Financial New Year’s Resolutions: Make 2010 the Start of your Journey to being Debt-Free
Making New Year resolutions is an age-old tradition of making a commitment that’s focused at reforming or changing something negative into something positive. Many people want to make the resolution to solve their debt problems but don’t know how to follow through with results.
If you’re like many people 2009 ended with financial stress and the start of the New Year isn’t looking very bright. The holidays for many mean maxed out credit cards and payday loans leaving very little hope to stay above water let alone get ahead. Getting behind with debt payments causes stress and if you’re three months behind then categorically, those debts are considered delinquent. You’re not alone. Equifax Canada reported that as of May 31, 2009 over half a million Canadians were more than ninety days past due on their credit payments.
Trying to consolidate debt can be like hitting brick walls because bad credit impacts your ability to get a loan from many financial institutions. But, there are alternatives to traditional or payday loans available, even to those with bad credit. One such alternative is a car title loan. These are loans which are based solely on the value of your vehicle, and because these loans are secured, the borrower’s credit rating is virtually irrelevant.
Imagine starting the New Year by paying down debt you thought you’d never be able to make a dent into. Reducing the balance of your credit cards is essential in helping to build up your credit rating. Carrying a balance over 75% of your credit limit puts you into the credit rating “dog house.” Not only is it not favourable, but what if you had a financial emergency? Having room on a credit card is crucial should there be an emergency and you need cash instantly.
That “room to breathe” is also important for the sake of your emotional and physical health. Stress has been known to have a significant impact on an individual’s health, and the constant burden of financial stress is not only one of the leading causes for ill-health, but in relationship troubles. Paying down that credit card debt will provide relief and give you peace of mind.
Paying down credit card debt can seem like a never ending cycle. By obtaining a car title loan, you can put an “end” date on your debt. While it may take longer than 1 year to pay all of your debt, you can make 2010 the year you began your journey to being debt-free.
Is Bad Credit Dampening Your Holiday Season Plans?
The holiday season is upon us and there is a high probability that many of us have already exhausted our credit limits, leaving little or nothing to go-ahead with the much-awaited season’s shopping. Many homeowners find themselves in similar situations during this time of the year when planning family gatherings and refurbishing the house are top priorities. Prices of most commodities, including basic household supplies, tend to rise during the holiday season.
Retailers are able to dictate the prices, as they realize that consumers are pre-occupied with buying during the festive period, without bothering too much about the fairness of the cost. In such a scenario, credit availability becomes an even bigger issue if you have bad credit. Most conventional credit extending organizations are overwhelmed by the large volume of credit-seekers who approach them during the November-to-January period. Thus, chances of a loan request being turned down are even greater since the approving authorities have enough volume to choose those with good credit scores.
Planning to stretch your Credit Card? Think again!
Distressed people, unable to access credit, often turn towards seeking extensions on their credit cards without realizing that they are paying more than the standard interest rates. This happens because credit card companies realize that spending is largely unavoidable for most people during the holiday season and thus, they tend to manipulate the situation in their favor. This is why the holiday season is commonly associated with extensive advertising campaigns by credit card companies, coaxing people to ‘buy more’ with many hidden repayment clauses (hiked-up charges) concealed within the hard-to-understand paperwork.
Considering the predicament of those with bad credit, a car title loan may be the most sensible solution. For starters, this kind of credit is extended without questioning an applicant’s credit history, making it ideal for those who are struggling with a poor credit history. Car title loans are also referred to as easy loans for ’sub-prime borrowers’ which underlines the fact that they are ideally suited for people with bad credit scores. Secondly, car title loans are uncomplicated, as the amount of documentation involved in the entire process is negligible when compared to loans sought from banking institutions. Further, the processing of the loan is transparent, wherein an applicant is duly informed about the loan structure, including the rate of interest charged and the repayment schedule. An applicant needs to be equipped with basic information such as proof of ownership of the vehicle against which the loan is being sought, along with easy-to-furnish documents like residential proof or driver’s license.
The final decision rests with you – whether you want to risk being entrapped with devious, credit card companies or multiply your quotient of happiness by seeking sensible and secured credit in the form of a Car Title Loan.
Bad Credit Doesn’t Have To Leave You High and Dry
If you are one of thousands of Canadians struggling to make ends meet and move forward through these difficult economic times, you may be facing financial challenges you never expected. Having a lower credit score is part and parcel of some of the very real issues facing individuals all across the globe. Living off of credit cards, losing one or more income streams, and trying month after month to pay off pre-existing debt can lead many of us into the bad credit zone. With more and more banks turning a blind eye or a deaf ear to even the most trustworthy clients unless they are presented with a stellar credit report, individuals are finding the lending waters choppy at best.
Fortunately, there is hope for those with bad credit who still need, want and deserve to take out loans. Of course the very act of borrowing money and successfully paying it back will increase your credit score, so it makes sense that finding a solution of this nature will not only benefit the lender and the recipient of the loan, but will assist in improving the overall economic climate as well.
Securing a bad credit personal loan or car title loan can prevent someone from crossing the line from bad credit over to bankruptcy. Car title loans for bad credit are secured using the title of your car. These loans use a paid-off automobile as collateral. Typically, your loan is repaid in monthly installments over a period of one to four years, and is for an amount that is 50% or less of the value of the car. It is possible to obtain car title loans with bad credit. There are many lenders on-line who offer these secure loans, so do your due diligence and research a reputable lender with flexible terms to suit your budget. Car title loan lenders are a very helpful alternative to banks for bad credit loans, and an option many people are turning to in order to get back on track financially.
In addition, the benefits of car title loans outweigh any possible drawbacks. Unlike other loan application processes, the long, drawn out application process is reduced drastically, allowing you to complete the process within the comfort of your own home, and in just a short period of time. No more fretting over medical bills, holiday gift shopping or school supplies for your children. The time is now to take advantage of what many Canadians are finding to be a solid stepping stone in this economy.