SIXTH PAY: WAS IT NECESSARY?

Recently the Maharashtra Government in India announced implementation of 6th Pay Commission for its state government 6th-payemployees from retrospective date i.e. 1st Jan 2006. This pay is going to benefit nearly 14 lacs employees & 7042 pensioners. I don’t understand why government is partial between government employees & private employees. On going economic slowdown in India the government should save its earnings and should it for productive purposes. The fact is government people are inefficient as compaired to private employees.
Every one in the world is trying to cut their unproductive expenses and saving. The Maharashtra government is already in debt by Rs. 144325/- (INR) & 6th Pay will enhance the debt by Rs. 1837/- Crores (INR). The earning are also down due to economic slowdown in India & financial crisis all over the world in form of tax revenue. One of the reasons why the government is implemented 6th pay because of the Central & State elections are their in coming months. Is it a dirty politics or matured one?

DEBT COUNSELLING: AN INSIGHT- II

(…cont.)HOW DEBT COUNSELLING WORKS?

Debt counselors assess your requirements and financial status in totality and brief you about the cost involved. The next stage is to jot down the sources of income and outflows like installments of loans, intrest, insurance premiums etc. This centre helps you to restructure the outflows so that you live a debt free life. Banks are ready for settlement of loans as they want to avoid loans from becoming NPA’s. These services are free of cost.

TIPS TO GET OUT OF DEBT

  1. Firstly you should inform your spouse and parents about your debts.
  2. Keep minimum no. of credit cards. Give preference in repayments to those whose intrest rates & principal amounts are high and then other debts.
  3. Go for One Time Settlement (OTS) if the bank allows the defaulter to settle all dues in one time.
  4. If OTS is not possible restructure your loans, premiums. Draft a letter to bank stating your inability to pay EMI and asking for restructure.
  5. Transfer your debt from one financial institution to another which offers you low intrest rates and flexible payment options.
  6. In the worst case, if you have lost all money and do not have any source of income then file a petition in the court for insolvency. The court will take over all the assets and pay all your debts in pro-rata basis.

DEBT COUNSELLING CENTRES IN INDIA

There are various banks and financial institutions which runs debt counselling centers as a part of their ‘Corporate Social Responsibility’. Where as for customers it’s a ‘Goodwill Gesture’. The banks which provide these services in India are:

· Bank of India’s Abhay (http://www.bankofindia.com/abhay.aspx)

· ICICI Bank’s Disha Financial Counselling (http://dishafc.org)

· This site is an initiative of the Indian Banks’ Association, India Cards Council and MasterCard which offers free financial education (is http://money4you.in).

· Bank of Baroda’s (http://www.bankofbaroda.com/bgpk.asp) and many more banks.

CONCLUSION

It has been rightly said that ‘Money is the root cause of all evils’. Most of the people allow the power of money to control them. Most of the people have misconception that money solves all the problems. But in fact it accelerates the problems. If we ask people why we need money? The most common answers we find that they want to get rich or ‘I’m in debt so I need money’. Debt counselling centers helps you to have a sound sleep