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How to pay off debts

Financial Management Technology
I am familiar with this topic too well. Closer than I would like. Fortunately, I got acquainted with the technology in time, which I set out below, so now I not only have no debts, but I can be considered a fairly wealthy person.

In the middle of the “merry 90s” I owe money to several people. To be precise, the number of my creditors was about one and a half thousand people. Different people come out of this situation in different ways. Personally, I was lucky to get acquainted with the technology of financial management L. Ron Hubbard. If Hubbard had not written anything in his life, except for these data, he would still be a genius.

A part of its cash management system is a guideline on debt recovery, which helped me in those years to restore excellent solvency and creditworthiness. With the help of these principles, I have today helped many businessmen to put their finances in order. Some of my clients, from among those who know how to follow instructions exactly, have eliminated the confusion in financial matters for several weeks.

I will not torment you for a long time, these are simple principles.

“… never give back more than what you have earned (only in a state of real, serious danger, and then I would have thought three times).”

Simple Debt Relief Principles
In order to accurately manage finances, you need to know one figure that some businessmen do not know. This figure is the size of the trading margin (margin, dirty profit) received in the previous week. It is considered as follows: direct costs are deducted from gross proceeds (the cost of purchasing and transporting what you sell, for example, or directly to provide the service). That is, only the money that is not earned by your organization is deducted. Everything else (taxes, salary, rent, communication, etc.) is overhead and is not deductible from gross proceeds. So you get the amount of money you earned in a week.

Not every business accounting is organized in such a way that this amount can be received weekly. But in every business it can be so organized with the help of a good accountant and programmer. The standard “Model of administrative know-how” has a section dedicated to this issue.

Now a few of the most important principles of debt recovery.

Never pay debts due to turnover.

That is, never give more than what you have earned (only in a state of real, serious danger, and then I would have thought three times).

Schedule payments on debts weekly.

It should be just a certain percentage of the margin (trading margin, value added – who calls it) over the past week. And you should never overspend the resulting margin.

“There are no parties with a sweep or higher living standards (mortgages, purchases of yachts, airplanes, new offices, etc.). You are not yet guaranteed that this take-off will not end in a week or two.”

If you have no margin and no income at all, this is a separate case. You have no valuable product (the result of production activity that people are willing to buy). It is necessary to conduct research and determine what will be the product. And then promote this product, getting paid for it. It may seem too simple, but people do not really understand that lack of money is always an indicator of insufficient product.

You should never pay bills by “slightly”. Only entirely.

If the debt is too large to cover it immediately, negotiate a tranche with the lender and comply with these agreements. But don’t pay in installments a little. This immediately advertises your instability and insolvency. As well as a mess in finance. It is better to hold a little payment, but pay the bill entirely. Otherwise, at one point you may find that creditors urgently need to repay the entire amount as a whole, since they no longer trust you.

According to Hubbard, you are constantly postponing a certain percentage of the margin (and not a certain fixed amount), and you also set aside a part of the margin (also a percentage) for actions to promote your product to the market. If income is very low, you must invest all fixed assets in effective promotion activities. In my marketing seminars, I fully cover the methods that should be used in the promotion, and those that can not. And you do this until you feel the vein – a truly effective way to get money from customers.

Having understood what exactly corresponds to the needs of clients (whatever one may say, without feedback, surveys cannot be done here), you need to make the last breakthrough and organize the provision of products or services so as to fulfill all the obligations assumed.

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