Law of Abundance, the Law of Attraction and the Law of Accumulation. According to the experts, diligently applying these success principles can increase wealth and money into your life.

Unfortunately, my New Year brought an unwelcome present in the form of a vicious flu bug which relegated me to bed for several days. With plenty of time on my hands to reflect on what’s truly important, I thought that if I had to choose between wealth and health, my prosperity wishes would be out the door in an instant.

What’s the point of being rich if you don’t feel good? Sure, you could afford to pay for a really nice hospital room, but you’d still be sick and miserable. Continue reading When Less is More →

Christmas Bills Blues

Spending, , , ,

“I spent too much money last Christmas on gifts and parties. I had expected a good bonus cheque which never materialized. Now I’m stuck with over J$60,000 in credit card debt, and I don’t have a clue how I’m going to pay it. Help!”

Christmas is a time when even the most disciplined shoppers throw caution to the wind and reward themselves for a year of frugal living. Those who live to shop go into overdrive and buy all the must-have and must-give items without a thought for January.

You learnt the hard way not to count your chickens before they hatch. In order to be a good money manager you must earn a dollar before you plan to spend that dollar, as spending money that you don’t have will only land you in debt.

Before we try to find ways to get you out this debt, let’s look at the true cost of your Christmas spending spree. You admit that you spent too much money. When you look back at the things you acquired, was it worth it?

Do you even know if your gift-giving was truly appreciated?

Continue reading Christmas Bills Blues →