There are many causes of financial problems. There are financial problems that could be avoided and there are those that could not be avoided.
An example of financial problem that could be avoided is financial mismanagement. That is where a person has good paying job, where his/her take home pay is more than enough to pay his/her basic needs like: food, shelter, clothing, education for children and miscellaneous expenses.
Financial mismanagement is the consequence, of not making a family monthly budget where family expenses should be itemized with a corresponding amount for each expense. Aside from the basic needs above mentioned, include in the budget, vacation and recreation.
Any surplus income should be saved (force saving) in a separate interest-bearing bank account as reserve for “rainy days” so to speak. That is when you are laid off or get sick. Those two are examples of causes of financial problems where you have no control.
Another financial problem that could be avoided is when you have a legal dispute. Going to the court of law to resolve a dispute should be the last resort. Why? because of the following reasons:
First, legal fees are expensive. When you hire a lawyer or paralegal to represent you in court, it would be expensive for the resolution of the case takes time. Every time a hearing is postponed and your lawyer or paralegal appeared in court, you have to pay him/her for the time spent.
Second, the resolution of the case takes time for the courts are loaded with so many cases. Some time it takes years for a judge to render a decision to resolve a case.
Further, every time there is a hearing in most cases your presence is required. When it happens you need to be absent from your work if you are still working.
Third, though you may think that you have more than 50% chance of winning the case, there is no guarantee that a judge would decide the case in your favor.
Fourth, your relationship with the person you have a dispute would become worse from bad. It is sad, especially if the person is a relative or a friend.
Considering the above, the writer believes that the best alternative, instead of going to court, (which is expensive and time consuming) is to settle the dispute between you and the opposite party, through an impartial mediator, that both you and the opposite party agree.
That person might be a common friend of the opposing parties
In the process of negotiation to resolve the dispute outside of court, both parties should not be firmed, but flexible on what he/she demands for the settlement of the dispute.
Since going to court has no assurance you can get what you want, for it is a judge to decide base on your evidence presented, both parties should be negotiating in good faith, willing to give and take to settle the dispute.
In settling a dispute outside of court, both parties would save money and time in going to court. Therefore, going to court to settle a dispute should be the last resort.
Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years. He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts. He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca