LIFE AFTER BANKRUPTCY

Legal Disclosure: Tony Robbins is a board member and Chief of Investor Psychology at Creative Planning, Inc., an SEC Registered Investment Advisor (RIA) with wealth managers serving all 50 states. Mr. Robbins receives compensation for serving in this capacity and based on increased business derived by Creative Planning from his services.

Because they feel like they’ve failed, many people subsequently subject themselves to frequent internal beatings, telling themselves over and over again that, “You are a failure.” The problem is that this internal propaganda will eventually convince you of its truth; you will adopt the identity of a failure.An unexpected job loss, a medical emergency, a divorce, out-of-control spending or an unscrupulous business partner – there are a great deal of things that can lead to bankruptcy. However, whether your financial crisis was avoidable or not, most people dealing with bankruptcy struggle with feelings of anger, guilt and shame.

This identity does not serve you or the people you care most about, it serves only as a self-fulfilling prophecy. In reality, everyone has failed at something, at some time, but that does not mean that they were failures. Abraham Lincoln went bankrupt at age 24 (amongst other ‘failures’). Walt Disney, Milton Hershey, Henry Ford and Stan Lee also went bankrupt before going on to build empires of imagination and wealth.

“Eighty percent of success is psychology – the other twenty percent is mechanics.”

– Tony Robbins 

There is plenty of helpful information out there that tells you how to rebuild your credit; however, creating breakthrough in your finances starts with your emotions.

Image©Syda Productions/shutterstock

CREATING BREAKTHROUGH

As Tony recently told Business Insider, “Emotions are a habit.” You have to train your mind daily, even moment by moment, to cultivate the emotions you actually want to keep and ignore the voice inside you hurling unhelpful accusations. This is the daily practice you must put in to develop a positive emotional home, but what if you need a massive change, right now?

If you are ready for a breakthrough, these are three things you need to change (in reverse order of importance).

1. Strategy

Good strategy is essential – it can literally turn what may have been decades of learning and implementation into days. If you’re looking for financial breakthrough, this is where rebuilding your credit and applying practical methods fit in. But, believe it or not, strategy is not the MOST important thing. Strategy is the 20% of the 80/20 rule, because it is just the mechanics.

Image© Zhao jian kang/shutterstock

2. Story

The story that you tell yourself over and over again about your life and your finances is what has kept you stuck, because now you believe that story. Honestly, it doesn’t even matter if that story is true because you can give the truth new meaning. It’s like the story of the little boy who received manure for Christmas and ran around the house, full of glee, looking for the pony. The truth was he received “crap,” and he could have created several meanings for that. But the meaning he chose to believe was that if he was given horse excrement, there must be a horse, too!

Is this bankruptcy the end of your life? Or is it a rebirth? If you don’t change a disempowering story, then you’ll come up with excuses about why you can’t access the strategy, or if you obtain the strategy, you won’t take massive action to follow it.

3. State

This is what really changes it all. Changing your physiology vitally changes your emotional state. A Harvard study showed that power postures held for just two minutes can reduce the stress hormone cortisol and increase testosterone, making the ‘poser’ feel more confident. The quickest way to change how you feel, to change your ‘state’, is to move!

Bankruptcy is not the end; it is merely an obstacle that you are capable of overcoming, ending up stronger than you were at the start.

Team Tony

Team Tony cultivates, curates and shares Tony Robbins’ stories and core principles, to help others achieve an extraordinary life.


Source: https://www.tonyrobbins.com/wealth-lifestyle/life-after-bankruptcy/

Tips to Effectively Pay Off Your Debts

Outstanding debts can inflict severe dents in even the best retirement plans which have been carefully crafted over a lifetime. Incurring a debt is seemingly unavoidable in the modern age, as a result of both higher cost of living and consumerism.

With each passing year, more and more Singaporeans are diving into the debt pool as they struggle to cover their daily expenses and make ends meet. As of December 2016, the average Singaporean household incurs an estimated $55,000 of debt, which is a 3% increase over 2015. Easily 75% of this household debt stems from unresolved mortgage loans. Some of this unsettled debt may even force retirees to expend their assets to cover their debt rather than passing it on to their beneficiaries.

However, there are several ways to effectively settle outstanding debts to ensure it doesn't put a crimp on some of those best retirement plans you've come up with.

