What is Debt Management?
Debt management is known as a technique which helps account-holders or debtors to payback or to handle their obligations in a better way. It involves some creditors working on helping and sorting-out debts which helps making it easier for defaulters to manage payments in a more successful and effective approach. If debtors have a problem with managing obligations they can reconsider some Management Companies.
IMPORTANCE OF DEBT MANAGEMENT:
From the early 1980s, Public debt management started to change from time to time. It became an essential superiority for many developed countries. (Kappagoda, 2008)
It has been argued that debt management is very important because it helps people into managing their debts in a better …show more content…
If a person is facing debt difficulties then he/she must prepare a list of monetary priorities and solving these difficulties should be at the top of his/her list.
RISK SIGNALS:
A person can control the risks of debt only when he/she have noticed the signs, and they must know what they are and how to deal with each sign. There are few signs that indicate to a person that he or she is facing debt problems, it may contain the followings signs: Facing a difficulty in paying the bills on time. Noticing past outstanding or receiving phone calls from collectors. Difficulties that would lead to living on overdraft or line of credit. Thinking about debt may lead to having a hard time to sleep or …show more content…
Double Declining Balance Depreciation: in the early years the expense of depreciation increases of the assets useful life, then the expense starts decreasing in the later years.
Example: a machine is purchased for $ 10,000 on the other hand the Residual Value is $ 5,000 and 5 years would be the useful life of the asset. Calculate the cost of the asset:
Purchased Price: $ 10,000 Lawyer Fees: $ 300 Customs dues: $ 3,000 Installation Fees: $ 200 Delivery: $500
Rent: $ 700
Repairs: $ 100
Cost=10,000+300+3000+200+500=$ 14,000
Calculate the Depreciation Charge Per Annum (P.A):
Depreciation Charge P.A= (Cost of Asset-Residual Value)/(Useful Life of Asset
Debt management is known as a technique which helps account-holders or debtors to payback or to handle their obligations in a better way. It involves some creditors working on helping and sorting-out debts which helps making it easier for defaulters to manage payments in a more successful and effective approach. If debtors have a problem with managing obligations they can reconsider some Management Companies.
IMPORTANCE OF DEBT MANAGEMENT:
From the early 1980s, Public debt management started to change from time to time. It became an essential superiority for many developed countries. (Kappagoda, 2008)
It has been argued that debt management is very important because it helps people into managing their debts in a better …show more content…
If a person is facing debt difficulties then he/she must prepare a list of monetary priorities and solving these difficulties should be at the top of his/her list.
RISK SIGNALS:
A person can control the risks of debt only when he/she have noticed the signs, and they must know what they are and how to deal with each sign. There are few signs that indicate to a person that he or she is facing debt problems, it may contain the followings signs: Facing a difficulty in paying the bills on time. Noticing past outstanding or receiving phone calls from collectors. Difficulties that would lead to living on overdraft or line of credit. Thinking about debt may lead to having a hard time to sleep or …show more content…
Double Declining Balance Depreciation: in the early years the expense of depreciation increases of the assets useful life, then the expense starts decreasing in the later years.
Example: a machine is purchased for $ 10,000 on the other hand the Residual Value is $ 5,000 and 5 years would be the useful life of the asset. Calculate the cost of the asset:
Purchased Price: $ 10,000 Lawyer Fees: $ 300 Customs dues: $ 3,000 Installation Fees: $ 200 Delivery: $500
Rent: $ 700
Repairs: $ 100
Cost=10,000+300+3000+200+500=$ 14,000
Calculate the Depreciation Charge Per Annum (P.A):
Depreciation Charge P.A= (Cost of Asset-Residual Value)/(Useful Life of Asset