merging the borrower accounts whenever the possibility arises. It is way of paying the bills collectively; pooling the debt even if the accounts are not combined.

Debt consolidation management is usually directed by certain credit counseling companies to help those who are in a financial crisis regarding debt and to draw out a feasible plan to pay their debt. Lenders may also urge debt consolidation management because it can provide a way for them to attain several accounts and some of these accounts might be worth a lot of money.

Debt consolidation management is mostly handled by consumer credit counseling agencies which offer their services to the debtor at a very reasonable cost. In certain cases the agencies might offer free services for the consumer depending upon the situation at the time being. It is also not to the profit of such organization to see their client go further into debt and therefore they make sure to help the consumer in other ways than to take a consolidation loan and purge further into debt.

This is because it is not to the benefit of a debtor, who is looking for debt consolidation management to take a consolidation loan as they do not get a feasible interest rate due to their credit rating. Some times it may so happen that the consumer may not even be granted the loan at all. Thence, as a way to help the debtor, the consumer credit counseling service offers other alternatives apart from taking on a consolidation loan and going further into debt.

The debt consolidation services come up with ways to distribute the check it receives, from the borrower, to the creditors. This is strategically the same as the debt consolidation loan. A very important part played by the debt consolidation firm is that it is able to figure out more suitable terms for the borrower’s payment of debt. This is an important step regarding all kinds of debt consolidation management.

Debt consolidation management requires for the client of the credit counseling services to device a budget according to his income. The credit counseling agency steps in to help their client come up with a suitable budget plan keeping in view the family expenses, the debt and the income. This is also helpful in preventing any financial crisis due to debt in the future. The credit counseling services help to come up with a suitable budget for the consumer.

This option is also available for those consumers who are able to attain a loan as a way to consolidate debt. The best of doing so is by taking home equity loans. As this is a secured investment for the investor we can expect the terms to be sufficiently more lenient than those given to the unsecured loans.

This way the debtor is able to pay off certain loans which cause him/ her to only worry about paying loans on one account.

Debt consolidation management is only useful for those who are able to keep away from further debt. For those who think they might plunge into further debt during debt consolidation, this strategy is considered as nothing but very risky as it would do nothing but to add to their financial problem.

Debt management is a system designated to have a third party which is supposed to assist a debtor for the repayment of debt. Some companies specialize in credit counseling. They offer debt management proposals and plans to help their clients with huge debt and also with lost credits. This helps them in controlling their financial situations.

Businesses take loans from different financial organizations and also enjoy a good credit facility with linked companies but at some time there comes a point of repayment. Firms take loans and credits which suits the model of the business one has adopted. If it is known beforehand that coming out of the red is going to take some time then one should be ready to find out the right terms of repayment accordingly.

In simple terms, debt management is the routine practice of keeping an eye on account books and making sure that spending is less than the actual earnings of the company. The main purpose of setting up a debt management system is to develop a structure of repayment plan that is designed by a third party. This is done either to follow up with a court order or as a work of personal initiation for the betterment of the company.

A debt management procedure normally includes a series of steps, on which the third party starts working on with the support of the debtors of the company.
•    The first step of a debt management company is a typical work of chalking out a list of all the creditors and the amounts owed to all those creditors.
o    There are some creditors that are not eligible to be a part of the debt management plan. These include small creditors who either owe fewer amounts or are also a part of debtors of the firm too.
o     Secured debt including car loans and house loans are not meant to be included in the derived debt management plan.

•    After the task of compiling a list of all the creditors of the company and also determining the amount of debt owed to them, second step starts. This step includes calculating the total income of debtors. This includes summing up and totaling of the expenditures like:
o    mortgage
o    rent payments
o    payments of the car
o    expenses of cost of living

•    The third and the most crucial step is then carried out by the third party agency which is supposed to assist with the debt management proposal. The third party then helps the debtor to determine the amount of money (maximum) that would be available to allocate to the plan that is derived for repayment of the debt.
There are many cases where a third party attempts to settle some of the debt amounts and moreover try to exclude or lower down certain interest rate charged during the period of repayment of debts.

However something which is important to understand is that participating in a plan of debt management will still have a great impact on the credit score of the company, and also that any available credit of the firm may be considered inaccessible for a period of time. Further it is said that if a firm has less than 10,000 US $ of debt to be handled upon, the firm may not be able to qualify for a service of debt management or a so called third party service.

