If you are in Debt avoid Depression

Spiralling debt brings disappointment, despondency and depression to debtors who never controlled their lives let alone their finance. On the throes of depression is the red line. If depression is not managed, then it leads to fatal consequence. Here is the maxim: If you are in debt, avoid depression.

Debt burden has escalated in the last decade to phenomenal levels, unduly aided by advertisements by credit card issuers and personal finance providers, consumers ratcheted up the borrowings. When the crash came it not only dragged the borrowers low but pulled down the debt providers. Against the backdrop of teetering economy corporates corked off new hiring or at worst began retrench existing staff. Falling income on one side and loss of employment on the other side have trammelled consumers. Business persons are not spared either. They saw to their horror their order book trouncing downwards. Worst affected are the micro and small businesses. Like fall of dominoes, businessmen, consumers and borrowers were stumbled with disappointment, frustration and despondency. Unchecked it ended up in depression. Suicidal tendency was raising its head.

Depression leading to death

Depression as a cause of suicide is now firmly established. During the recession period 2007 to 2009 more than nine countries reported increased rates of suicide due mainly to financial woes. Feeling the sting more, was Greece that recorded a whopping 16% jump in the suicide rate. Ireland followed on heels with a staggering 13 % pike in suicide rates. Britain, though not ostensibly affected could not salvage itself. Recording 8 % rise in suicide rates; Britain tallied 5706 people killing themselves in 2008 many of them cursing debt for their plight.

Does this mean everyone who has loans burden is affected in similar manner? Analysts say that the effect of debt burden on borrowers is asymmetrical. There are no worry characters, which have sufficient asset base and least worried about debt. More than that, they generally flaunt positive attitude towards obtaining and paying out debt. The reckless borrowers on the other hand may not have asset base, but consider more the loans it is merrier. On the middle we have consumers who borrow over the limit considering it as fashion or way of life.

Worry kills

On the other side of the coin are people who are inordinately worried about loans. Most of them are either fixed income earners or enjoy luxury life erstwhile, but were short on disposable assets. A salutary feature in them is that, they get the blame game end with them; in sum, they are justifiably worried about outstanding debt. From this point onwards, we see quick slide towards depression. There is a saying: Why worry kills more people than work because more people worry than work. This comes true as people worry more about their debt. About 11 % of British citizens consider debt as the biggest worry affecting their quality of life. In the case of people who have health issues or suffer from chronic disease, the trepidation is marked. They lose weight and sleep and before long appear mere shadow of their former selves. Worry also targets those who are dependent on drugs or alcohol driving them more towards these. Another casualty is the ones who are light hearted. When they receive notification from their credit card issuers that their file is now transferred to collection departments they get jittery. A follow-up communication that the file is now with third party collector sends shiver through their spines, leading to intermittent bouts of depression.

Seeking remedy

Not everyone acknowledges going through low. Many hide it and implode one day by taking their lives out. Out of others who realize nearly 80 % do not take counter-measures and lurch towards the danger zone in matter of weeks if not days. The fortunate ones re-examine their affairs. They follow three track policies to take them out of the mire.

1. Consult medical professional in treating symptoms of low feeling to get back to proper health

2. Seek advice in arranging creditor meeting, re-scheduling loans and recovery finance to turn the corner

3. Obtain counsel in understanding and evaluating your cosmics, so that you can once again make your cosmics work for you. Cosmics are aspects residing within you generally go un-noticed. Once you know your cosmics well you can manage debt and the resulting depression better.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

Whatever happened to Personal Finance?

No doubt, personal finance had seen a major dip in 2011. When you analyse the performance of chief areas of personal finance namely, mortgage, car finance and credit cards, a glaring trend pops up. Consumers are shunning mortgage and car finance and banking on credit cards. Instead of accumulating assets consumers have jacked up credit card expenses. Whatever happened…..?

There is an adage; when the going gets tough, the tough gets going. As we see a big reverse in personal finance in 2011 consumers instead of being tough on pruning expenses have gone soft on expense loading. Spending via credit cards has notched up in many countries. Britain experienced a staggering 35 % growth in credit card outstanding compared to the previous year. Conversely the number of people using credit cards rose marginally by about a percentage and clocked at 12 Million. In America the outstanding skyrocketed to U S $ 65 billion, a hefty US $ 20 Billion more than the figure for 2010. There again the number of users remained almost stagnant.

