finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

Bankruptcy is a legal process that relieves you off your debt for some time, but in the long run, declaring bankruptcy can have a very serious effect on your credit report and remains for almost 7-10 years on your report affecting your ability to get loans in the future. So, I am going to present you with four alternatives that can save you from bankruptcy. Going for one or all of these options is definitely better than going bankrupt.

1. Enter an IVA Program

An IVA is an individual voluntary agreement that is a legal binding contract between you and those you owe money. After you have signed an IVA, you get a period of time, usually 5 years, during which you can pay off the debt you owe. It prevents all the creditors from taking any action against you. The best thing about an IVA is that you get to keep your home and personal items. Over the past few years, IVA’s have become a lot more popular. If you want IVA help and information, head over the link and learn more about it.

2. Sell Some Assets

Paying off debt should be your foremost priority. Sell whatever you have in excess and whatever you can live without. If you notice that you can’t keep up with your payments, immediately take action. Many people think that they can’t live without luxurious things, but in the long run, you will understand that it is only temporary and things will get better.

[ymal]

3. Talk With Your Credits

Now I know this sounds crazy, but hear me out. Most creditors would rather get some money from you than getting none at all. Bankruptcy affects your creditors as much as it affects you. If you talk with your creditors before filing for bankruptcy and let them know that you are having financial difficulties they might listen. Most creditors have special hardship programs to assists you in your time of need. Ask them if they can lower the amount of monthly payments or lower your interest rate. Believe it or not, you can sweet talk you way out of bankruptcy.

4. Get Help from Friend and Friendly

Borrowing money from friends and family is a very bad idea, and it should be your last resort. Money has the power to create misunderstanding between lifelong friends, so you should be very careful. Calculate how much money you need and how much money can you pay off on your own. Never take more than what you need and pay up as soon as you can. Most importantly, before asking them for money, you should have a clear plan on how you are going to pay them back. Your family and friends will happily help you but don’t take advantage of their kindness and earn their trust for the future by paying them what you owe without them asking for it.

If you are hitting your fifties now, and you don’t have a pension pot or any savings, you’ll be pleased to hear it’s not too late to do something about it.

In fact, it is never too late to start saving for old age. Obviously, the sooner you get started the better, so why not make that now?

In this article, I’ll be looking at some of the pension and saving options for late starters. Whether you’ve just hit the big five-oh milestone, or you are creeping towards retirement, there are still ways to build a savings pot and make your money work better for you,whether that’s through a pension, learn from an investment blog or otherwise.

First up let’s take a brief look at the State Pension.

What pension will you get from the State?

The State Pension is a regular payment from the Government you can claim when you reach State Pension age. The amount you get is based on how much you have paid in National Insurance contributions.

The State Pension age has undergone radical change in recent years. Women used to be able to get the State Pension at age 60, and men at 65. From November 2018, both men and women have to be 65, but this is gradually increasing, depending on when you were born. The State Pension age will reach 67 for both men and women by 2028. It could change again in the future.

The full amount of the current State Pension is currently £168.60 per week. Check how much State Pension you could get here.

A pension is actually a tax-efficient way of saving money

Independent Financial Adviser (IFA) and pensions specialist Adam Reeves, says “No matter how old you are it is never too late to think about financially planning for your retirement and paying into a pension scheme. It is actually a tax-efficient way of saving money.”

If you are a UK taxpayer, you will can get tax relief on pension contributions of up to 100 per cent of your earnings or £40,000 annual allowance (whichever is lower).

Pension tax relief is paid at the highest rate of income tax you pay, so for basic-rate taxpayers it is 20 per cent, for higher-rate taxpayers it is 40 per cent and for additional-rate taxpayers it is 45 per cent.

What does this mean? If you are a basic-rate taxpayer if you contribute £100 from your salary into your pension it will only cost you £80 – the government pays £20 (the tax you would have paid on the £100 of your salary). Higher-rate taxpayers benefit more.

See more about tax relief on pension contributions here. As you can see, the tax relief available on pensions is particularly attractive to higher earners and additional rate taxpayers.

[ymal]

What is a private pension?

Sometimes called a personal pension, and commonly referred to as a ‘Self Invested Personal Pension’ (SIPP), a private pension is a type of investment scheme. You make monthly or one-off payments into a pension plan. Your pension scheme provider adds tax relief to that. The money you put in to the pension plan is invested in a range of assets, such as bonds, shares, property and cash.

How much you get from your pension plan will depend on how much you save, how it is invested and the type of pension plan you have.

It is important to seek independent advice when considering any pension scheme or other form of investment as there are risks. The return on your investment can go down as well as up.

Workplace pension schemes

If you are working in the UK, are aged 22 or over, are under the State Pension age and earning more than £10,000 a year, then you are likely already signed up to a workplace pension scheme (unless you have opted out).

Many workers are now covered by pensions auto-enrolment. This is a government scheme to help people save for later life.

Since 1st February 2018, all eligible workers in the UK must be enrolled in a workplace pension scheme. The amount you and your employer contribute has been increasing since the scheme was introduced. From 6th April 2019 your employer pays 3 per cent of your qualifying earnings and you pay 4 per cent of your qualifying earnings.

If you have previously opted out, you can rejoin, but your employer only has to action one request from each member every twelve months. See more about rejoining your auto-enrolment workplace pension scheme here.

What are the alternatives?

As well as considering a private pension, there are lots of other money-saving tips for over-50s. Now is the perfect time to give yourself a money makeover. Any savings you can make in your expenditure now can be saved for your retirement.

ISAs are another tax-efficient way of saving money. The term ISA stands for Individual Savings Account. It essentially allows you to save money tax-free. See if an ISA could be right for you here.

