Debt consolidation leads to debt free life

Debt free living is a dream that everyone lives .Debt, when it become a part of any one’s life it is very difficult to manage day to day activities. Debt sometimes it comes in life willingly or sometime our need forced us to owe money. In both situations once we came under debt it is very difficult to decide which is right way to get out of debt is? Is it filing for bankruptcy? No, this in not an option to get out of debt. It will hamper credit score.

I have a great idea to lead your life debt free without hampering your credit score. Debt Consolidation is the best way to lead debt free life. You can always consult Debt consolidation company regarding debt relive advice or to consolidate your debt.

Debt Consolidation manages your finance in a systematic manner. Debt consolidation companies guide you with their advice and clear all your doubts. Debt consolidation provides you practical solutions to your debt problem so that you can come out of the clutches of the debt easily and effortlessly.

Debt consolidation reduces your debt to manageable limit roughly about 40%-60%. They arrange one convenient monthly payment. You can easily pay the consolidated amount to your creditor. It helps you in removing interest and late fees on your payment.

Debt consolidation helps you to eliminate creditor harassment. Because once you go under debt consolidation process, your negotiator will attend those calls and negotiate with them.

Besides justifying its literal meaning, debt consolidation can do wonders to your debt situation. Debt consolidation will show you how to develop a plan of action that will help you to achieve a debt free life. Debt free life is the key to financial freedom and debt consolidation will help you to achieve this.

Emerging role of finance manager in India

There has been a total attitudinal change among owners towards the finance manager. He is no longer referred to as my accountant. Instead of being a commodity, the finance manager is now a part of the top management. The finance manager does not cover the routine duties of finance and accounting. As a member of top management he is also responsible for formulation and implementation of policies and decision making.

The finance manager job has vastly changed. Earlier it was a support function now it is mainline. And finance itself has been a profit center.

In these competitive times, survival depends largely on an organization’s capabilities to anticipate and prepare for change rather than just react to it. The role of the financial officer, thus, becomes crucial to meet these technological, economic and political, changes.

Key challenges of Finance Manager

Investment Planning

Investment planning focuses on effective investment strategies and to analyze the risk associate with it. Finance manager is responsible for analyze the risk and help management to reduce this risk so that it does not affect the financial goal of an organization.

Financial Structure

Financial structure is the way in which company assets are financed such as short term, borrowings long term debt, and equity. Finance manager analyze the government rules and regulation, banks norms, capability of the organization and the available options in the market to finance the companies assets. That helps management to decide which option is profitable for the organization.

Treasury Operations

Treasury operations is basically the overall responsibility for administering the banking functions of organization, cash management and investment services. These all activities are directly linked with the growth of organization and profit.

Investor Communication

Finance department provides investors with an accurate account of the company's affairs. This helps investors to make informed buy or sell decisions.

Management Control

Control is one of the managerial functions like planning, organizing, directing etc.

It basically includes the three steps, to set the standards, measure actual performance and taking corrective action. Finance manager help organization to set the targets and helps organization to achieve that target by continuously monitoring the actual performance with set standards.

Clearly, the clout of the finance manager is growing along with the change in his role and reforms in the financial sector gather speed, this trend will only increase.

Financial managers aim to boost the levels of resources at their disposal. Besides, they control the functioning on money put in by external investors. Providing investors with sufficient amount of returns on their investments is one of the goals that every company tries to achieve. Efficient financial management ensures that this becomes possible.

Financial Analysis and profit

Financial statement is also known as financial statement analysis or accounting analysis. Every firm is most concerned with its profitability. Financial analysis is a best way to determine the profit of an organization. Financial ratios are the primary method used to analyze a company's financial statements.

Through this statement, it becomes easy for an organization to make comparison between past profit and the current profit. It is also used in budget planning for the next year.

Benefits of financial statements analysis

Keep Current on Debts

The Current Ratio analysis is the total current assets divided by the current liabilities on balance sheet. This can help to determine whether have adequate liquidity to meet upcoming debts.

Determine Profit Margins

Companies can determine their profit margins with the help of financial statement analysis. Companies can determine their cost of production. Gross Margin Percentage is used to determine this, which is total revenue less cost of sales divided by total revenue. Use this to help reduce the costs of production and help to increase the efficient utilization of resources. That ultimately contributes in growth of profit of a company.

Track Inventory

Inventory management is an important function of any organization. With the help of financial analysis any organization can better manage the inventory. Turn over ratio is used to determine whether it meets projected sales figures or not.

Determine Debt to Equity

A Debt-to-Equity Ratio determines how much total liabilities are in relation to equity in the business on a balance sheet.

See Improvement over Time

Companies can compare their financial statement numbers over time to spot trends and changes that affect business. With the help of this companies can determine the risk factors and can make plans to reduce these risk factors.

Helps in Bench Marking

Benchmarking is the process of determining who is the very best, and help to sets the standards. With the help of financial statement companies can set their bench mark.

The Financial Analysis performs in-depth analysis of the company’s financial and operating results independently and prepares management reports.

The financial statements are ultimately the "scorecard" for the company's performance .and it also helps to determine the strength of an organization.

Debt Counseling Services

If you are in debt and planning to get relive out of it. You can always go for debt counseling services. There are many debt counseling companies that provide counseling to individuals and companies who struggle with their short term and long term financial obligations. In fact many companies provide free counseling and some companies take few money for counseling. They guide the debtors to work out realistic budget planning.

Services provided by Debt Counseling Companies

Consultation

These companies provide advice and analysis to people those who are in deep debt and guide them how to get out of debt.

They help to set up a realistic household budget and financial action plan.

