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Unable to Manage Debts? How to Take the Right Financial Decisions?

Financial Decisions

Loss of income when you have too many dues in the market can make life seriously impacted. Mental peace, reputation, legal records, all gets disrupted when you start getting notices from your creditors for non-payment of dues, and recovery of dues and penalties. To bring things into the track, there are some financial decisions you may take. Three commonly taken steps by most debtors in trouble are bankruptcy, debt consolidation, and debt settlement. But which step you would take depends on many factors, which you must understand as you prepare to consult a financial advisor or lawyer. Accessing your situation, and finding out what fits for you is a prime requirement to deal with unmanageable debt.

Considering Bankruptcy

You would consider declaring bankruptcy when your situation may be like this:

  • Your debts are too high for you to pay and you have no funds at all or very meager income which hardly suffices for your basic survival.
  • You see no chances in the future to earn a sufficient income ever so that you may lead a good life and pay a lowered settled amount towards your creditors.
  • You do not care at the situation about your credit score or market reputation and reliability as the debtor.
  • You just need to get out of the situation at any cost.

But it’s good to keep in mind that declaring bankruptcy should be the last option for you, and should not be a healthy choice in the first place. Every person has some hope to get funds or earnings from any source, and you should also try so, and rather think of settling the debt than to give up.

Considering Debt Consolidation

Considering debt consolidation is an option when your situation may be like this:

  • You have multiple debts
  • You are paying high rates of interest for your debts and are looking for a low rate of interest loan to replace the current loans.
  • You are having trouble tracking the loans and their EMI payment dates and getting all the more confused with the debt management.
  • Often you are having trouble paying all the EMIs at different times of the month due to a shortage of funds or slipping out of mind.
  • You have estimated that you can squeeze out a certain amount every month to pay for a single consolidated loan in case you get one approved to pay off all the current dues.
  • You are ready to handle the debts and pay them off instead of escaping and want a reasonable fix for the situation.
  • You do not want your credit score to be affected any further for the nonpayment and missed dues, and you want to rather improve the credit rating in future.
  • You have a residence proof which shows you staying at the same address for at least six months.
  • You have a stable income which would help you apply for the new loan
  • Your credit score is not highly impacted and still shows a reasonable rating to get the loan approved.

If all the points above apply to you, then you are the right candidate for debt consolidation or put it this way, that debt consolidation is a good option for you.

Considering Debt Settlement

Debt settlement is the option for you if you are in the following situation:

  • You have one or more debts which are too big for you to handle
  • You struggle every month to pay for them
  • You have missed one or more payments for a loan, or you feel you are completely unable to pay in the days ahead.
  • You have no stable income, or your earnings are not sufficient to let you pay for the EMIs after deducting basic survival expenses.
  • You are in such a condition where you have become mentally or physically challenged and cannot work further to earn.
  • You have ample time at hand to wait for a settlement, and till that time you are not running away anywhere.
  • You know that your credit score has been affected due to your irregular payments of the installments, and yet you are not seeking an immediate improvement of the credit score through the settlement. Rather you realize and accept the fact that the credit rating will be impacted with time as the settlement goes from initiation to finalization.
  • You are preparing to arrange the lump sum amount to settle the dues after settlement and anticipate gathering the amount by the time the settlement proceeds.
  • You are ready to bear the expenses for paying the required fees to the debt settlement services.

When you see that many of the points above are true for you, then you may plan a debt settlement. In fact, unlike debt consolidation which is applicable only for multiple debts, a debt settlement is applicable even for one single loan if the amount is unaffordable for you. But some research work and feedback study must be done before you proceed.

Things to know before you go for debt settlement

Debt settlement is an important decision and needs to be taken care of by seeking the help of financial consultants and debt settlement advisors. You can choose a debt settlement service by going through other people’s reviews in your area. Services get their debt settlement ratings based on which you may choose one.

