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Debt - Reduction Techniques
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Description/Scope
Skill Level Time Estimate Materials Equipment-Tools Library Resources Pre-requisite Knowledge
Purpose
Furnish some ideas on reducing debt. Interest is very costly and does not increase your net worth or directly accumulate wealth. Borrowing is a valid business decision, however too much or loans on activities that do not produce wealth can be financially destructive.
Who This Applies to
Who
When to Perform
When
Special Circumstances
Warnings & Special Circumstances
Why This Is Important
Usefulness
General Benefits 7 Objectives
Text
This entire site is for educational or informational purposes only. You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional. The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas. At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed. Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply. In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida. Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. .......
Thursday, February 22, 2007 11:44 AM
Reducing
Your Debt
Lenders look carefully at your debt-to-income ratio when they consider you for a
home loan. They define debt as loan payments, credit card payments,
out-of-pocket educational expenses, and other standing monthly obligations, but
not bills for food, utilities or other household costs. Lenders prefer that no
more than 10 percent of your income goes to paying down debt. Reducing debt,
especially high-interest debt such as credit cards, is as important as
accumulating savings if you want to buy a house. To reduce your debt:
|
|
Stop
using credit cards. |
|
|
Pay
more than the minimum monthly credit card payment. |
|
|
Stop
or limit use of your bank's automated teller card. |
|
|
Cut
back contributions to your retirement savings plan. |
|
|
Develop
a realistic monthly spending plan. |
|
|
Set
short-term and long-term goals. |
|
|
Focus
on high-interest debt first. |
|
|
Take
a part-time job to earn extra income. |
|
|
Consolidate
your debts with an unsecured bill-consolidation loan. |
|
|
Consider
credit or debt-management counseling if you are seriously overextended. |
Your
notes:
Law (commentary and citation)
Regs (commentary and citation)
Cases (commentary and citation)
§§§ Law §§§
§274(d)
§§§ Regs §§§
§§§ Cases §§§
This is about Activity Based Taxplanning - maximizing deductions, minimizing cash outlay and maximizing the amount of cash retained and the net worth.
Tax is a subject that many view in order to cut costs. Taxes are a cost just as any other cost. It happens this cost is somewhat intangible and is defined by legislation without a tangible item to view and control. The money is spent and the control of the expenditure is more appropriately administered by someone trained in the law.
This is about Activity Based Costing - methods to cut costs, management accounting, management information systems, decision support systems - in general about being a manager.
Entrance Interview
Exit Interview
From Banking Records
From Customer Records
From Signed Documents
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
What to do:
Assistance - What to do
Forms - Checklists - Etc.
Financial Statement Presentation
Notes to Financial Statements
How to Make Entries
What Kind of Records to Keep
Bookkeeping Methods - Cash, Accrual and Other
How the Business Entity Affects the Recording
Sole Proprietor
Corporation - C & S
Partnerships - General, Limited, Limited Liability Company, Registered Limited Liability Partnership or Company
Trusts
Tax Exempt
Compliance Checklist
Action Checklist
Alerts & Dangers - Risks
Asset Protection
Your Defense
debt_howto_reduce.htm