We’ve heard of them, and we’ve seen them publicized and due to the terrifying horror stories showcased by the media, we are yet unsure of whom we can trust any longer.
Debt consolidation scams are something that is very common now days and can be easily trapped on the internet. There are many deceitful debt consolidation companies that have made the works of debt consolidators far more difficult to convince the clients of their fidelity.
Debt consolidators help us unify our various unsecured debts, which are also non collateral debts, into a monthly repayment of debt for a certain period. Generally, a debt consolidation firm assigns a personal representative. This is a professional debt counsellor who works with the firm in debt and with its creditors as an intermediary. Their main aim is to get the creditors to lower their rate of interests, and they might even negotiate with the creditors to wave down the late fees and even the penalties.
This article helps you to get an idea to separate bad and good, and following are some debt consolidation scams that one should have an eye in the future and watch out for.

•    Christian debt consolidation scams

A Christian debt consolidation company should be the one we should completely trust upon. But this is not the actual case. This even becomes difficult many a times to differentiate between Christian debts consolidation companies from companies that are non-religious. These companies are found to boast about similar claims and keep on promising identical solutions to the firms in trouble.
‘Christian’, as a word, is used to gain people’s trust and then, obviously, their money. Relying on religious doctrine to gain eye balls is a complete no and even professionally it’s not a good way out. This will be an unscrupulous scam hurting the faith as well as the goodwill of the firm.

•    Non-profit debt consolidation scams

There are certain companies, which are portrayed as non-profit companies dealing in debt management consolidation. Many of such non profit debt management companies are absolutely trustworthy and have a great name in the market; however, many such firms have done equally unscrupulous scams that we should always keep a watch on. Non-profit debt management firms offer free debt consolidation services.
Debt consolidation scams are often found making claims that are very untrue or impossible like:

•    Debt consolidation companies can bring about a drastic reduction in the interest rates that you are paying now.

•    They may as well lower every month’s payment by a hefty amount.

Any company that is promising to act upon immediately on your worn-out financial condition is undoubtedly exaggerating.
A trustworthy debt consolidation management firm:

•    Should meet you personally.

•    Should have a thorough discussion on your financial condition and offer the best solution for the same.

On the other hand, it is extremely vital to understand and remember that such debt consolidation managing firms are in the minority because most of them are here to actually help us and make us live an absolutely debt free life.

One chooses a debt management solution when debt relief seems an impossible dream. Debt management is a carefully planned program by experienced credit counselors, which can ease your debt repayments and get your life into peace. Nevertheless, you should not carelessly hurry up in selecting the right one. The question is how much can you believe the one, who promises to “relieve” you off your debts? Read more to know what you need to watch out for while selecting a debt management solution for yourself.

•    High Fees or Initial Consultation Charges – Most of the debt management organizations claim to be non-profit. However, if they are charging exorbitant fees under the name of legal proceedings or charge a high amount towards initial consultation, then you need to be chary about it. Initial consultation is supposed to be free, as without that you would not decide if you want to go for their services. Mind that you have plentiful number of organizations who charge reasonable fees.

•    Improper Documentation or Contract Records - When you go for a debt management company’s service, it is highly essential that you have all the terms and conditions of your contract documented with appropriate legal steps. No condition should be verbally agreed with them. If the company gives any verbal assurance and is not ready to document the same, it should ring a bell in your mind. You should not proceed on any payments, unless everything has been documented appropriately. If they refuse, check for a new one.

•    Promised a Quick Change in Credit Scores – Strict NO-NO! – Understand the fact that no company reserves the right to change your credit scores by any means with credit bureaus. It can only be improved with proper settlement of dues with the creditors. If you are being promised that your credit scores can be improved without much ado, you are being tricked, be careful.

•    Wary Advices of Neglecting Creditors – If the company asks you to simply put your creditors on hold or neglect their payments with an excuse, you should turn a deaf ear to them. A good advisor will never ask you to do this as he understands the consequences of the same. Your creditors do report your defaults to the credit bureaus and that’s how you play bad with your credit scores. A good company will negotiate terms with your creditors and work out things beneficial to both. They also suggest you good measures to improve your credit scores.

•    Insufficient Information on Usage of Your Money – When you arrive at regular schedules of payments to be made to the debt management company, you reserve the full right to know where and how your money has been paid. You should ask the company to send you detailed reports of the periodic payments that company makes on your behalf. If this right is denied, then its time to sense something fishy. You should immediately move on to an ethical company.

