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The risks involved in debt consolidation

Posted on November 24, 2020 by admin

Debt consolidation is a form of refinancing which involves taking one larger loan out to pay off multiple small ones. Although this might make managing repayments easier, you may end up paying more money interest rate or fees.  There will be companies that make offers which are too good to be true. If you feel that an offer is unrealistic and the company is promising that they can get you out of debt no matter what your situation is, you should reevaluate using their services. Don’t trust companies that:  Are not licensed Ask you to sign blank documents Refuse to […]

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Why company culture is important

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Company culture has become an important part of how businesses are perceived. Businesses with a positive culture are more likely to attract clients and customers. Statistics also show that over 50% of executives believe that having a good culture can influence productivity, creativity, profitability, firm value and growth rates.  However, while it can be easier to describe and quantify a company’s products and services, defining culture is a lot more difficult. It requires capturing the company environment, values and relationships.  Identifying what your company culture is, or what you want it to be, will determine your work processes, hire new […]

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Transition to retirement

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The transition to retirement (TTR) strategy allows you to access some of your super while you continue to work.  You are able to use the TTR strategy if you are aged 55 to 60. You can use it to supplement your income if you reduce your work hours or boost your super and save on tax while you keep working full time.  Starting a TTR pension: To start your TTR pension, transfer some of your super to an account-based pension. You have to keep some money in your super account so that you can continue to receive your employer’s compulsory […]

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Tax contributions on your super

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How much tax you pay on your super contributions and withdrawals depends on a variety of factors. The process takes into account your total super amount, your age, and the type of contribution or withdrawal you make.  How are super contributions taxed? The money that you contribute to your super account through your employer is taxed at 15%, and this is the same with salary sacrificed contributions. But there are exceptions to this: If you earn $37,000 or less, then the tax will be paid back to the super account due to the low-income super tax offset (LISTO) If your […]

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What to know before you apply for a business loan

Posted on November 18, 2020 by admin

A business loan can give you the support you need to fund growth or temporarily relieve cash flow pressures. These are some things to know before applying for the loan: Understand the purpose of your loan: You should be sure about why you want a loan and what you will be doing with the loan.  What loan amount do you need: Realistically calculate how much money you need and how you’ll be allocating it to your needs What can you afford to pay: Consider the length of the loan, payment options and other details before you apply. Think about what […]

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Superfund categories and what they mean

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There are four different categories of super funds. These have different primary features and are more applicable to certain people than they are to others.  Retail super funds Anyone can join retail funds. They are mostly run by banks and investment companies: Allow for a wide range of investment options. Financial advisors may recommend this type of fund as they receive commissions or might get paid fees for them. Although they usually range from medium to high cost, there may be low-cost alternatives. The companies that own these funds will aim to keep some of the profit they yield Industry […]

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Small business CGT concessions

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Businesses receive four different types of concessions on top of CGT exemptions and rollovers which are available to everyone. These allow businesses to disregard or defer some or all of the capital gains from an active asset which is used in the business. The four additional concessions include: 15-year exemption: If the business has owned an asset for 15 consecutive years and you are 55 years or over and are retiring or permanently incapacitated, then the capital gain won’t be assessable when you sell the asset. 50% active asset reduction: Being a small business, ATO permits reduction of the capital […]

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Tracking your spending to spend less and save more

Posted on November 11, 2020 by admin

It’s hard to know where to start when you decide to take control of your money. It can be helpful to know exactly how much money is coming in and going out to start this process.  Understand where your money is going Although it can seem daunting to track every dollar you spend, it will give you a clear view of where you are spending your money. Small things often go missed when you estimate your spending, so taking note of these will help you understand the gap between your estimations and your actual spending.  Track your spending and expenses […]

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Why you should have a written partnership agreement

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Having a strong relationship with your partners is extremely important, but sometimes it isn’t enough. Having a document which covers all aspects of running the business, both those which are liable to disputes and those which are not is essential.  If you haven’t done so already, the following are some reasons why you should create a written agreement now: You and your business partners have a clear understanding of the rules and regulations which will apply to the business and to your business relationship. If there is no agreement in place, then all the partners share equal profits and cover […]

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What is an annuity?

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An annuity provides guaranteed income for a number of years, or for the rest of your life. It is also known as a lifetime or fixed-term pension.  You can buy an annuity from a super fund or life insurance company. You are able to choose whether you want the payments to last for a fixed number of years, your life expectancy, or the rest of your life.  In order to buy an annuity through your super fund, you must be in the ‘preservation age’ which is between 55 and 60. Additionally. You are required to meet a condition of release […]

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The risks involved in debt consolidation

Posted on November 24, 2020 by admin

Debt consolidation is a form of refinancing which involves taking one larger loan out to pay off multiple small ones. Although this might make managing repayments easier, you may end up paying more money interest rate or fees. 

There will be companies that make offers which are too good to be true. If you feel that an offer is unrealistic and the company is promising that they can get you out of debt no matter what your situation is, you should reevaluate using their services. Don’t trust companies that: 

The goal behind the consolidation is to manage your payments, not create more fees and interest for you. Therefore, before signing onto an agreement, check how consolidation compares with your current fees and interest rates altogether. Also, take into account expenses and penalties associated with your existing loans and whether you will have to pay more money for paying off your loan early. If the expenses work out to be more, it might not be worth going through this entire process. 

Debt consolidation isn’t the only option if you’re struggling with repayments. Other options may be available which are more suited to you. You should discuss with your mortgage provider, credit provider or financial advisors to determine if there is anything that can be done. 

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