| |
| |
|
Debt Consolidation Information |
|
|
|
Debt Consolidation - Be Careful When Trading in Your Car
The automobile has long been recognized as the classic American status symbol. America's millions of miles of roads and overall lack of long-distance mass transit leave the automobile as the primary method of transportation for most Americans. Because so many people spend so much time in their cars, they often use them to make a personality statement. The car is an extension of the driver. Unfortunately, the debt incurred to pay a car is also often an extension of the driver's own financial problems. Recent statistics show that the average auto loan is issued for 101% of the purchase price. How can that be? It turns out that many Americans, in their desire to maintain status, usually trade their cars in for a new one while they still owe money on it. The high rate of depreciation on new cars means that consumers often owe more money on their auto loans than their cars are worth, and they make the situation worse by trading in that car on a new one while still owing money on the old one. They simply consolidate the balance of the old loan with the principal of the new loan. Auto manufacturers hit us with a constant barrage of advertising for the latest and greatest models of cars, trucks and sport utility vehicles, along with their latest sales techniques of rebates, discounts and add-ons. Consumers often trade keep their cars only until the desire for another one comes along and then head out to the dealership to trade the old one in. This is usually done without any regard for how much money is owed on the existing vehicle, leading to the consolidation loan that adds the unpaid balance from the old loan to the new one. It isn't smart to owe more money on a car than it is worth. Cars are generally insured for the replacement value of the vehicle. If you purchase a car and roll $5000 of debt from the previous vehicle into the new loan, you are now driving a car that is not only worth less than you owe, but is also insured for less than you owe. Should you find yourself in an accident, you'll have a wrecked car and a heavy debt, which is not a good combination. Here are some tips for avoiding this scenario: When you make a decision to purchase a car, consider the length of the loan carefully. Most cars lose more than half of their value in five years or less. Try to keep your loan duration as short as possible. An automobile is a valuable tool to own, but it shouldn't own you. ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to personal bankruptcy, debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding mortgages and home equity loans.
MORE RESOURCES:
Debt-Consolidation - Google News |
|
|
|
RELATED ARTICLES
Get Out of Debt It is said that a pet tiger cub can become dangerous if it tastes blood. It will stop at killing no one, not even the people who brought it up. Debt Consolidation for Homeowners: Saving Grace for Inept Borrowers You cannot understand the importance of being a homeowner until you enter the loan market for debt consolidation. Debt consolidation for homeowners is a responsible way of getting out of debt. Alternatives to Filing Bankruptcy Deciding to file for bankruptcy is a decision that should not be taken lightly. Too many people opt for this decision before finding out what other alternatives are available to them. Debt consolidation - More Options for Reducing Credit Card Costs Borrowing money against your credit cards has always been among the most expensive ways to borrow money, and when you fail to pay your bill in full each month, borrowing is exactly what you're doing. You're not alone; the average American household now carries more than $8000 in credit card debt. Negotiate Your Way Out Of Debt Eliminating your debt is a daunting task. What can you do to get out of debt fast? Believe it or not, negotiation along with proper financial responsibility is your foothold out of the rat race. Debt Consolidation Benefits If you've ever been in a situation where you needed money that you didn't have, you probably already know about loans and credit cards. Here is a brief Explanation on What both are:Loans A loan is a type of financial aid which must be repaid, normally with interest. What is the Difference Between Unsecured and Secured Debt? A secured debt is a debt in which the creditor maintains a security interest in an item or piece of personal property such as a house or an automobile. With secured debts, if you fall behind on payments, the lender can repossess the property that originally secured the debt. 10 Pointers on College Loan Consolidation Should I consolidate my college loans or not?1. Still in school, yes! Rates are low, but they're scheduled to go up. Debt Consolidation Primer - Four Things You Can Do to Get Out of Debt Problem debt is rampant throughout America. In addition to mortgages and auto loans, the average household in the U. Reducing Debt Through Lower Interest Loans It happens to the majority of us, credit card debt accumulates and before we quite realize it, we are carrying a debt load that is far beyond our means. When this happens, we need to take immediate positive steps to knock down the debt as quickly as possible. Debt consolidation - Options for Reducing Credit Card Costs Americans are using credit cards more than at any time in history, and credit card companies are reaping record profits. One of the reasons that the credit card industry is so profitable is that so many of us use our credit cards unwisely. Free Yourself Of Debt and Worry with Debt Consolidation Debt consolidation programs can help you lift the burden of excessive debt and potentially save you hundreds of dollars a month. Debt consolidation professionals will work with you and your creditors to design a plan to help you lower your payments and reduce your debts quickly. When Your Bills Are Piling Up Here Are 6 Different Ways to Consolidate When it comes to debt consolidation some people dream of day when all their bills will disappear. Next to hitting the jackpot, a debt consolidation loan is some times the only way out for a debtor. How to Find the Best Debt Consolidation Secured Loan If debt is a way of life for you, it's time for you to consider finding a debt consolidation secured loan. This loan is designed so that you can pay off some or all of your debt, leaving you with a single low monthly payment instead of multiple payments that keep increasing as time goes by. Consolidate Debt to Help Get You Out of the Quagmire Will you agree with me if I tell you that, the key to financial success is to live within your means? This is an old belief that modern day income earners have completely forgotten. This is because it is now extremely easy to get into financial trouble. Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills For millions of homeowners, refinancing is the perfect way to consolidate debts. You can consolidate your debts, eliminate outrageous interest rates and fees, and make one low monthly payment. The Benefits of Debt Consolidation It is quiet easy to get into financial difficulty having a home mortgage, a car truck or SUV loan and credit card repayments. There are now considerably more individuals than ever before with greater debts than they can afford. Going Debt Consolidation Way! We are aware of the fact that it is easy to get into debts, but on the contrary overcoming it is very complicated. Now give an end to your fear of lenders as more and more companies in the UK are offering solutions to tackle debts of individuals- both home owners and tenants. Debt Consolidation Loan Debt Consolidation of Different LoansDebt consolidation refers to the restructuring of a large number of unsecured debts into one low monthly payment, while eliminating interest and reducing the total amount owed to creditors. Debt consolidation has become popular with people as they cope with increasing amounts of credit card debt, home mortgage loans, car loans, and student loans, along with low credit ratings and threatening phone calls from creditors. 16.4% APR $5,000 Auto Loan...HELP! Are you the victim of a high interest rate auto loan? If so, the following email discussion may help you. Read on:DEAR LoanResources.
|
| home | site map |
| © 2008 |