In comparison, mortgage finance pales into insignificance. Britain experienced a chipping away of almost 10 Billion sterling worth of Mortgage debt in 2011 bringing to the mind of 1970s when economy was in the dog house. Reduction in activity in the home market coupled with a significant reduction in re-mortgaging were the chief cause for this trend. More potential home borrowers kept away from availing finance even though banks were ready and willing to grant them finance. In fact mortgage loan approvals topped Sterling 8 Billion but much less were actually drawn down. Most lenders reported that borrowers were keen in paying existing finance at quicker pace to bring down the interest cost. They agree that the loans that exist now are booked when interest rate regime was in higher integrals.

Same story was repeated in the car finance scene too. Car sales were down 4.4 % in Britain in 2011. The number of cars sold was 1.94 Million lowest since 1994. Sales were mainly in the medium market models lending credence to the figure of 96,112 of Ford Fiesta sold. In contrast high market BMW 3 Series clutched at 42471 cars. In line with this, loans for acquiring new cars also plummeted. No major banks came out with any innovative car finance scheme in 2011. Reading from what is happening in the personal finance you cannot help but come to the conclusion that consumers are smart borrowers. Here is the sketch of their mind-sets as painted in my canvas:

1. Short-terming: Consumers have resorted to fire fighting; that is to play in the short term market rather than dabble in long term market

2. Asset as burden: They are not keen to garner assets like home and car investment that could easily become a weighty burden. Whereas blipping up expense is a manageable one. This blending of financial alchemy displays shrewd reading of the economy on the part of the borrowers

3. Lowering interest cost: Borrowers are going one over other to pay down high-interest home loans

4. Budgeting well: Consumers show remarkable ability in using interest free credit period offered by credit card companies and liquidate outstanding in time

5. Cosmics have landed: Borrowers are driven by their cosmics to play safe without getting into too many financial commitments which if goes un-checked would, potentially lead to long term instability in mental peace and financial balance. Keeping cosmic balance dictates that they go on rope walking this time around and wait for things to improve in 2012.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

Six Tips for Designing Better Business Logo

A business logo is more than a symbol; it speaks the language of business, so to say. The whole canvass of business policy and practice is summed up in a business logo. A business and its logo remain one and the same. A business is known by its logo; correspondingly a logo signifies the business. This duality is the key function of a business logo. To carry out this function a logo must be well crafted. There are six tips for designing a better business logo:

1. Keep it Simple, but not stupid: All of you know about the KISS principle: keep it simple and stupid. As regards to business logo you have to do a bit of tweaking; follow the first commandment to the letter, yet keep the stupid part out. A simple logo means a lot for you. The adage goes: brevity is better part of valour. When a logo is brief in terms of simplicity it garners more attention and better response. Complex and complicated logos generally fall on the wayside because they neither get attention nor any response afterwards. However, I caution you that simplicity does not mean that it is devoid of any colour or credence. Inside your simple logo, there must be story woven about your business, its vision and mission

2. Dazzle viewers first, allow them to think later: I learnt this from “Shock & Awe “theory stroked by former President George Bush that failed to win him the war, nonetheless this can work wonders in business. A logo must make great first impression on the viewers. Place them on the cusp of a journey towards your business logo; grab their attention and make them bedazzled by the logo; thereafter take them to the higher level in making them think that the logo is just part of their lifestyle. This is how Coca-Cola was built

3. Convey the message: At first brush, logo looks like a symbol, form, or lines and letters; it is more than that. A business logo essentially communicates the mission and vision of the business; put it in other words, it functions as a medium. Now that you got a medium it is time for you to develop the message to go across your audience. Firstly, you must chalk out a theme and then you should calibrate it to suit the message you intend to broadcast, thereafter you need to embed the message within the business logo. Look at the Apple logo. Apple is the name of computer and symbolises a health food or may be the forbidden apple; after taking a mouthful the apple sans the part squirrelled away is presented as a message. The computer works better even after it is being battered, provided that if it is an apple

