Personal finance is defined as the management of money and financial decisions for a person or family including budgeting, investments, retirement planning and investments.
A debt management plan (DMP) is a way for you to pay off your credit card and possibly unsecured personal loan debt by sending a monthly payment to a credit counselor, who distributes the funds to your creditors. Plans typically last three to five years, with the goal of deleting all the debts in the plan.
Personal finance is a term that covers managing your money and saving and investing. It encompasses budgeting, banking, insurance, mortgages, investments, retirement planning, and tax and estate planning. It often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities.
Personal finance is about meeting personal financial goals, whether it’s having enough for short-term financial needs, planning for retirement, or saving for your child’s college education. It all depends on your income, expenses, living requirements, and individual goals and desires—and coming up with a plan to fulfill those needs within your financial constraints. But to make the most of your income and savings it’s important to become financially literate, so you can distinguish between good and bad advice and make savvy decisions.
It’s never been easier to manage money, thanks to a growing number of personal budgeting apps for smartphones that put day-to-day finances in the palm of your hand. It’s important to “pay yourself first” to ensure money is set aside for unexpected expenses such as medical bills, a big car repair, rent if you get laid off, and more.
Advisors are biggest help in this. Jayhawk advisors is among the advisors who understands your financial goals and help you reach there. With advisors you can easily manage your debts and plan out everything. Advisors provide you with a debt managenent plan and make your financial goals easily achievable.
A Debt Management Plan (DMP) allows you to pay off your debts at a rate you can afford. It’s suitable if you have non-priority debts like credit or store cards, overdrafts and personal loans. Your DMP provider will help you work out an affordable payment and talk to your creditors. You make one monthly payment to the DMP provider who then pays your creditors for you. It’s always best to talk things through with an experienced debt adviser before you decide to take out a Debt Management Plan. This is because the debt solution that is best for you depends on your personal circumstances.
An adviser will:
- Treat everything you say in confidence
- Give advice about better ways of managing your money
- Never judge you or make you feel bad about your situation
- Suggest ways of dealing with debts that you might not know about
- Always be happy to talk to you, however small or big your problem is
- Check you have applied for all the benefits and entitlements available to you.
You might only need to have one conversation with an experienced debt adviser to make sure that your plan to manage or clear your debts is the right one for you.