Widespread confusion about cancer symptoms among employees could be leading to delayed diagnoses and irregular self-examinations according to new research by Bupa UK.

One in two people in the UK will be diagnosed with cancer in their lifetime, however 53% of employees in the financial services sector are confused about what to check for when it comes to common cancers such as skin, bowel or lung.

The study found over half (56%) also say it is hard to remember the warning signs or physical changes they should look for. As a result, a third (32%) of employees have never checked themselves.

This confusion is one of the significant factors that could delay diagnosis. One in five (19%) employees said they have delayed seeking medical advice about a symptom as they “didn’t realise what to look for”. But for a fifth of these people (4%), this symptom was later diagnosed as cancerous.

Additionally, a third (35%) of those across the financial services sector would worry about taking time off from work to have a symptom checked.

Being able to recognise if something is wrong is important for improving survival rates, which is why Bupa has created a simple Cancer Check-CUP guide, which can be incorporated into health and wellbeing guidance for employees.

If someone experiences all three signs they should get medical advice.

Change:

Is something about your body different or unusual? Is something new, or does something feel ‘wrong’ to you? Trust yourself to know what is right and wrong and seek help.

Unexplained:

Can you pinpoint why something has changed, why you are feeling physically unwell? If not, it is worth further investigation.

Persistent:

Have you been experiencing this or feeling unwell for longer than two weeks? Watch out for the symptoms that you can’t shake off.

Creating a culture where people feel comfortable discussing health challenges at work can help ensure that employees receive the support they need, but the research also highlights that for nearly half (46%), cancer isn’t talked about in their workplace.

(Source: Bupa)

Management Consultancy firms are cropping up left, right and centre these days. It’s easy to find one willing to help, but how do you go about finding the right fit for your business? Below Mark Peters, Managing Director at Protiviti, talks Finance Monthly through the process of sourcing management help.

As the market environment continually shifts, businesses face an increasing need to make fundamental changes to their strategies if they want to continue to grow profitably, manage risks effectively and optimise the opportunities brought about by change. Both emerging and mature businesses need to navigate digital technological advancements; disruptive innovations threatening core business models; soaring equity markets; uncertainty brought by political disruption (e.g. Brexit); cyber breaches on a massive scale; increasing regulatory scrutiny; adjustments to corporate culture; and changing economic conditions.

These critical concerns are in abundance for boards and executives, and the expectations amongst key stakeholders for greater transparency about the nature and magnitude of risks undertaken in executing a businesses’ corporate strategy are high. Simply put, hiring more people is no longer sufficient to maintain growth; instead, today’s challenges are driving increased demand for management consulting expertise.

Management consulting can include a broad range of business advisory or implementation services. It consists of providing third-party independent expertise in areas such as business strategy; management organisation; financial management; risk and regulatory requirements; HR; and technology to solve business problems. There are many types of consulting firms in the market. Strategy firms focus on one or two of the areas outlined above, while large accounting firms offer a broad range of services, to name two examples. However, market demand for greater insight and choice has seen both the emergence of more specialist knowledge, and an increasing requirement for consulting firms to provide a ‘full service platform’ offering. At one end of the spectrum, potential clients are looking for high-value consulting services (e.g. realising opportunities of strategic change) for critical areas, while at the other end, they are also looking for more traditional commodity and lower cost consulting services (e.g. staff augmentation). Overall, the market is seeing increased demand for a cross-spectrum offering as well as a rise in independent consultants offering more niche services.

With this backdrop, to find the best consultants to support them, organisations need to develop their own criteria for selection. Factors might include the extent to which the consultant can show:

Experience tells us that no one competency or consulting firm is ever enough to solve today’s complex business problems. Most clients want to work with a consulting firm that can demonstrate the qualities described above, solve business-critical problems and offer an alternative, fresh perspective. Consulting firms that develop the expertise of their people in the areas of digital transformation, data analytics, robotics, risk, regulatory change and front-to-back office improvements, and tailor solutions to fit the unique business problems of every client, are seeing unprecedented demand from companies wanting help to face the future with confidence.

Among the thousands of individuals, charities and businesses’ making donations towards hurricane Harvey relief, and in the wake of another pending hurricane in the Caribbean, KPMG has teamed with brand ambassador Stacy Lewis this weekend to make a combined donation of $390,000 to support Hurricane Harvey relief efforts. This follows Lewis' win at the Cambia Portland Classic where she donated 100% of her tournament winnings.

Stacy Lewis was raised and currently resides in the Houston, TX area and Lewis' husband, Gerrod Chadwell, is Head Golf Coach for the University of Houston Women's Golf Team. Stacy dedicated her play on this week's LPGA Tour tournament to relief efforts, which KPMG matched. Asked what the week has taught her, Stacy reflected: "Being more appreciative. It definitely puts things into perspective."

This win marks Stacy's 12th on the LPGA Tour and first victory since 2014. In addition to KPMG's donation to relief efforts, each time a KPMG Brand Ambassador wins on Tour, KPMG makes a donation of books and refurbishes a local library as part of KPMG's Family for Literacy (KFFL) initiative. To honor this special win by Stacy, KPMG will double the typical donation with 10,000 new books to be provided to children and local KPMG volunteers will refurbish two libraries in the Houston area.

KPMG US Chairman and CEO Lynne Doughtie said: "In times like this, coming together to support one another matters the most. We are touched by the generosity displayed by Stacy, and so many across the country, to help those impacted by Hurricane Harvey."

In addition, KPMG has pledged to match partner and employee contributions up to $400,000 to the KPMG Disaster Relief Fund to provide Hurricane Harvey relief.

(Source: KPMG LLP)

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram