As a huge xxxholic fan i have already adapted to the concept of hitsuzen - fate. For those who don't accept such ideas then let’s follow Newton’s 3rd Law: For every action there is an equal and opposite reaction.
How is this related to debt recovery?
For every item purchased/service requested through credit cards or loans an equivalent payment is required. And one of the dept pools being created by ones actions are Revolving credit card debts which not paid on time can be a financial hazard or getting loans to pay off other loans or debts.
Paying the minimum amount is okay if you're thinking short term, but what about the long term? When is your target date to pay it off?
Here are 3 basic tips where you can use to lessen your debt.
1. Shopping Attitude
Self-control is the basic foundation in debt recovery. If you see something nice to buy then take a moment to breathe and think if you really NEED that item. Consult your budget if you can spare some cash else DON'T BUY IT.
2. Save to spend money
Factor in your loans and credit cards debts in your budget. Try at least to keep a percentage of your pay check for your self or something that you’re planning to buy. By doing so you may forecast what you can do with it once it has already increased to a huge amount.
3. Create money
Business is always the best route to financial freedom. Start small. There are many opportunities out there if you have the WILL to venture for money.
Author: Yue
Auto Loan Options for People with Bad Credit
Internet surfers with bad credit looking for an auto loan are bombarded with advertisements most days. Many of these ads are truthful in their bad credit auto loan options. However, there are many things to avoid, and this article will describe some of those.
Directly financed auto loans for people with good credit are a bit different than those with bad credit. People with bad credit are expected to pay more of a down payment as well as a higher interest rate on their auto loans. Many creditors won’t even extend an auto loan to those with bad credit. Depending on how bad someone’s credit is, auto loans can range from a 20 – 50% down payment requirement, interest rates from 5-26%, and amortization (the length of the loan) anywhere from 2-4 years.
This may sound like a lot of bad news for bad creditors looking for an auto loan. But with some good planning and foresight, these auto loans can actually help people with bad debts rebuild their credit history.
The worst situations in bad credit auto loans show up when car dealers artificially inflate the pricing or interest rates on their cars. Auto dealers who specialize in bad credit loans will take a car normally selling for $5,000, inflate the price to $8,000, take a $2,500 down payment and then finance the purchase at 24%. Now the bad creditor will be in debt to the auto loan company for an inflated price that isn’t indicative of the vehicle’s real value. A way to counteract these types of sneaky bad credit auto loan dealers is to check the value of the car you are looking at, first, and then only pay $200-500 extra then what’s listed. Only in exceptional circumstances would you ever pay more than this for a car.
Two different ways of selling a car have emerged recently with the new, Internet economy. The first is called the ‘dealer network system’. Auto purchasers can get a loan regardless of their bad credit history with this option. Essentially, a potential customer looks at a car on a website, and then answers some basic questions if interested in buying. This information is then passed along to a dealer specializing in bad credit auto loans. Since there are no fees involved, this can be a real boon for the bad creditor looking for a decent car loan. However, with this system, there is no way of researching the auto dealership you are about to do business with.
The other new option is called an application service. In this situation, a person with bad credit applies online for an auto loan, and the financial information is then sent to multiple lenders at the same time, with the hope that one or two will be willing to take the credit risk. If the system works, several dealerships with fight for the customer, using price and convenience as their selling points.
by: Peter Lenkefi
