Financial Safety Advice

The personal financial planning or planning is the process by which a person looks at your financial situation, set your financial goals, and makes it plans to achieve these objectives.

Through the financial planning we better manage our personal finances, and an improvement in our economic situation.

Let’s look at what are the steps involved in the process of personal financial planning:

1. Knowing the financial situation

The first step in personal financial planning is to know our financial situation.

To do this, it is best to resort to the use of two tools: the personal income statement and balance staff.

In the personal income statement detail our income (wages, business, investment, etc..), our expenses (food, education, services, etc..), and profit or loss (income minus expenses) we have obtained in a month, six months or a year.

While in the personal balance detail our assets (bank accounts, investments, property, etc..), our liabilities or debts (credit cards, personal loans, mortgage, etc..), and our equity (assets minus liabilities).

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The insolvency of the families has bottomed out, due to the heavy financial burden. In some cases I renounce their homes and are often caused social exclusion.

If the situation is critical and we began to unpack the home, the best option to renegotiate the mortgage.

Alternatives to the default of a mortgage are:

• Call waiting periods
• To extend the repayment period
• Subrogated claims
• Reunify loan
• Sale
• Rental

The first step is to deal directly with the entity, if no agreement can transfer the mortgage to another institution to improve current conditions.

The reunification of loans is doable if we have other credits, this operation ensures the payment of the debt, but involves high interest rates and additional costs.

Following these recent data concerning the granting of mortgages, the option to sell the family home can be very helpful if we can not choose to share the property through the lease.

Finally, before defaulting on mortgage payments the entity many claim the total loan amount. The judicial enforcement of a home is the forced sale of the debtor’s assets to satisfy the creditor. Read the rest of this entry →