1. Establish a Budget and Track It

Creating a proper budget is a great way to analyse and plan finances. By allocating a set amount of money towards a specific expense per month, the amount of expenses can be monitored more stringently and precautionary steps can be swiftly undertaken if the expenses overshoot the stipulated budget. It is only through proper budgeting can individuals or households create the necessary surpluses to pay off any existing debts.

Certain financial tools, such as Excel spreadsheets or even Mint.com, are particularly useful in keeping track of a personal or household budget.

The main problem for an individual who does not keep track of his/her monthly expenditure is that he/she does not know if he/she ends the month with a net reduction in savings, i.e., spending exceeds income and eats into savings. Knowing the amount of leftover balance is crucial since a continuous negative balance might lead to the creation of new debts. It is this type of debt that is the most dangerous as it rolls over at seemingly manageable interest rates month after month. Before the individual knows it, he/she would have made hefty payments on interest alone.

Tracking tools are thus crucial in identifying areas of weakness in one's monthly spending habits, but an individual must take affirmative action to reverse the negative balance situation. This can be done via listing out the monthly expenses and employing necessary cut backs on certain expenditures. Discipline is the key.

2. Laddering Debts by Interest Rate

Laddering debts is another technique used in settling outstanding debt. It involves listing out all current debts by interest rate, starting from the highest interest rate to the lowest interest rate. The debt with the highest interest rate costs the most money, so this debt needs to be settled first.

By paying off the most expensive debt first, the overall debt will be reduced significantly faster. Some individuals who incur multiple debts per month and employ laddering in their finances usually settle the minimum payment required for each debt, and use the balance cash from their payments to settle more of the debt with the highest interest rate.

For example, let's compare two debt instruments: one, a credit card with an outstanding balance of $4,000 with an interest rate of 24% and another, a credit line with an outstanding balance of $8,000 with an interest rate of 16%. Ideally, the minimum monthly payment required to settle each debt would first be made, and any leftover finances would be funneled to repaying more of the credit card debt even though the amount owed may be lower.

Laddering is especially useful in tackling multiple debts while avoiding the accidental creation of another new debt. Laddering also instills a sense of financial discipline that is good in tackling unresolved debts and preventing those debts from inflicting too much harm on those retirement plans you've kept in mind.

3. Balance Transfers

Balance transfers is another tool used to cut back on interest expenses whilst settling an attempt to pay off a debt over several months.

For example, given the competitive nature of the unsecured credit market, banks often provide very low teaser rates for clients who transfer their existing unsecured debt from other banks. The effective interest rates could be as low as 4% p.a. versus the normal 24% p.a. one pays on credit card balances. However, the catch is such promotional rates lasts only for a certain period, for example 6 months. Nevertheless, balance transfers can lower the interest costs of an existing debt.

Balance transfers do carry their own risks. Individuals transferring balances must remember to either settle the debt after the transfer or look for another such opportunity before the lower interest on the account to which the balance is transferred expires, otherwise he/she risks paying an even higher interest rate.

Individuals using the balance transfers may also fail to address the continuous build-up of debt, thus wiping out any benefit from such a strategy. In the end, despite this cost-saving strategy, individuals end up with even more debts that impinge on savings, not to mention any future retirement plans.

4. Contacting Consumer Credit Counseling Services

If a person is having immense trouble settling their debts or even coming up with the minimum monthly payments, they should consider engaging a consumer credit counseling service. In Singapore, this service is aptly named as the Credit Counseling Singapore ("CCS") and offers solution-based credit counseling for individuals beleaguered by financial debt.

The CCS's debt management services only cost $130 and pairs up debt-laden individuals with a credit counsellor. The credit counsellor will assess the indebtedness of an individual's situation and assist him/her by making a financial estimate of the debts owed, identify available resources which can be used to cover the debts and even plan a monthly budget which incorporates all living expenses. Solutions to tackle the debt problem and monthly negative balances will be meted out to alleviate the burden of debt.

If one is concerned over how his/her debt would affect his/her retirement plans, contacting the CCS would be the right way to go. If the retirement plan has already taken the old debt into account, proper financial restructuring could reduce the interest and installment payments that need to be made.

Even the best retirement plans may be in jeopardy in the face of unresolved debts. By adopting better financial habits such as establishing a budget, laddering debts and transferring balances, an unsettled debt situation might become easier to handle. If a debt problem persists, the CCS can be engaged to work out a solution to stave off unresolved debts. Financial advisers may also be consulted to better streamline finances and handle monthly expenses, thus ensuring a more secure and better retirement in the future.

