Top Debt Management Flaws

Today millions of people carry debt burden upon their shoulders. These can be house loans, credit card debt, mortgage, student loans, personal loans or some other kind of debt. Although most people make so much effort to get out of the debt trap but many of them falter on the way but it simply doesn’t mean that it’s the dead end and the trap stays permanent. One could get out of the debt jail by simply following a flawless debt management strategy. Below listed debt management mistakes can be avoided by adopting a skillful debt management strategy to tackle the debt web and make use of the debt more efficiently.

Over relying on creditor’s word

Students and professionals seem to be unaware of the existing policies regarding debt and tend to believe on what their creditors have to say. Lenders generally are in search of such kind of debtors who are not aware of the monetary policies prevailing. When you are evaluating your situation, it is advisable to do some research on your own or to seek advice from reliable alternative sources to ensure you fully understand your options and other perspectives as the loan providers have priorities different to yours.

Failing to learn about new repayment options

There seem to be changes occurring each year in the federal student loan programs. Unfortunately, borrowers are unaware of eligibility requirements and benefits of these programs and therefore, some borrowers who qualify are not actively taking advantage of these programs. Understanding the details of these and other programs is important as they can provide you significant cost savings if implemented properly.

Excessively forbearing debts

Graduates during their internship and first year of job tend to delay their repayments thinking that it’s the only option available to them. Instead they should realize that accruing interest on such non payments is not a healthy option.

Excluding oneself from tax rebates while filing tax returns

Tax returns when filed result in imposition of higher tax burdens and lack of awareness as far as the rebates on student’s loan is concerned.

 

  • All the debt being treated equally

Student loan borrowers often treat all of their student loans the same during repayment. Many borrowers set up a standard payment plan and use automatic debit, essentially putting repayment on cruise control until their debt is retired. The alternative to the above repayment is to implement a targeted repayment plan that lowers the interest cost of a borrower’s debt portfolio by retiring the higher interest rate loans more quickly.

 

  • Not opting for debt councilors

Most professional graduates neither have the time nor the resources to manage it appropriately at such a critical point in their career. Working with a trained financial professional, such as a tax accountant or financial planner familiar with student loans, is highly encouraged in order to ensure you make the appropriate financial decisions regarding student loan repayment

  • Use of emergency fund

Emergency Fund is primarily developed to manage a financial crisis. It is meant to fund an emergency. Using up emergency fund is not a wise step at all. Although you can manage the debts but it empties your fund made for an emergency.

 

  • Falling to the minimum payment trap

It might seem that by paying the minimum amount you are managing your debt, but the fact is that it does not help to reduce your debt burden in any way. The interests and charges keep on piling up. You must understand that by paying just the minimum payment you cannot simply get out of the debt.

  • Credit reports given no due importance

Credit reports and statements are instrumental in determining your overall debt obligations. So, if you go onto ignore your credit report and statements, you can never manage and devise a strategy for meeting your debt obligations and it will not make you any richer.

 

  • Credit card debt well neglected

Most of the people that have multiple debt obligations tend to neglect the credit card debts. Although it is advisable to pay off the high interest rate debt first but the amount on credit card debts keeps on piling up unnoticed. A very healthy step in that regard would be to avoid the use of credit cards by using simply cash or debit cards.

 

  • Inability to plan debt management

You have to be clear, precise, and accurate in your debt management. With no clear debt management action plan, you invariably end up being a loser. You suffer financial losses that could have been easily saved. One should not enter the playing arena with close eyes and proper economic planning in that regard would be highly beneficial.

 

  • Bad debt largely accumulated

Spending on stuff like a home theatre system or an expensive vacation trip would largely accumulate your bad debt and these unconstructive expenses would engage yourselves in debt burden. To provide relief from it one mustn’t waste the resources and utilize it to a more productive option.

 

  • Non budgeting

Budgeting and writing down expenses during academic life has proven to be an important way of managing the debt and it has been observed that students tend to neglect budgeting and take on things as they come which results in disastrous upcoming life. Budgeting should be stressed upon especially by the students so that their tuitions and weekends are compromised.

