Saving for a rainy day

Don't start with any other savings or work towards other financial goals even paying off debt before you've got at least a small cushion against life's inevitable knocks.

Why would you put money into an emergency fund if you've got lots of expensive debt? Because if it hits the fan and you can't cope you'll find yourself even deeper in debt.

If you owe a lot of money, save until you have a small emergency fund and then start tackling your debt. Once you're debt free, but before you start other investments, continue to ramp up your emergency fund and you'll have a far better chance of avoiding debt forever.

An essential part of any debt reduction plan

People with emergency funds invariably emerge from crises in better financial shape than those without and are far less likely to accumulate debt.



Read More

Here's Why Jefferson County, Alabama, Has to Go Bust

Then the fun really began, as the county binged on financial instruments called interest-rate swaps, and also converted almost all of its fixed-rate debt to variable-rate. The collapse of the bond-insurance industry earlier this year and the speculative nature of swaps and derivatives now have the cost of that sewer debt exploding.

Somehow, the county's citizens have to stop the clock. Then they have to ask why all this happened. Then they have to tell everyone else the cautionary tale so that other public-finance officers don't get into the same mess.

The odd thing about municipal bankruptcy is that it's voluntary. If they had the opportunity, I imagine that the county's creditors, themselves hard-pressed, would have compelled it to enter financial rehab long before now.



Read More

DBP to offer P7.65B in debt notes

MANILA, Philippines State-owned Development Bank of the Philippines (DBP) plans to offer as much as P7.65 billion worth of debt notes that may qualify as tier 2, or supplementary, capital sometime in August.

The bank recently obtained a mandate from the central bank to revive the issuance, which was part of a P10-billion fund-raising effort planned by the DBP about two years ago.

DBP did not complete the issuance within the period approved by the central bank, ranking sources in the central bank said.

DBP plans to offer lower tier 2, or subordinated, notes that will mature in 10 years and subject to optional redemption by the issuer after five years.

Proceeds of such debt issues are eligible for computing banks compliance with capital adequacy ratio requirements.



Read More

Putting wife in debt is a form of abuse

Counseling doesn't work. Every time we've seen someone, he calls the person a quack and ends the session. What on earth do I do? Sadly Broke in Simi, Calif.

Dear Simi: Controlling the money so the spouse does not have access and then refusing to pay for a spouse's necessities or insurance is indeed a form of abuse. Before taking any action, please call the National Domestic Violence Hotline (ndvh.org) at 1-800-799-SAFE (1-800-799-7233) and ask for help. Then call an attorney.

Dear Annie: My niece is getting married, and I don't want my husband to attend because he has no sense of respect. We also have a special-needs son, and when we take him, I always end up missing the event. At the last wedding I sat outside with my son waiting for my husband to relieve me so I could get a bite to eat; he never came.



Read More

Debt consolidation and reduction

Qwest, union talk past contract's end - CNN Money
DENVER (AP) -- Qwest Communications International Inc. and members of its largest union kept negotiating Sunday as a labor contract expired. Workers represented by the Communications Workers of America had voted to authorize a strike if needed, but CWA organizing coordinator Al Kogler said no strike

Hundreds flee Grand Canyon after dam breaks - Houston Chronicle
PHOENIX — An earthen dam weakened by heavy rains broke near the Grand Canyon early Sunday, flooding a tribal town and forcing officials to pluck hundreds of residents and campers from the gorge by helicopter. No injuries were immediately reported. About 400 members of the Havasupai tribe live in

Meade Instruments Reports Q1 Fiscal 2009 Net Income of $1.8 Million

And, although we believe the turnaround remains on track, we will continue to implement headcount reductions, facility consolidation and reductions in corporate overhead and manufacturing costs to ensure that the turnaround maintains its pace, and to reduce the corporate structure in line with our new revenue model. At the same time, we are focusing on revenue growth through select new product introductions."

Mr. Muellner continued, "Liquidity continues to be strong thanks to the sale of the sports optics brands and related inventory during the first and second quarters of fiscal 2009. With the much-improved liquidity, reduced level of business complexity and plans for further reductions in overhead costs, we believe that we will have sufficient cash flow to support current operations through fiscal 2009, and provide us with additional flexibility in fiscal 2010.



Read More

Solomons Broadcaster Warned of Disconnection Over Power Debt

In a statement, Minister Huni'ehu said the debt crisis reached this point because SIEA's fuel suppliers are paid on a hand to mouth basis. He also said that the board and management of the statutory body have failed to effectively manage SIEA. He said from now on SIEA management will be accountable to the SIEA board, while the board is accountable to the mines and energy minister.

Amongst other management control measures, the minister said the SIEA management must collect outstanding debts owing to the authority and to take action against those who fail to pay up.

In a bid to collect bills, the authority have sent disconnection warning letters to clients, including national broadcaster SIBC. SIBC owes SIEA more than 325,000 dollars [assuming Solomons dollars, approx 46,000 US] in electricity bills since January this year.



Read More