So now you know how and where you need to be fully aware and careful of the businesses of these debt management companies. There’s no hurry, you can always take some extra time to start their services. It only matters how to select the right one for yourself.

If you are an avid user of plastic money, you will never remember what Shakespeare said. He rightly said “Neither a borrower nor a lender be”, but little did he know about the widespread fever of using plastic money entirely for luxury and convenience. All of us get carried away about using the credit facilities for the convenience as wished. All goes fine and one thing that does not strike us is the repayment of this used credit. Debt mis-management is entirely self-invited trouble most of the times. Hence, effective debt management appears a dream impossible for many. And then the rush to all these debt management firms is the next step. But why don’t we think, the best thing to avoid trouble is not get into trouble. Therefore, the wisest step would be to “control” your debts to “manage” them. We have listed few ways below to achieve efficient debt management.

Plan your budgets – If you are already debt-struck, you need to curb your wallet on any forthcoming expenses. If you are planning to buy anything with a credit facility, work out on the amount you would need to shell out each month towards the installments. Prioritize your loans. If you have a compulsory commitment towards a home loan, settle that first and then think of any other loan. Luxuries can be put on hold till necessities get settled.

Save & Spend and not otherwise – Always SAVE & SPEND, than SPEND & SAVE. Keep a regular amount of your income aside towards contingency reserves. Keep aside the amount needed to run the month. Keep aside any amount that you are paying on any existing loans. Now, check if the residual is enough for payment of any new loan you are planning to take. If you find yourself in a difficult situation, postpone the thought over to next few months.

Timely Payments a MUST - Debts always multiply themselves! If you have already taken any loans, make sure you pay the monthly installments at any cost. If you have credit card dues, do not relax by paying only the minimum due amount. Settle the full amount each month BEFORE the due dates; else you will be slapped with high interest rates and late payment fees. Else, you’ll pay much more than what you borrowed.

Beware of the terms – Before you plunge into buying something with that big credit, read the terms & conditions clearly and through the lines. Check if you will be pressed with any hidden charges or high default charges later. The offer, like “Zero Interest rates”, may look attractive, but may take an ugly face later. Do not avail any offer based credits or loans. Always remember – “DEBT” should be your last resource and that too only in case of extreme needs. Try and stay away from this ugly side of luxurious life.

Refinance, if needed – Refinance options can also help save huge interests. Check if you can get a lower interest rate to finance your existing loan. You can reduce your monthly outflows with easier refinance options. Negotiate with the lenders for the best refinance options.

There are many other proven & accepted ways of debt control and debt management, that it will be difficult to list them down here. But, all ways point towards a common goal – Control Debt to reduce it. If you follow this rule, you would not turn to any debt management company for advice.

Few of the noted features of Articles of Association are:
* Acts which are beyond Articles can be ratified by the members, provided they do not violate the Memorandum.
* Articles define the relationship of the members and the company.
* Articles can be altered by passing a special resolution by the members.
* Promoters have to decide about the members who will be signing the Articles of Association of the proposed company.
One of the strengths of Articles of Association is that it focuses more on the content, rather than on the form. These may include escalation procedures, process charts showing the method or the procedure of work, an organizational chart and last but not the least a simple and straightforward flow chart for the basis of accounting of that particular organization. However, a company or an organization must remember to have a set of formal articles of association if they wish to register themselves in more than one country and must address the minimum issues which are required by the laws prevailing in a country.

Objects clause: This is probably the most important clause of the memorandum. It defines the purpose for which the company is formed. A company is not legally entitled to undertake an activity, which is beyond the objects stated in this clause. The object clause is divided into two sub clauses, which are:
The main objects: The main objects for which the company is formed are listed in this sub-clause. It must be observed that an act which is either essential or incidental for the attainment of the main objects of the company is deemed to be valid, although it may not have been stated explicitly in the sub-clause.
Other objects: Objects not included in the main objects could be stated in this sub-clause. However, if a company wishes to undertake a business included in this sub clause, it has to either pass a special resolution or pass an ordinary resolution and get central government’s approval for the same.

Registered office clause: This clause contains the name of the state, in which the registered office of the company is proposed to be situated. The exact address of the registered office is not required at this stage but the same must be notified to the Registrar within thirty days of the incorporation of the company.

Capital clause: This clause specifies the maximum capital which the company will be authorized to raise through the issue of shares. The authorized share capital of the proposed company along with its division into the number of shares having a fixed face value is specified in this clause.