Financial Alliance is an independent financial advisory firm that provides its clients with sound and objective financial advice to protect and grow their wealth. Providing top-notch services to both corporations and individuals, Financial Alliance is a trusted brand in Singapore and has been navigating its clients' financial future for 15 years. For more information about Financial Alliance, click on the link: http://www.fa.com.sg/.

"Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice that is customised to their specific financial objectives, situations & needs."

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Obtaining a Loan With a Bad Credit Profile

Most people need to apply for credit from a financial institution at some stage of their lives, whether it is to buy a home, furniture or other necessities. Some people may find it easy to obtain that loan whereas others may have trouble to qualify for credit. Many clients may want to apply for loans with a bad credit record.

No two clients share the same financial background. There are various reasons why certain clients may be considered to be less credit worthy, and therefore regarded as more risky in terms of credit worthiness than others. Some may have defaulted once, others more than once, some may have credit judgements against their names, whereas others may even have become insolvent.

In order to qualify for any type of credit, a client has to meet certain lending criteria. Financial institutions make their decisions based on a client's credit record, his or her past performance in terms of paying back debt. To obtain loans with a bad credit record, is more difficult than getting finance with a clean, or good, record.

Therefore financial institutions such as banks and other lending firms will look more carefully at a client's credit history before agreeing to lend them money. Every client's past credit history is checked carefully and based upon past performance the institution will either lend the client money or refuse them. They will look at various issues that may influence their decision.

Your credit record is one of those; they may also consider all public records that could influence your profile, as well as all past financial account information. Therefore bad credit loans are not easily obtained. Some institutions will also check whether or not you have any serious defaults against your name, such as a home or car repossession for example.

However, all may not be necessarily lost, since some institutions may consider loans to clients with negative or bad credit records. It depends on who you get in touch with. There are some institutions that understand people sometimes experience bad times and may find it difficult to honour the repayments on their debt.

They understand that clients may be rehabilitated and build up credit worthiness again in future. Bad credit loans are therefore not so unusual, because certain lenders understand that many clients with a bad credit history may be able to turn their financial position around and may be able to service their future debt.

This applies to various categories of debt, whether the client wants to borrow money for personal reasons to acquire some essential items or to buy materials to update his house, for example. These personal loans are considered in many cases and obtained by clients.

The same may even be true for the client who needs a cash injection to keep his business going. Lenders look at every case individually. Bad credit loans are granted more often than people realise, because certain lenders actually specialise in assisting clients with a bad credit history.

Of course clients with a less positive credit history will pay more for their loans and their repayments will attract higher interest rates since lending companies want to protect themselves. It is not considered to be a personal issue; it is simply standard industry practice.

Every case is considered on its own merits and different clients are treated according to their specific profiles when loans are considered. That is why bad credit loans may be charged at higher than normal interest rates.

Once a client finds that it is too difficult to obtain a loan the traditional way, they should look at those lenders that may consider doing business with them even though they are considered high risk.

These lenders advertise their services in the press and also on the internet where their websites often explain in detail how they assist clients. Another popular source these days is the broker who acts as a middleman and introduces the client to lenders. This broker puts the client in touch with the most likely lenders who may be able to help them with a loan.

About Us

At We Find Any Loan we help clients to get in touch with money lenders that can assist them with loans, even when they believe they do not qualify for credit. Although we do not act as money lenders ourselves, we introduce clients to Monevo Ltd. who works with a panel of lenders. They study every client's profile thoroughly and make a quick decision about credit. Various types of credit may be applied for through our online service that uses Monevo's advanced technology to match clients with possible lenders - all in a matter of a few minutes. Our free introductory service is available to UK residents only. For more about us and our services, please visit http://www.wefindanyloan.com/

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10 Money Management Tips

Check out these 10 great money management tips to help you manage and get out of debt fast!

5 Important Tips to Get a Personal Loan Approved

You might have a smooth running life, but that in no way means that there won't be a problem with you. You can face an emergency situation at any point of time. So, for that, you need to be careful enough. A loan at this point of time can be a savior for you. It can help you meet a financial crisis. Through a loan, you are going to get some cash that will be helpful to meet the personal needs. But getting a loan is not that simple. There are certain steps that you need to abide by so that your loan plea gets approved.

Check the Eligibility Criteria

Most of the loan providers do have an eligibility criterion. Some prefer the borrowers to be within a particular age group, generally between 21 to 65 years. Another thing that they might be checking about you is a minimum amount of earning per year. Maintain that you are not a defaulter on any of your previous loans or credit card bills.