Also Read: Debt Settlement Programs will aid in Improving Your Financial Position

Things to know before you go for debt consolidation

If you are considering debt consolidation, then you must be sure that debt consolidation is possible only when you show a promising income to pay for that new consolidated loan with proper proof of residence and earnings. Also, you must have the minimum credit score to get the loan approved at a low-interest rate. You won’t need any agent or consultant ideally to go for the loan, but hiring one would be your personal choice. Besides traditional banks, there are websites and online banks through which you may apply to multiple sources for a debt consolidation loan.

Hello Readers, Welcome to BlogDada :) I am Pavitra Kumar, A Internet Marketer by Profession and A Blogger by Passion. Young active Blogger from India, Write about Blogging SEO Tips, Review of products and many more. This blog for anyone who runs their own blog or wants to Become A Blogger. Know More About Me.

1 Comment

1 Comment

  1. Inksplore

    September 28, 2018 at 11:43 am

    Hi Pavitra,

    Excellent article, love the way you have explained those financial terms. Debt settlement is a highly lucrative business, morgan stanley and other financial firms make millions of dollars from such recoveries. As much as motivational speakers punch about not going into debt, making a business survive in this extremely competitive world leaves no other option for a business personal other than to go under debt itself. Thanks for the post.

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Blogs

Food Delivery Apps– Take Best Coupons, Voucher Code from IndiaShoppers.in

Food Delivery Apps

For shopping lovers who wish to have everything on click for each need, these top delivery working very well for them as the user can browse, order, pay and get the food delivered at particular spot informed. Food delivery app today has given choice to select all nearby restaurants for all cuisine available whether you link Punjabi, Thai, North Indian or Fast food, they can offer you everything from favorite restaurants of your choice in affordable rates. IndiaShoppers gives you the opportunity to save extra bucks while you are ordering for food on mobile delivery apps like Swiggy, Faasos, Uber eats, Foodpanda, Dominos, Pizza Hut and a lot more to choose. While using IndiaShoppers will be beneficial as you will save time, by not visiting so many sites for food ordering where you have visit only one site IndiaShoppers where all the app stores are available to compare, make free registration at IndiaShoppers which will give awesome updates on all amazing deals and discount coupons available for these food delivery apps. Let’s check what delivery apps are where you can find your best food in your city from favorite restaurants:

Table of Contents:-

Swiggy

Ordering for food online through Swiggy really a great choice, as Swiggy have entirely great website as well as mobile which can offer you food from all international cuisines from top restaurants which is available near you, where you can choose top food chains like Burger Point, Subway, Dilli6 express, Behrouz Biryani, Pizza Hut or Dominos etc. Choose any payment mode to select best and quick delivery to you but don’t forget to take your Swiggy Coupons Code for IndiaShoppers have to awesome pricing for your Pizza or fast food is chosen. You will find any reason to IndiaShoppers as you can find everything at one stop only related to food ordering, as it will many other restaurants in your city with great offers.

Faasos

Getting rid of food deliveries, no response of delivery boy just give chance to Faasos which will amaze you with on-demand food ordering segment, with about 60 items on the menu. Where user can find almost top specialized Paneer Wraps, Chicken Wraps, Mushroom Wraps, Egg Wraps with amazing Faasos Coupons even available for Party Orders through IndiaShoppers.in. You can visit Faasos Coupons and offer section where all products are available with Kulcha, Chicken Kheema Bowl, Rice Tub, Mutton Bhuna Bowl and lot more exciting deals available for Faasos with IndiaShoppers.in

UberEats

Endless menu items from top big restaurants of India working nearby you like Chai Point, Food Expresso, Burger King, Biryani Blues, Behrouz Biryani, Stanley ka Dibba, The Lunch Box, Southern Junction, Crrysum, Giani, Wat a Burger etc. Uber eats offers you healthy food with amazing pricing and quick delivery. Started in few cities but counting increasing with great speed where you can get 100% amazing taste of restaurants of your choice. Just avail best Uber eats Coupon from India shoppers to have the right prices when you will order next time. Not only based upon the product you choose, there are lot more options to order online with amazing new users coupon codes or may be existing users will also be rewarded with amazing exclusive offer codes.