Association clause: In this clause, the signatories to the Memorandum of Association state their intention to be associated with the company and also give their consent to purchase qualification shares.

Octroi and other local levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits. The government and Chambers of Commerce should ensure that their imposition is not at the cost of smooth transportation and local trade. Marketing of agro products and related issues: Streamlining of local subsidies and marketing policies of organizations selling agro products are some of the areas where the Chambers of Commerce and Industry can really intervene and interact with concerned agencies like farming cooperatives.

Excise duty: The excise policy plays an important role in pricing mechanism and hence the associations need to interact with the government to ensure streamlining of excise duties.

Promoting sound infrastructure: A sound infrastructure like road, port, electricity, railways etc., plays a catalytic role in promoting trade. The Chambers of Commerce and Industry in collaboration with the government needs to take up heavy investment projects.

Harmonization of sales tax structure and Value Added Tax: The Chambers of Commerce and Industry play an important role in interacting with the government to harmonize the sales tax structure in different states. The sales tax is an important part of the state revenue. A rational structure of the sales tax and its uniform rates across states, are important for promoting a balance in trade. Labour legislation: Simple and flexible labor legislation is helpful in running industries, maximizing production and generating employment. The Chambers of Commerce and Industry the government are constantly interacting on issues like labor laws, retrenchment etc.

It may be mentioned here that mostly people think of international business as international trade. But this is not true. No doubt international trade, comprising exports and imports of goods, has historically been an important component of international business. But of late, the scope of international business has substantially expanded. Companies have started increasingly making investments into foreign countries and undertaking production of goods and services in foreign countries to come closer to foreign customers and serve them more effectively at lower costs. The fundamental reason behind international business is that the countries cannot produce equally well or cheaply all that they need. This is because of the unequal distribution of natural resources among them or differences in their productivity levels.

Due to these differences, it is not uncommon to find one particular country being in a better position to produce better quality products and/ or at lower costs than what other nations can do. In other words, we can say that some countries are in an advantageous position in producing select goods and services which other countries cannot produce that effectively and efficiently, and vice versa. As a result, each country finds it advantageous to produce those select goods and services that it can produce more effectively and efficiently at home, and procuring the rest through trade with other countries which the other countries can produce at lower costs. The international business as it exists today is to a great extent the result of geographical specialization as pointed out above.

Fundamentally, it is for the same reason that domestic trade between two states or regions within a country takes place. Most states or regions within a country tend to specialize in the production of goods and services for which they are best suited. Most developing countries which are labor abundant, for instance, specialize in producing and exporting garments. Since they lack capital and technology, they import textile machinery from the developed nations which the latter are in a position to produce more efficiently. To conclude, we can say that international business is a much broader term and is comprised of both the trade and production of goods and services across frontiers.

Mobility of factors of production: The degree of mobility of factors like labor and capital is generally less between countries than within a country. While these factors of movement can move freely within the country, there exist various restrictions to their movement across nations. Apart from legal restrictions, even the variations in socio-cultural environments, geographic influences and economic conditions come in a big way in their movement across countries.
Differences in business systems and practices: Countries differ from one another in terms of their socio-economic development, availability, cost and efficiency of economic infrastructure and market support services, and business customs and practices due to their socio-economic milieu and historical coincidences. All such differences make it necessary for firms interested in entering into international markets to adapt their production, finance, human resource and marketing plans as per the conditions prevailing in the international markets.

Political system and risks: Political factors such as the type of government, political party system, political ideology, political risks, etc., have a profound impact on business operations. Since a business person is familiar with the political environment of his/her country, he/she can well understand it and predict its impact on business operations. But this is not the case with international business. Political environment differs from one country to another. One needs to make special efforts to understand the differing political environments and their business implications. A major problem with a foreign country’s political environment is a tendency among nations to favor products and services originating in their own countries to those coming from other countries. While this is not a problem for business firms operating domestically, it quite often becomes a severe problem for the firms interested in exporting their goods and services to other nations or setting up their plants in the overseas markets.

Business regulations and policies: Coupled with its socioeconomic environment and political philosophy, each country evolves its own set of business laws and regulations. Though these laws, regulations and economic policies are more or less uniformly applicable within a country, they differ widely among nations. Tariff and taxation policies, import quota system, subsidies and other controls adopted by a nation are not the same as in other countries and often discriminate against foreign products, services and capital.