Sometimes you can lose track of our financial situation, and when you get a clear look at things, you find that the situation is unmanageable. In these instances, you have to take a sober look at things and make decisions that can help us to get you back to financial stability.

For many people in the UK, this means choosing between two options for discharging debts, and Individual Voluntary Agreement (IVA), or bankruptcy. Each is a fair option depending on your specific situation. However, you should also consider other paths before committing to either of these very disrupting scenarios. Before settling on any specific option, you must find a way to manage your debt that is appropriate to your personal circumstances.

Bankruptcy

If you have a serious problem with debt and cannot manage it, bankruptcy is a legal option that might help. It offers many potential advantages to those who cannot pay off their current debts including:

• Creditors will stop harassing you. They cannot take legal action against you.
• You can keep certain items needed for you to continue working and some personal items of value. However, you might have to sell your car.  
• You can keep a reasonable amount from your income needed to live.
• Payments into bankruptcy cannot last longer than three years. 
• Debts included in bankruptcy do not have to be paid back. 

There are, however, many downsides to filing bankruptcy. They include: 

• Your credit rating will be affected for six years, and it will be difficult to get new credit during that time.
• Bankruptcies are listed publicly so everyone will know your intimate private financial details.
• Your home might be sold if there is any equity in it. You might also have to sell some of your assets to satisfy creditors. 
• You might lose your job, or your business might be shut down and your company assets sold to pay off creditors. 
• Your financial affairs could be limited up to 15 years if there is a bankruptcy restriction order filed against you.
• Bankruptcy could affect your immigration status

If you are considering bankruptcy, you should carefully think through the benefits and repercussions with your spouse and a legal advisor.

An Individual Voluntary Agreement (IVA)

IVAs were created as an alternative to filing for bankruptcy. It is for individuals who are in financial distress and seek an orderly way to pay off their debts. The process creates an affordable repayment rate for individuals so they can get out of crippling financial debt. 

An individual voluntary agreement (IVA) is an agreement between you and your creditors to help you pay off your debts at an affordable rate and over a period that allows you to continue to generate income and pay your new bills. This option is likely the better option for you than bankruptcy if you:

• Could lose your job if you apply and get bankruptcy protection. Some professions, like police officer and military jobs, do not allow you to file an IVA.
• Have, or are considering applying for a power of attorney on behalf of someone
• Currently, have spare income each month, or you have a lump sum of money that can be used to make repayments to creditors
• Own a business
• Have assets like a home, boat, or other valuables that you want to keep.

An IVA can provide certain advantages over a bankruptcy filing. They include:

• You can continue to use your current bank accounts
• You do not have to notify your bank about an IVA and can continue to use your same bank accounts to make payments. 

More flexibility than a bankruptcy

IVAs are designed to work within your current situation. It looks at everything you have and what is possible and then comes up with a workable solution for you with your creditors. There is a focus on having you retail your property and other assets while you pay back what you owe. 

You Can Use an IVA to Stop a Bankruptcy

Creditors will often push individuals to go into bankruptcy to get the money owed to them. This can be catastrophic to someone who owes money to them. An IVA can be used to halt bankruptcy proceedings. 

IVA Risks

IVAs are designed for individuals whose situations have stabilised. If you are not sure of consistent income or are still spiralling down financially, an insolvency practitioner will step in and end your IVA. At this point, creditors can force you into bankruptcy. Benefits of bankruptcy. You will also likely pay more to creditors in an IVA than you would in a bankruptcy. 

Choosing between an IVA and bankruptcy is a complicated decision. Take your time and select the one that best fits your situation and needs.

Your business success is predicated on you getting several things right these days. You need to sell the right products and services and provide service for them that shows your commitment to the things you make. Above all else, you must take steps to create and retain a dedicated customer base.

Companies must always remember to put the customer first. The battle for customers today is one that is constant and hard-fought, and those that win the battle will have customer focus at the heart of their business practices. 

Putting Customer’s First Has Always Been a Winning Business Strategy

If you look back over the history of successful businesses, companies that understood that their major focus had to be customer satisfaction were more likely to be successful in the long term.  Whether it was Sam Walton’s approach at WalMart or Steve Jobs at Apple, making customer needs the priority has paid great and created world-beating brands. 

These companies realise that most products can be duplicated more or less, and so trying to sell something unique is simply not enough. You need to show customers that the product, its design, delivery and service, are catered specifically for their needs. And that the company is fully dedicated to the customer’s satisfaction. Customers will pay more and walk past competitors if these things can be consistently provided to them. 

Customers Expect to be Pampered These Days 

Times have certainly changed regarding the expectations that customers have of the companies they buy products and services from. Today customers expect to be pampered, catered to, and told that the things that they need most are available quickly and the way that they want them. They know that if one company cannot satisfy them, many others can provide the same or similar product or service. And another company can likely meet their needs for price, quality, or service.