In the nutshell, in today increasing demand of food ordering online in each city for Students, Professionals or any family parties everywhere recommendable to choose IndiaShoppers only when you are going to place next order for food ordering, as it will reward you with extra cashback on top of every discount which brand is offering you. Really amazing deals to have IndiaShoppers with you for each need not only food it can also be used for e-commerce, travel, recharges, cab booking, utility bill payments, movie ticket booking and more way to save with being a loyal user of IndiaShoppers.in

Also Read: A Complete Guide on How to Start and Monetize Your Food Blog

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Blogs

Frequently Asked Question related to Demat Accounts

FAQs on Demat Accounts

Demat account means a way to hold securities in an electronic format. Similar to a bank account where you can transfer and receive money without using paper money, in a demat account, you can electronically buy and sell shares on the stock market without utilizing physical share certificates.

A demat account also serves as a safe deposit for your investment securities and holds various certificates of your financial instruments such as mutual funds, shares, bonds, government securities, and exchange-traded funds (ETFs) in a dematerialized form.

Now that India has embraced Dematerialization, it is essential for an investor to have a demat account before they start trading in Indian markets.

With this in mind, let’s take a look at some of the frequently asked questions (FAQs) about a demat account that every investor must know.

What Is A Depository?

A Depository is similar to a bank where investment securities are stored in a dematerialized, i.e., electronic format. There are two depositories in India namely National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

What Is A Depository Participant And How Can It Help Me With A Demat Account?

An investor can open a demat account with a depository participant (DP), which is an agent of the depository. According to the Securities and Exchange Board of India (SEBI) guidelines, banks, financial institutions, stockbrokers, custodians, etc., can become DP with a depository.

The services offered by the DP are listed below:

    • Demat account opening and maintenance.
    • Dematerialization of mutual funds and securities.
    • Rematerialisation of mutual funds and securities.
    • Transfer of mutual funds and securities.
    • Pledging, unpledging or invocation of securities.
    • Freezing or un-freezing an account.
    • Account modification.
    • Account closure.

How Can I Open A Demat Account?

There are certain steps involved in order to open a demat account.

  • Select a DP you wish to open your demat account with.
  • Make copies of required documents such as address proof, PAN card, income tax returns, bank statement of the last three months, passport size photographs, and a crossed cheque.
  • Fill up the account opening form and submit the copies of required documents as proof of address and proof of identity as per SEBI guidelines. Along with the form, you also need to present your original PAN card at the time of opening the demat account.
  • Following the form submission, the DP will open your demat account in their system, and generate a unique account number, also known as BOID (Beneficial Owner Identification number). You can use the BOID for all your future transactions with the broker.

What Are The Essential Features Of A Demat Account?

By holding your securities in a demat account, you can achieve the following:

    • A demat account can eliminate forgery as manipulating paper is easy but shares can’t be forged electronically.
    • By using a demat account, you will ensure that all your investment securities are collected safely in one place meaning no loss or misplacement issue.
    • With a demat account, your securities are permanent and recorded digitally, thereby omitting the chances of paper decay or ink erosion.
    • All the transactions made are hassle-free and less cumbersome since you don’t need to carry physical certificates every time you trade to the buyer of the seller.

How Many Demat Accounts Can I Have?

An investor can open more than one demat account. Moreover, one demat account can be utilized to track multiple trading accounts.

What Are The Brokerage Charges And The Annual Maintenance Fee Involved In A Demat Account?

Brokerage charge is the amount that you have to pay when you buy or sell shares. The charges could either be levied in the form of a percentage or a fixed amount. For instance, if the brokerage fee is 0.5%, then you will have to pay 50 paise every time you purchase shares worth INR 100. The charges are different for trading in financial markets and mutual funds.

The annual maintenance fee can vary between INR 500 and INR 2,000, depending upon the agents and the services they provide.

Additional charges such as demand charges (the fee to dematerialize stocks in paper or certificate format), advisory fee, and ad-hoc account statement fee can also be levied.

Can A Person Operate My Demat Account On My Behalf?

You can authorize any person to operate your demat account by executing a power of attorney (POA). However, it is necessary to submit a notarized copy of the POA to your DP.

