Business and Finance Analysis

Most people have multiple debts and payments. We all know that we have a mortgage, car loan, card … But what almost nobody knows is how much money you actually how much time is left to pay and at what cost (interest rate) is paying those debts.

It is very appropriate that we keep a tight check on these data, to know at any time if our situation allows us to meet these debts.

Reports and to request a payment plan

The first thing we do is a list of all loans that we have, other periodic debts and insurance payments will be addressed (taxes, incidentals, etc..) Some of these debts relate to loans for which we paid interest and others do not.

Debt interest

For example, among the debts with interest are: mortgage, car loan, personal loan (for any expenses) and credit card.
Interest-free debts

Debts without interest but we have to pay monthly or other intervals, but we can plan because we know that exist, include: income tax, vehicle tax, tax on the rateable value, shares of the residents, vehicle insurance, home insurance and personal, car reviews (ITV, maintenance …) and so on.

Contingencies

And there will be another section of contingency, we can take into account, and which, although it is uncertain, we can sense in our experience. This is wise not to fall short in forecasting and to provide a sufficient contingency expense (if less then, that money already spent on other things.)

Once known the debts to be paid, we will ask financial institutions to report on loans: initial capital, capital outstanding, shares outstanding, the amount and frequency of installments and interest we are paying. These reports must be ordered with some frequency.

The report earlier this year may not be reliable for the future, as there may be variations for new purchases, new loans or payments had not expected or remembered. No interest payments are also known, at least its approximate value. Contingency we will endow a sufficient amount (eg, slightly larger than last year).

Knowing in advance how we can we know the amount for payment each month. Obviously, if our financial situation worsens, we must see if we can continue to meet these payments, or should be prioritized (see the article Which of my debts paid first). Remember that paying all my debts will have a high level of solvency, which is always recommended for needs that may require funding.

Another utility of the table is to see if there is a dispensable expenditure or that we can reduce or negotiating interest rates or looking for a supplier that we lower the bill.

In short, we must know exactly where we spend the money and what debts we have to plan all our payments and avoid unwanted surprises.

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