Tag Archives: bankruptcy

A Makeover For Your Money

Book Review, , , , , , ,

I like to watch television shows that present dramatic transformations in people’s lives. Whether the participants receive a home renovation, a wardrobe revolution or a personal renewal, it is very satisfying to observe the positive changes that take effect. It is also heartening to see that even the worst situations can often be resolved once the right treatments are applied.

If you have a problem with your vision, then a visit to the optometrist and the right eyeglass prescription will usually allow you to see clearly again. Similarly, if your financial future looks fuzzy, then you probably need to get the right remedy from a ‘money doctor.’ The Total Money Makeover by Dave Ramsey is definitely one book that can provide you with a cure for your money concerns.

Financial disasters can be fixed

If you are having challenges with money, I recommend that you read this book. It is interspersed with inspiring stories of persons who were facing severe financial crises and were saved by applying the Total Money Makeover plan. You might be encouraged to know that there are solutions for people with money problems that are even worse than yours. Continue reading A Makeover For Your Money →

Money Mission — Decrease Debt Dependency

Debt, , , , , , , , ,

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

Debt, , , , , , ,

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 →

Breaking The Cycle of Debt

Debt, , , , , , , , , , ,

One of the problems with money is that there never seems to be enough of it to buy all the things we want in life. However, the lack of funds doesn’t necessarily stop some of us from getting the things we desire. Thanks to our culture of credit, there are many sources from which we can borrow – bank loans, credit cards, payroll advances, and informal money lenders.

I can still recall my first loan transaction. After graduating from university, I wanted to buy my own television so that I could determine what I wanted to watch instead of depending on my parents’ viewing preferences. Even though I didn’t have any money to buy one, my mother had saved up enough money in my credit union account over the years to allow me access to a loan.

Thinking back on that experience in which I had to fill out forms, get proof of income and find a suitable guarantor, I remember that it made me feel important, as if I was doing a very grown-up transaction. It also felt great knowing that I could get what I wanted even though I didn’t have any money! Continue reading Breaking The Cycle of Debt →

3 Ms of Money- Dealing with Debt

3 Ms of Money, , , , , , , , , , ,

Writing my first book, The 3 Ms of Money, has allowed me to take a look back in time at all the BIG money mistakes that I have made. One of the worst wrong turns I have made is to think that having access to other people’s money (OPM) would make life easier.

Borrowing money can be a very destructive practice, as it lulls you into a spending lifestyle that isn’t sustainable. When you are dependent on a source of income that doesn’t come from you, you lose sight of the fact that you are living beyond your ability to produce. As your desire for credit grows, eventually the monthly payments become too high to manage, and then your debt mushrooms beyond control. Then you have to keep on borrowing to stay afloat. Very often at this point, you can’t access any more credit and your entire financial well-being is impacted.

The Bible says that the “borrower is servant to the lender” (Proverbs 22:7). I have found this to be true. For years I worked hard to pay off thousands of dollars in loan interest. And for what? Useless trinkets and idle entertainment that were long forgotten!

I teach people that debt is not only about borrowing money. It’s any obligation where someone else has delivered their part of the deal, and you have not. Just recently, I almost got tempted to take a great mobile phone offer where I could get a ‘FREE’ Nokia E71. In return I would have to sign a 3-year contract with the mobile company. After thinking about it some more,I realised that I would only be selling myself into 3 years of slavery to pay for this ‘free’ phone. What if I hated their service? What if they raised the monthly cost? I couldn’t complain because they had supplied their end of the deal.

I decided I would just save up and pay for it in CASH, thank you.

Anyway, you can read more about my misadventures with debt and what I had to do to get myself out of the mess I had created when The 3 Ms of Money is published.

Keep thinking and acting Financially SMART!

Subscribe to Financially S.M.A.R.T. by Email

Is declaring bankruptcy an option?

Debt, , , , ,

Christmas is traditionally a season of merriment and relaxation where we normally get to let go of our concerns and just enjoy ourselves. However, this year many people are so focused on their financial challenges that they are finding it difficult to have fun. Some are extremely anxious about expanding debt positions and impending job losses, and wonder how they are going to turn around their finances.

In the United States, it is fairly common for people who have been overwhelmed by debt to file for bankruptcy. According to Businessdictionary.com, bankruptcy is the legal procedure for liquidating a company, or property owned by an individual, which cannot pay its debts out of current assets. In Jamaica, only individuals file for bankruptcy as companies are placed in liquidation or receivership.

Is declaring bankruptcy an option for average Jamaicans who are mired in debt, and have no means to pay it back? I asked the Office of the Trustee in Bankruptcy to enlighten us about the process. Continue reading Is declaring bankruptcy an option? →

Don’t Give Up!

Money & Your Mind, , ,

“I don’t know where to turn financially- I was made redundant and was without a job for two years. Then I started a little shop and a hurricane destroyed everything I had. I tried to make some money in a network marketing business, but the profits were too small to make a difference. To add to it all, my girlfriend is expecting our first baby in three months. I really feel hopeless right now.”

As a financial coach, I hear a lot of stories of financial despair. Sometimes it’s the quiet desperation of persons who are outwardly successful with all the trappings of wealth, but are inwardly terrified because the bank owns it all, and they know that a missed pay cheque can lead to financial ruin.

Then there are the plaintive cries from those who have no income- tales of job unavailability, impending foreclosures, and bailiffs at the door abound. Then somewhere in between are the masses of people mired in credit card crises, spending addictions, pension-less retirements, failed businesses, and payroll loans spiraling out of control. Continue reading Don’t Give Up! →