Since the inception of demat account, trading has become an easy avenue for investors to earn profits. Moreover, you can make transactions at the click of a button, at your own convenience!

Thus, opening a demat account is worth it and would be valuable in numerous ways for your trading and investment pursuits.

 

Additional Reading:-

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Business

Business Ideas with Low Investment

Business Ideas with Low Investment

For a country to prosper, it is crucial that its small and medium businesses thrive without any government support. Today numerous people are looking for starting their own business instead of working for a company with a regular 9 to 5 job. It doesn’t matter what educational qualification you have or whether you are currently employed or unemployed. Anyone who wants to spring their own business can read this article to know Business Ideas that they can start with an investment with low investment.

1. Food Truck

Easiest and profitable business to start is a food truck. In India, Food Truck business is growing in high rate. You can quickly begin this business with an investment amount of Rs 1 lakh. A significant chunk of your investment will go into getting licenses and permits. Other expenses like procuring raw material and the commercial vehicle wouldn’t cost that much. You can rent a four-wheeler as you don’t have to buy. As far as human resources concerned you along with 2-3 members of your family would be enough for Food Truck business. You can collaborate with some vendor for a discounted price on raw materials.

2. Food Catering Business

You can start a food catering business if you find food truck business difficult. Here you prepare various dishes on order and then deliver it to customers at their doorsteps. You don’t need an exclusive license or permit like Food Truck business, and you can also start tiffin services.

However, you do require a catering license. For occasions like marriage, birthday parties, anniversaries, and many people will order dishes from you, and you need to deliver them. To get started you need a kitchen, raw materials, few staff members and a budget for marketing (like distributing pamphlets and sticking bills).

3. Tea Stall, Fruit Juice Kiosk and Snack Joint

This is a trendy business idea under 1 lakh. You don’t need anything extra to know about starting a tea stall or a fruit juice shop or a snack joint. Important things to get started are Choosing the right location, Raw material, Rent a Space. Also, you don’t need any extra license is the best part of this business.

4. Tailoring and Laundering Business

Tailoring and laundering business requires a meager amount of investment. For opening a tailoring shop, you need a few sewing machines and a staff of 3 to 4 people. You can also launder and iron clothes. Tailoring and laundering business is straightforward to get started.

5. Newspaper Distributor

Newspaper Distribution business is a profitable business. A newspaper vendor earns a profit of 30% – 40% commission for per copy. As a newspaper vendor, you have to collect newspapers from distributor early in the morning by paying cash upfront and delivery of the newspapers on time. you

6. Pest Control Services

Pest Controllers demand is growing from homes and commercial buildings which have made Pest control service a very lucrative business. If you can establish a client base, then your business can thrive in a short period.

7. Human Resource Services

If you have worked for Multi-National Companies, then you would know the importance of hiring the right kind of employees. As an HR (Human Resource) firm, you can tie up with various MNC’s and help them to recruit the right type of employees with necessary skill. You get a commission on each hiring. To start an HR business, you don’t need much, just office space and a budget for advertising in various newspapers.

9. Day Childcare

Nowadays in cities, Parents are too busy and can’t look after their child on their own during the daytime. Hence, they need someone who can take care of their child also educate them while they are out. So Day childcare is one of the best business options with low investment.

10. Tuition and Hobby Classes

Tuition classes which are also known as coaching centers are ubiquitous all around the country. You can start taking classes for students of all the level from 1 to 10 or even 10+2 or however you want. Apart from regular courses, you can also teach singing, dancing, acting, painting and other hobbies in which students are interested.

Final Words:

So these were some of the business Ideas which you can start with a minimum investment. The new age of business demands low Investment Business Ideas with maximal financial gains. With the modern economy and new business innovations, even the small players in the game, with little in their hand to start up a business, can fare quite well. Small business ideas, with low financial requirements, however, they need you to think outside of the box. You will also need to register your business under Private Limited Company registration, LLP registration or any other business entity Once again I’m reiterating that you should consider a business according to your experience in a given line of work.

Must Read: Why is it Essential for You to Build Your Brand?

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