4. Flesh out the structure: Indeed, substance matters in developing business logo; equally important is the style in which it is delivered. Substance and style are in the works of a better business logo. Substance was discussed as the message; style is anchored on the way it is presented. Tone, texture, fonts, and colours are all the paraphernalia added into a logo to flesh it out; these give weight, emphasis and nuance to your message. It can be peremptory like IBM or stylistic like Nike

5. Make it memorable: You have dazzled the viewer and then conveyed the chosen message in a winning style. Still there is something missing; that is whether the viewer would remember it now and recall it later. To imprint the logo on your viewer, you have to win both their hearts and minds. The logo must appeal to their sentiments opening the gate valve of their emotions, attachment and liking towards a business logo. Assuming viewers are rational and thinking persons, it must also get copied into their brain; the brain waves heave up and down letting your business logo to float; at any given moment when the memory is tinkled or the viewers see your logo somewhere the brain waves respond at prompt positively

6. Sprinkle cosmic resonance: Finally, a logo must have cosmics flowing within. A better business logo delves deep into the cosmic reservoir and sprinkle out cosmic energy to swell the ground with goodwill, positive feelings and emotional attachment. In turn these get transposed in the minds of viewers as sense of appreciation and feelings of attachment towards your business logo.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/

Why Buy an Existing Business?

Once you have made up your mind to be a business person next thing that strikes you is whether to start a new one on your own or buy an existing business. Both options are doable. Yet, buying an existing business seems to be an easy way out. Let us see the advantages of selecting this alternative.

1. Knowledge Bank: The first and foremost plus point is that you know the lay of the land as far as the business you intend to buy is concerned. You have details of financial, operating and marketing performance; you are appraised of its staff, customers, suppliers; you have ideas about its owners and bankers. You can get published information to corroborate what the present owners have tried to convey

2. No Sunk-cost: There is no need to re-invent the wheel; you are spared with time and money in setting up a new business and going through start-up stage ; you have no hassle of getting approvals and licenses; more than that your decision making is made much easier as you have to say yes or no

3. Ready-made: It is just like buying a ready-made suit that fits you well. When you buy an existing business you take not only the entity but everything connected with the entity. There are trained staffs attuned to the ground realities of the business; they are well equipped with systems encompassing various activities of business such as purchasing, operating, marketing, selling, billing, financing and so on. You take over a pool of customers who are time-tested and have above par credit reports. In addition, there are suppliers, reliable in honouring contracts. All these cascading benefits are of long term nature impacting your short term performance. On top of all, you are briefed on business trends and future scenarios by the owners and employees. At a given time this turns out to be your short-term asset that helps you capitalize it for long term survival

4. Business Reputation: The fourth advantage rests on reputation of the existing business. They have track experience and a name in the industry to go with. In common parlance it is known as goodwill. You buy a business associated with the kind of reputation in which it is recognized by the wider society

5. Price is creamy: Depending on how you negotiate you may end up with a big bargain if you buy a business at a stated value that is less than its market value; sometimes you may have to pay a premium price that is to pay more than the market value. In either case you get a worthy business in your hands

6. Finance available: Another key positive is that you can finance the purchase of an existing business much easily than getting money for a new start-up. Banks generally lend part of the purchase price when it changes hands. The existing bankers of a business are generally inclined to continue their relationship with the new buyer by supporting him

7. Foundation is laid: When you buy existing business you get one with solid foundation. What you have to is to build on this foundation. You can set the tone on product improvement, profitability enhancement, widening the customer base and diversifying capital sources in felicitous manner

8. No Down-time: Once you buy existing business you metamorphose as a business person overnight. There is no waiting time; absolutely no time is wasted either. You get into the hot seat sooner than later as per purchase agreement you sign up with the seller

9. Cash flows from day one: An excellent plus is the way cash-flow begins. You buy the business and immediately afterwards you see cash coming in, in correspondence with the business activities continuing unabated

10. Cosmics begin: Finally, as I say, cosmics commence to function making your life rewarding and profitable. You have chosen a business; it has its own cosmics. You are a business person and you have your unique cosmics, aspects residing within you shaping and influencing you though these are un-seen and un-noticed by you. Once you fuse both these cosmics you become a successful business guy.

Muthu Ashraff

Cosmic Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/