Category Archives: Finance

This Time It is Personal: Protecting Personal Finances

Whether you’re a seasoned business owner with years of experience, or you’re just starting out as the owner of a business, you likely understand the risks and the concept that your business may not be a success. It’s an unfortunate reality of business ownership, but it’s important to take that reality into consideration, and follow the proper steps to protect your personal finances from the downside risks of being a business owner. It’s not like a game of Roulette, you need to take this very seriously and not gamble on your future.

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How to Improve Your Chances of Getting a Loan

Create the Appropriate Entity

Many business owners opt to go the route of operating as a sole proprietorship because it’s simple, but this isn’t often the best way to protect your personal assets. If you operate in this manner, you’re exposing your home and personal property to potential lawsuits and financial liability.
It’s best to operate a business under the protection of a corporation or limited liability company. If you do create an LLC, it’s also best to include the name of at least one other individual, whether it be a spouse, or someone else, to prevent the ability to prove that an LLC and an individual are the same.

Separate all Finances Accordingly

Keep business and personal finances completely separate. The documentation of a separate entity doesn’t provide enough protection—instead, use your company name on all documents, maintain separate accounts, and keep all documentation up-to-date and accurate.

Limit Ownership of Assets

As a business owner, it’s always a good idea to try and avoid outright ownership of assets. For example, lease when possible, because this leaves fewer assets open to the potential of seizure.

Maintain Adequate Insurance

Often, business owners will feel a false sense of security because they hide their personal assets or create an entity, but this is not adequate to protect personal assets. Instead, business insurance will give you protection against people who may be after your assets. Rather than targeting your personal assets, they can instead target your insurance policies.

Debt Management Programs – Do they really help you?

With the bad state of economy, the last couple of years have seen a real boom in the debt management industry, especially in the Australian Payday Loans Online industry. Various companies are now offering to manage your debts for a small fee – all you need to do is pay them a monthly fee, and they will devise a debt management program, negotiate with your creditors and distribute your available funds among them.

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It sounds so simple, but is there a catch? Many people make a mistake of believing that a debt management program is a miracle worker – they let the professionals manage their loan repayment and keep spending as before. This is a big mistake, because unless you change your spending habits and carefully adjust your budget to your current financial circumstances, you will never be free of debts.

Debt management programs can help you if you are in a hopelessly difficult financial situation that isn’t likely to improve soon, for example in the case where you lose a lot of money, like at the casinos or lotteries. When stuck with the credit card debts, debt management is a good choice if your financial problems are long-term, and especially if you cannot qualify for a credit card hardship program.

With the help of debt management, your debt should be consolidated, allowing you to repay with small monthly amounts over the longer time period. Typically, the company you hire to do your debt management should be able to negotiate better payment terms. Lower interest rate percentage can be a big help when dealing with a debt you are bound to be repaying for months (or years) to come.

So, are debt management programs helpful? Yes, but only in some aspects:
– When it can be better to let a neutral third-party negotiate with your creditors.
– A professional will know how to strike the best deal with your creditors.
– If you’re unsure where to start, DMP can create a debt management plan for you.

Make sure you find a good debt management program when you sign up to the casinos.