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Tuesday, November 23, 2010

Found the save way of managing loans

Do not be afraid to make a loan!! Why??
If you know the save way of managing loan, you will definitely get the benefit on it. Do you thing the rich man have no loans?? The answer is..big no..no... They have loans either. But they know how to make this loans as good loans.  The good loans bring prosperity to you, whereas bad loans will bring misery.
"Good Loans" occurs when you owe but other people who pay the debt. Instead "Bad Loans" occurs when you are in debt and you also have to pay the debt.


The different characteristics of loans between the rich and the poor is the rich owes to buy productive assets or property while the debt to accumulate assets, but the poor use it for consumptive things. Else, the rich pay a debt by revenues earned from the productive asset (passive income). Meanwhile the poor pay the debts from his income (active income).


How to manage the debt?
Here are some tips you need to know in managing debt:
  1. Payable only for unexpected needs and can not be postponed, for example there is a sick family member or school purposes.
  2. Payable for purchase of productive assets and increasing its value, such as houses, land and gold. Try not owe to buy mobile phones, shoes, electrical appliances, clothes, bags and accessories for body and home furniture. Because these items have a tendency to decrease in value.
  3. A limit on debt payments is 30% of your income.
  4. Pay debt on time and note / trim the administration and documentation associated with the debt.
  5. Do not cover debts owed by another. Unless you have been properly take into account all the excess and the fees charged.
  6. The order you owe should be prioritized in order starting from the safest, namely: spouse, parents, siblings, friends, pawn shops, banks, leasing and pay day loans. But if you need money and you are not comfort to borrow money, you might sacrifice and sell your assets are still valuable (eg. gold).

In fact there are many ways to convert debt into wealth

Donald Trump, The King Estate is an example of concrete was how he went bankrupt in the 1990s, with debt of USD $ 3 billion and the deficit worth up to USD $ 300 Million. But with the assets and funds are still available, Donald Trump could conjure up her debt to income, which could ultimately make him rise and prosper again until now.  And there are 5 early steps to convert debt into wealth:
  1. Be honest to apply your financial condition.
  2. Allocate 10% of gross income to build your business assets, if you pull through this then the sooner you get out of debt, this concept is called "Pay Yourself First" a.k.a pay yourself first.
  3. Allocate 10% of gross income for social activities. Even in a state forest you have to get used too keep doing social activities
  4. Allocate 10% ~ 30% of gross income to mortgage debt. Initially this installment will lead to protests from the lenders you surely, but with you to explain your debt settlement plan, creditors would understand and approve your step
  5. Allocate a maximum of only 15% ~ 30% of gross income to meet your personal interests, not too flamboyant Because anyway you are still in a position to owe
  6. Always seek the possibility of other business opportunities, and use the remaining funds to try to generate revenue from new things in order to pay your debt
Due to the strict debt management, your life will be much more secure and comfortable, and can invest for the future.