RRK Cash Solution

Archive for October, 2009

A butcher put up this notice in his shop door: “This business has been compelled to close owing to bad debts.  A list of names and amounts owing will shortly be shown.”  Money rolled in immediately.  The meat shop opened again in no time, and business is flourishing.  Although some financial experts are saying that the end to the economic slowdown is seen, money is still hard to come by nowadays, whether people admit it or not.  Even though, money is coming in trickles, expenses, on the other hand, keep coming, too, and increasing weekly.

If the money people are making is not enough to cover the bills and living expenses, most resort to borrowing and end up in debt.  Of course, there are good debts and bad debts.  Getting personal loans online is a good one because it is fast, convenient, and secure.  On the other hand, charging things with the credit card can be dangerous because of hidden charges and fluctuating interests.  The point is there are many ways for people to get into debt, particularly during financially hard times.  To avoid bankruptcy and financial ruin, people should look at the two common sources of debt traps.

First is spending tomorrow’s income today.  Even if the signs of economic downturn are quite apparent, people cannot let go of their old ways and continue feeding their financial disease called “shoppingnitis”.  These people are gripped with an addiction to buy or purchase items they don’t really need compulsively.  Most of them know that something is wrong with their urge to shop excessively but they feel they cannot prevent themselves from doing it.  Unfortunately, getting into bad debts today is faster through the use of available technology and the modern way of using money through credit card transactions.  One classic example is buying a new mobile phone, the latest laptops, and the trendiest appliances—even if the old models are still in good working condition—using a credit card.  With all the juicy monthly payment terms and supposedly zero-interest deals, who wouldn’t be tempted?

The second reason why people fall into debt traps is the unwillingness to change one’s lifestyle when circumstances have changed.  Losing a temporary job or even a permanent unemployment situation is hard for everyone to manage.  When money coming in is less than the money going out, expect to experience a negative cash flow.  If people continue to spend the way they used to, sooner or later they would be living in debt.  Good thing, there is still a loan for bad credit but people should also use this sparingly.  Remember, people can still control their finances, so they can maintain their present resources and survive the financial crisis.

If you want to buy a car and don’t have enough money, you can opt for financing a car for personal needs, purchase loans or leasing. Leases and purchase loans are the most common methods of automobile financing. Leasing vs Buying a Car- what’s the right solution for your needs?

Leasing is one of the most used forms of financing, being affordable for most individuals who want to pay for only a portion of a vehicle’s cost. Leasing operation is an alternative to bank credit, for proper purchase of cars, machines or buildings.

The leasing company provides the right of using the car to an individual or company, for a certain period of time. The first payment must be made at the time when signing the contract — for the month ahead. At the end of the lease, the client may buy the car or extend the leasing contract. The car can be bought either at the end of the lease, or after 12 months from the beginning of the contract. Lease payments involve a depreciation charge and a finance charge.

The leasing company will ensure the car, but insurance costs will be supported by the user. The monthly rates can be reduced by paying the residual value (20% of the car value) at the time when the contract ends. The initial commission is applied to the total value of the car. Early repayment can be made at least 12 months after signing leasing contract. Traveling outside the country by car requires the consent of the leasing company.

Buying a car involves the purchase of a vehicle, paying for the entire cost of the vehicle. The client must make a down payment, being also responsible for paying an interest rate, based on his credit history and sales taxes in cash. The first payment must be made a month after signing the contract. Loan payments consist in a principal charge and a finance charge. Buying a car builds equity, while leasing doesn’t.

In case if buying a car, the monthly payments are higher. The client is also responsible for unexpected cost of repairs after warranty has expired.