They guide to take control of and reduce debt.

Debt Relief Programs

They create debt relief programs which will help the clients to reduce their debt obligations. And most over it help to under stand the steps to reduce debt and make plan accordingly.

Lower the monthly payment amount

These companies help to lower the monthly payments of debtor.

Provide money management education

Awareness plays an important role in success. In debt counseling they provide education that how you can efficiently manage your money. They help you to point out your mistakes that you have done in planning your expenses.

Protect Credit Scores

These companies protect debtors credit Scores being damaged.

Debt Negotiation and Review

These companies negotiate with the creditors to settle down the debts.

They review the clients' financial position before the commencement of debt negotiation. Once negotiation starts they handle all the necessary documentations during the debt negotiation process.

Debt counseling services definitely help one’s to reduce their debt as well as provide guidance to keep away from debt. They also provide education to manage money in efficiently.

Infrastructure and Finance

Infrastructure is an important criterion of calculating the development of country. Infrastructure includes metro rail project, over bridge, ports, corporate buildings, Investment in real estate, Power plant, financial institutions, Hospitals, Schools and Colleges, communications systems, etc.

Today these all elements are interrelated and help to build the complex system of any country. Government invests a huge part of income of country on the development of infrastructure.

Contribution of Infrastructure and Finance

Help in Industrialization

Developments of infrastructure contribute a lot in growth of industries. Development in communication system help to carried out all business process more optimally that helps to increase the profit of companies. That ultimately increases the profit of country.

Over bridge and metro rail project help in transportation.

Generate more employment

For any project man power are required and after completion of any project they need to hire people to carried out the activities. For example after completion of metro rail project they need to hire people for ticket counter, security, driver, etc.

Ultimately it helps to generate employment that helps to increase the per ca pita income of country.

Development of financial institutions

Development of financial institution act as catalyst to carried out the activities of business process. Expansion in same product line or in different product line, companies required finance. The capital requirement of the company is full filled by these institutions. They are also making considerable efforts to facilitate the process of emergence of new entrepreneurs for setting up enterprises in small scale sector.

It helps to develop the backward region and motivate people to become an entrepreneur.

That ultimately contributes in growth of country.

Increase living standards

Employments, industrialization, and development of entrepreneurship ultimately help people to become financially strong and increase their standard of living.

Promote foreign Trade

Supports from financial institutions help business man to trade outside the country. It is an important factor of the development of any country. Foreign trade helps in the optimum use of natural resources. It ensures the presence of stable price by avoiding wide fluctuations in prices. It tries to equalize the world price. It enables a country to import those goods which it cannot produce. It ensures large production because the production is carried on to meet the demand of its people as well as world market. Large scale production also ensures a great deal of internal economies which reduces the cost of production.

All above points proves that infrastructure and finance are the important key factor for development of country. It also helps in growth of individuals

How Banks Can Help You Improve Your Personal Finance

Dream of becoming rich is not so difficult it is only possible when one knows how to manage finance. For this you need to understand your goals and needs. When you thought through what you really want your personal finances to look like, you can go seek help from your bank. Banks can provide you with personalized finance solutions. They can help you better manage your finances. This is why many people seek advice about personal finance from professionals.

Banks help you to improve your finance such ways.

Consult to bank advisor

One can always consult to a bank advisor about their finance and what are the financial solutions are available that can work for your benefit. Bank advisor always help you to plan your financial decision. They will also give guidance to improve finance for your future.
Even if you have a concrete plan that includes all your wants and needs, but only a vague idea about what your financial future looks like, you should still drop in for help. They are there to guide you in your quest for personal financial liberation. They are there to help you--and you should utilize their services: that's what they are there for.



Services provided by banks

The type of services offered by a bank help you to improve your money. They directly take deposits from the general public and issue checking and
Savings account. And it would help you to keep control of your money.
Banks also give interest on your deposited money after a period of time.
You can also take loan from bank if you are planning to start your personal business. Banks are ready to help you if your idea is nice.

They are not our enemy if one’s want to improve there finance they can always ask for help to banks. They are there to help us in planning our finance and also provide many services that help us to save money.
One can improve their finance by taking help of banks.

How to Finance a Business

It is no longer a dream to start one’s own business or to expand his business to take the advantage of prevailing opportunities. As of now it is only a matter of determining the ways that are available to finance a business at right time, so that it can succeed.

Broadly speaking there are main six ways available to finance your business.

Supplier credit

It is the simplest way to obtained fund for business. Companies buy goods and services and have anywhere from seven days till 6 months to pay for them; when companies need more credit from suppliers the financial controllers will negotiate with suppliers for longer credit terms.

Lease financing

Instead of purchasing the equipment, one can choose to lease equipment - this is a form of financing. Cars, computers and heavy equipment can be financed for a period of time. And then have the option to either return it or buy it at a reduced price.


Bank Loan

Many banks provide loans with fixed or variable rate of interest. It is based on size of business and the growth opportunity of that particular industry in which one is going to invest.

Bank overdraft

A bank overdraft may be a good source of short-term finance to help a business. Banks provide a credit limit according the amount available in one’s account. The main advantage of overdraft is that the interest is calculated on daily basis.

Stock Issues

Issuing stock of your company is great source of arranging finance. It represents an ownership in the business and in all of its assets.
Equity shares, preferential shares and debentures can be floated in the market to arrange huge funds.

Factoring

Factoring is a process which immediately allows the company to receive money based on the value of its outstanding invoices as well as to receive payment of future invoices more quickly.
Factoring companies generally pays up to eighty percent of amount of the bill.

All such techniques are to be used in accordance with the nature of the business and prevalent market conditions.