Verify Your Credit Score

A credit score is what the lenders are going to determine before they give you a loan. So, before you apply for the loan check for the credit score so that the loan plea does not get rejected. If your scores are not good enough rectify them. This will increase your chances of getting the personal loan approved and also might fetch you attractive interest rates.

Provide Genuine Details

When you are applying for the loan, make sure to provide all details that are true to the best of your knowledge. The lenders will doubt your intentions and will cross check everything. They might consider visiting you or giving you a call personally to verify the information you have provided. So, giving them genuine details will increase your chances of getting the loan approved.

Avoid Several Applications

Aim for a realistic loan amount that is payable by you. So not ask for huge amounts because in that case the plea might get rejected. Another mistake that most people make is applying at several places. The lenders will doubt your intentions and your probability to get the loan approved will be reduced. Also, multiple applications will affect your credit scores.

Have a Stable Source of Income

Having a stable work history is sure to impress the lending institutions. If you are having a minimum of two years of experience that will be an added advantage. Try to avoid switching jobs and maintain a stable source of income.

These are some of the factors the loan providers take into consideration. So, before you apply for a personal loan, consider having a proper knowledge about the terms and conditions and work according to get the loan approved.

To know more about personal loan interest rates, please check our website.

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How To Achieve A Debt Free Lifestyle

Having too much debt seems to be a problem that a lot of people today are facing. Debt can be crippling because, the deeper you get into it, the harder it is to get out. The problem is compounded by the fact that having a lot of debt, especially unsecured debt like credit card debt, is more expensive if you have a bad credit score.

If your debt situation is particularly severe, you may be asking yourself how you can get rid of debt. The first thing to do to get rid of debt is to admit that you are facing a serious problem that needs your full commitment in order to resolve it. Here are steps to being debt-free:

Figure out how much debt you really have

First, you need to do what you should do whenever you face any serious problem: determine the nature of the problem and how bad it really is. In other words, you need to take careful account of your debt situation. When in debt, especially if you have multiple sources of debt, it can be tempting to avoid facing the truth about how much you really owe altogether. So, sit down with a piece of paper or a computer spreadsheet and simply add up all of your debt. The number you come up with is what you will target to become "zero" in the very near future. Imagine the relief you will feel when that happens!

Put your debt into categories

As you add it up, put each type of debt into its own category. The reason for this is that different types of debt should be treated differently. Examples of relevant categories include credit card debt, department store card debt, mortgage, second mortgage, auto loans, and equity lines of credit. Also, if you have multiple credit cards, for example, be sure to list each one separately.

Arrange in order of which to pay off first, by interest rate

Now, next to each debt instrument you have, write down the amount you owe and the interest rate for each one. Most likely, your credit cards will carry the highest interest rates, for example. Now, re-copy your list in the order of highest to lowest interest rate.

Pay off one at a time

Put together a plan to pay off each of your cards, one at a time. Each month, start by making the minimum payment on each of your cards, except for the highest-interest card. For that one, pay it down as much as possible each month. As you successfully pay down each card, you will get a feeling of accomplishment that will encourage you to keep fighting your debt monster until it is completely dead. By paying off the highest interest cards first, you will be freeing up more money each month to pay down your remaining debt faster.

Work on your credit score

One of the smartest ways to get rid of debt that many people overlook is to take the steps necessary to improve your credit score. You could potentially save a lot of money per year in interest payments simply by improving your credit score. The reason is, a better score will mean you will be eligible for lower interest rates, and it is the high-interest rates associated with debt that keeps people in debt longer.

Buy what you can afford.

If you are an individual who wants to have a debt free lifestyle then you shouldn't spend more than you earn each month. You should use a credit card and think of it as a useful tool to help you pay for things that you can pay off at the end of the month, but not consider it as an extension to the amount of money that you have to spend.

Debt counselling.

This involves working with a real professional debt advisor. They can show you various methods and possible means you can take to become debt free. An advisor can guide you while lending their knowledge of each step of the process. You will be able to choose the one most suitable for you.

If you are looking to get a debt-free lifestyle then you will need to keep track of and know what your finances are, and you will also need to resist the temptation to spend more than you have. You should also ensure, as time passes, that you are reducing the amount of overall debts that you have, even if this process is very slow.

For more information visit [http://www.debtfreeplace.com]

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