In this environment, companies have to be extremely vigilant regarding their customer relationship strategies. They must do much more than sell a good product or service; they must befriend and even coddle customers through the life of their relationship. Companies need to say close to customers using tools like social networks, emails and blogs to create consistent, high-quality contact, answer questions and allay any fears. 

The modern business environment is one that is constantly changing along with the needs of the customer. You need to be prepared for anything that might be on the horizon as a number of different factors can come to affect your business and your ability to pick up new customers. With a comprehensive business insurance policy, you can protect yourself from a multitude of different factors that might run you into trouble.

Smart companies embrace this reality and understand that a part of brand building is engaging customers in a new and deeper way. When done properly, it can create deeper connections and better customer loyalty. This can easily benefit the bottom line of any company. Keep your customers and employees happy, and your company will have great success in the long-term.

In business, your reputation is everything. When a company’s reputation is damaged, everything from its site traffic, to its quality of leads generated, to its sales numbers can take a significant hit. For better or worse, perception is just as important as reality in the minds of customers. Given that fact, startups have to ensure that they make a good first impression with customers in order to legitimize their brand. Otherwise, they could face an uphill battle from the very start. Thankfully, any of these five methods can help establish your brand as a legitimate player in your industry. Check them out here: 

Get Social 

Does your business have a Facebook page yet? How about Twitter? Instagram? WhatsApp? Modern businesses need to have a strong social media presence if they want customers to trust them. Indeed, many consumers interact with brands through their social media channels long before they make a purchase. As such, it’s imperative that your social media pages are up-to-date and that you respond to customer queries and concerns posed there. 

Make the News

Obviously, not all press is good press. You don’t want your business featuring in the news because of mistakes you’ve made. However, business owners shouldn’t be afraid of journalists. Accepting an interview with a local journalist is a great way to boost your personal and professional profile. Plus, many people trust content in newspapers, magazines, and on local TV stations. Don’t pass up the opportunity for positive press. 

Secure a Loan

It’s no secret that money talks. Given that fact, startups that are able to get a loan can gain access to funds that they otherwise might’ve missed out on. A little extra capital can go a long way toward cementing a place in your industry. 

Traditional Advertising

Are there many benefits to digital marketing? Absolutely. Still, there’s something to be said for traditional advertising methods. Ads placed on billboards, on local radio or TV stations, or even on barricades (like those made by OTW Safety) at local events can give your business quality, localized exposure. There’s something powerful about a tangible advertisement that can be reassuring to new customers. 

Solicit Reviews

Customer reviews hold a ton of weight and can influence business viability in significant ways. Because of this, it’s especially important for new companies to hit it off with their first customers. A few negative reviews early on could be enough to sink a company. Conversely, a few positive reviews can give your business the spark it needs to hit the ground running. So don’t be afraid to ask happy customers to write about their experiences on social media or third-party platforms. 

Like it or loathe it, freelancing is the way of the future for many young professionals. Though there are many advantages to freelancing for a living, it can be difficult for new freelancers to manage their finances effectively. After all, freelancers don’t receive a “steady paycheck” like traditional nine-to-five employees. Nor do they have access to insurance programs from employers. Given all that, today we’re going to highlight four financial tips for aspiring freelancers that will help them stay out of debt and on the path toward economic prosperity. 

Figure “Average” Income

It can be tricky for freelancers to budget their money effectively –– in large part because they might not know how much they’re going to make in a given week, month, or year. Indeed, it’s not unreasonable for a freelancer to make $5,000 in a two-week span only to barely crack $1,000 over the next month, for instance. The key, then, is to calculate your average yearly and monthly income. This will allow you to set an accurate budget and reasonable financial goals and expectations. 

Negotiate

What is the value of freelance work? In truth, it can be difficult to say. What you charge to complete a project may be more or less than what a competing freelancer charges. Because of this, freelancers need to be skilled negotiators in order to 1) land jobs and 2) make money consistently. As a general rule, you can’t be afraid to negotiate with clients. However, you shouldn’t make a habit of selling yourself short. Providing services for less than they’re worth can weaken your bargaining position in the future. 

Create Savings Funds

As mentioned above, freelancers don’t have access to 401ks or insurance programs set up by employers. Instead, they need to create savings funds for themselves. Signing up for health insurance and setting aside money for retirement might not seem glamorous, but it’s essential all the same. 

Don’t Overreact

Freelancers have good months and bad months; successful professionals learn to take everything in stride. They don’t give into financial anxiety after a paltry month, and they don’t suddenly splurge after a lucrative period. Maintaining an even keel and a positive attitude is one of the best ways to set yourself up for long-term success as a freelancer. 

Final Thoughts

Whether you design websites for startups or you write detailed articles about complex equipment like ACD-A tubes, freelancing can offer young professionals a meaningful opportunity to forge a career path. Thankfully, the above tips will help you reach your goals and avoid financial pitfalls. Keep them handy –– you’ll be glad you did!