Given the harsh economic time, state of the economy and the rise in basic commodity prices such as food, fuel and cost of housing, personal finances has become a hot topic for a while. Many people live a debt-ridden life mainly on unsecured credit instruments like credit cards. In the financial market, so many other credit instruments are available to provide money to borrowers for many different reasons.
Modern financial systems are extremely complex with markets being made up of many forms of investment instruments and different kinds of investors. This has made the financial market extremely difficult to analyses especially when it comes to the different aspects of the market. For this reason, Credit Rating Agencies (CRAs) are the most applicable to conduct such an analysis.
When a credit rating is done, it takes into account the credit worthiness of the issuer, that is the capacity of the issuer to pay back the loan and in turn affecting the interest that the security is given. Therefore, this will have an impact on the kind of investors that the particular security will attract in comparison to other securities. This same technique can be used to assess the credit worthiness of the Jones’ family finances.
Credit ratings are used in various ways and by different people and parties in the financial world from issuers, investors, brokers, and even investment banks. Knowing this, various users use the information in many different ways to achieve their goals in the financial sector. For instance, credit rates usually increase the range of alternative investments for investors meaning the use of easy measurements that are independent of credit risk and are reliable indicators of the market. This makes the market more efficient by lowering the cost of investing for both the borrower and the lender. This is because in each case, and there is diversity in the market and alternatives. A more efficient market means that there is an increase in capital in the financial market, hence providing robust and maintainable growth. Given the Jones’ financial history, diversification would be an advisable step seeing they are expecting a second child. Covering their debts will ensure their financial future is secured.
In the current world that we live in, there are many dynamics in a given work place. Employers expect a lot from their employees. Organizations expect a lot from their staff to justify their salary packages. It is a cut-throat world where individuals will do almost anything to beat a deadline, land an account or client or move product. This requires specialized skill set depending on your area of profession.
The workplaces dynamics differ from organization to the organization were depending on your profession, certain things are expected of an employee. However, on main factor remains constant, that is the human interactions are it will colleagues or clients. This being the case, spending time together with individuals in an office for long hours of the day and even night might yield to some conflict.
Any business practice has a social responsibility to its employees, shareholders, investors and the public. The business owners have a key responsibility to their employees to provide a healthy working environment and fair compensation. Good pay packages will allow them to live comfortably and better their lives and of those around them. Ethical business practices are also to be upheld at all times. This ensures that whatever business the organization is in, it is conducted above board in a transparent manner. No question can be raised to challenge the moral and ethical values of the business. This is critical to all the stockholders of the business as it guarantees them of a strong moral standing in the business society. Supporting Mary Johns during her financial troubles is vital in ensuring the success of the business and Mary.
Personal bankruptcy filing is a debt control instrument that provides a fresh start for individuals who cannot service their debts. This is an option the Jones' may want to consider. It is a court order declaring an individual cannot settle certain unsecured debts. These debts lead to repossession of personal or business property, foreclosures, shut-off of utilities like gas, electricity and water services among other services and other form of debt collection.
An individual, before filing for bankruptcy should consider all options available. One should from their financial situation to the net value and future sources of income. This is mainly because filing for bankruptcy should be an option of last resort. This is mainly because as much as is seen as a fresh start, a personal bankruptcy filing remains in your financial record for at least ten years. This can be a challenge as securing finances from financial institutions can be difficult as the individual is a high-risk borrower. Therefore, securing mortgages, a personal or business loan becomes exceedingly difficult. An individual should seek legal counsel before filing for personal bankruptcy to get advice on the various options available in relation to debt management.
Before filing for bankruptcy, on should make a budget and timeline at all the debts one owes, how much and the due date of the debts. This will create a clear picture if whether or not it is possible to become debt free in the near future. It also provides a picture on how hard it will be on the individual and his family.
There are services such as credit counselling that provide exemplary service on credit control such as negotiating lower interest rates, and balances. This services usually offer advice on the best course of action when on is in financial difficulty. However, one should be cautious of the information given, as it may be misleading at times.
Financial debts are also settled through attorneys; this involves an individual in debt agreeing with the debtors to pay part of the debt within a given period. This should be in writing, and the rest of the amount is foregone. This should be in writing, and an individual should make sure that he/she raises the money on or before that date as failure to which will complicate the debt situation even further. This is also a tricky aspect when one includes the tax concept as the internal revenue Service’s (IRS) views forgiven debt as taxable income.
In conclusion, personal finances should be handling with a lot of caution especially when it comes to the aspect of debt and debt control. One should strive to leave within their means and incur as little debt as possible. Filing for bankruptcy is not a walk through the park and it does not mean one gets a free pass on debts owed. There are some that one will be required to settle like mortgages, car payments or even student loans just to mention a few. One has to pass an income test to determine if the individual is not able to pay on debts. One also loses property to the debtor as the court may deem them unnecessary and offer them as payment to debt collectors.
