Personal Finance Basics – Should You Use an Agency to Settle Your Credit Card Debt?

Do you know which is best – using a credit card debt settlement agency to sort out your debts or sort them out yourself? There are pros and cons for each and a lot depends on your attitude and how good you are with your personal finance basics. Use an agency if you are uncomfortable with dealing with your debts by yourself. There is research involved and if you think you are not competent with doing this then an agency would be the best for you. Also, you could benefit from an agency for their professional advice.

A good agency will surely be able to help you whatever the reason you choose for using one. But, you must use a competent agency. There are ads claiming they can settle your debts overnight, or other similar claims. I am sure you have seen them. Be aware that no credit card debt agency can do that. If you read their claims carefully, you will usually find some ‘get out clause’ somewhere that will cover them in the event you complain.

Select an agency that has verifiable credentials or a good reputation. And make sure you check their credentials and check a number of people about their reputation. If an ad invites you to call them, make sure the number is not a premium number. That is one indication that the agency will not have your interests high on their priority list. Also avoid the ones with very low fee and no reputation.

Once you find your agency, do not hide any of your debt related information from them, no matter how bad your debt. It is extremely important they have your full information if they are going to help you effectively.

Once you have your agency it is also important to follow their advice. You will be paying them to help you from money you can ill afford, so it is imperative you follow their advice. Otherwise you will lose your money and end up even further in debt. Once you do this and are settled into your new regime, take the opportunity to work out what they are doing in order to improve your personal finance basic knowledge.

Advantages of Financing a Cheap New Car

Financing a cheap new car offers a lot of benefits. This is the reason why most car buyers are doing their best to obtain some of the auto loans offered by lenders to finance this type of vehicle. However, not all car finders know these benefits. As a result, most of them would end up with bad credit. In case you are planning to finance a car, try to consider financing one of the available cheap new cars and obtain the following benefits.

1. A lot of financing offers

One of the most common benefits obtained from financing a cheap new car is the abundance of offers from banks and other lenders. As a matter of fact, a lot of financing agencies are willing to provide financing for creditors who are planning to finance affordable vehicles.

This is because cheap new cars are easy to finance and involve lesser risks on the part of lenders. In the event that you fail to provide the needed payments, the lender has lesser to lose since the vehicle costs less. In addition to this, the financing provider could easily repossess the vehicle that you are financing.

2. Lower interest rate

Aside from the abundance of offers, financing an affordable car also involves lower interest rates. Lenders usually provide lower rates on this type of vehicle since the risks as well as the amount of money involved are minimal.

This is also the reason why most car financing experts suggest that bad credit holders should finance cheaper cars since this could help them reduce the premiums that they pay each month.

3. Lower monthly premiums

Since the interest rate involved as well as the price of the vehicle is low, the monthly premiums involved in this financing are also low. Due to this, you have all the chances of paying the financing off on time.

In addition to this, you can also increase your credit score. However, you just need to provide the monthly payments on time. Any late or missed payments would surely ruin your credit score so it is better to provide prompt payments.

4. Lower down payment

Finally, financing a cheap car also involves lower down payments. Since the price of the car is cheaper, the percentage that will be calculated as your down payment would also be lower than those that are paid by creditors who preferred to finance high-end or more expensive vehicle types.

Are Debt Consolidation Agencies a Good Idea to Help Lower Debt?

No one likes to be burdened with debt. However, many of us find ourselves in that very position. This can prove to be a very constricting financial situation since excess debt and bills can serious drain a person’s finances. However, there several advantages if you consolidate your debts and this article will mention the positives of this debt management program.

The Way Debt Consolidation Works Is Simple:

The consolidation agency will pay off your existing debts with a new loan. This will then consolidate all your debts into this one. In some instances, the agency could even negotiate the balance you owe on your debts down to a lesser amount prior to the consolidation loan payoff.

Now, you would only have to make one monthly payment on your new loan and this will ensure that you have more financial freedom since you will no longer be saddled with paying so many monthly premiums.

The effect of having to pay only one monthly premium will have a very positive impact on your monthly budget, you will be able to divert more income towards family, household, and professional needs. You will also not be under the previous amount of pressure to come up with the multitude of minimum monthly payments that were previously required. This creates the necessary breathing room required to get out of debt safely and sanely.

So, are debt consolidation agencies a good idea to help lower debt? Yes, absolutely. Debt consolidation companies provide a very helpful service. With the help of a reliable debt financing agency, no borrower will need to be in such situation.