  • Buying while keeping future income in mind

What one would become simply doesn’t mean one should start buying and making expenses by keeping their future in one mind. It’s the present that matters and not keeping that in mind is a big debt management mistake. Buying an expensive place or car by keeping future income in mind can never be safe as if doesn’t materialize you would end up in a calamity so play safe and secure.

  • Delay in payments or simply not paying

Debt payments should be made accordingly as they become due. By avoiding or simply not paying would definitely not relax you from debt burden but it will nothing but accumulate the interest making your debt fatter than ever!

Final word:

By keeping all these flaws in mind one could effectively manage the debt and make oneself comfortable while still being in debt.

 

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Best Global Destinations for Finance Career

Almost every city having significant urban population offers opportunities in finance. However, there are some cities that are more suitable for a job in finance owing to the clusters of financial companies that have made these cities their base.  Most of these cities are globally renowned for more than one reason. Here are the top global cities for those looking for different opportunities in finance:

The world has grown in a more livable place over the course of human civilization. However, some cities have been the pivots of this growth, always favored by the humans owing to the advantage offered by them in terms of their geographical location, weather and other natural factors. Over the years, these cities have grown into commercial hubs, attracting more and more migrants from nearby and distant places looking for an opportunity to earn their living.

Evolution has accorded these cities special status in terms of their financial prowess. Here are the four cities that offer the best opportunities for finance graduates:

Best cities to take up finance jobs in

New York, USA

New York is the ultimate dream destination for anyone looking at a stint in the field of finance. Besides its world famous bridges, skyscrapers, and parks, New York City has what is the holy grail of financial enthusiasts, the Wall Street.

Anchoring the city in Lower Manhattan, Wall Street houses the New York Stock Exchange, the world’s largest stock exchange by total market capitalization of the listed companies.

It doesn’t come as a surprise that the city is commonly regarded as the finance capital of the world. It headquarters some of the largest investment banks Goldman Sachs, Merill Lynch and Morgan Stanley.

When it comes to living standards, nothing beats New York. It has the greatest landmarks which have been photographed a zillion times. The cost of living has also increased owing to rise in rental accommodation and New York is now 8 places up, ranking 16 in the 2014 Mercer Cost of Living Rankings.

 Tokyo, Japan

The capital of Japan is the most populous metropolitan area in the world along with being the largest metropolitan economy globally.

The city is a vital international finance center, a home to headquarters of a number of major investment banks and insurance companies.

Experts call Tokyo as one of the three command centers of world economy, London and New York being the other two. The city houses Tokyo Stock Exchange, which is Japan’s largest stock exchange, and the third largest in the world by market cap.

Who would not try and make a financial career here? 51 of the Global 500 S&P companies are based here, a highest for any city in the world, and almost twice that of the second-placed city.

Tokyo is accorded the status of alpha+ world city, and as per Mercer 2014 City Cost of Living rankings, is placed 7th.

London, United Kingdom

London is another financial powerhouse, with a large fraction of experts arguing it to be the rightful financial capital of world. The city has been a major human establishment for more than two millenniums, with its history and glory going back to the time when Romans were the most powerful tribe in the world.

Situated on the banks of Thames, the city is currently capital of United Kingdom and also its most populous city.

London is purely a financial city, with its largest industry being finance and its financial exports making it a large contributor to the UK’s balance of payment. Until mid-2007, the city had almost 325,000 professionals employed in financial services.

There are 480 multinational banks in the city, highest in the world. Over 50% of the UK’s listed companies and 75% of the Fortune 500 organizations have offices in London, making it a job seeker’s paradise.       As per the Mercer 2014 COL rankings, London is 12th in the list.

Dubai, UAE

One of the fastest growing cities in the world, Dubai is already the financial capital of Middle East, and is rapidly growing to become a globally powerful center of finance. A number of international financial institutions are queuing to open their staff regional offices here.