Remember, Financing Can Hurt Your Credit

Here are some ways that financing can hurt your credit:

1. Repossession or voluntary repossession-credit can be severely damaged if you have a repossession on your credit.

2. Theft- if you finance a vehicle worth less than you owe, you will owe the bank the difference unless you carry gap insurance.

3. Accident- Pretty much the the same applies here as with theft.

4. Depreciation- Cars and trucks depreciate substantially. When you are done paying for a $15,000.00 vehicle, you are paying the same amount each month for a vehicle that has much less value than when you purchased it.

5. Repairs- No matter how well you take care of your vehicle there will be breakdowns and repairs that will cost a substantial amount. If you still owe on your vehicle you will still have that same obligation along with the costs.

If You Must Finance

If you have to finance because you have no cash, finance for as short a period as possible. The longer you finance, the larger the interest payment will be to the bank. Remember that when you finance a vehicle that they depriciate substantially. Keep in mind how short the life of warranties are especially if you drive a lot. Also, regardless of maintenance and repairs , you will still have the monthly obligation. Insurance on the vehicle is another item to consider. You will likely have a higher premium if financing a vehicle.

Renting and Buying a Home

There may be no equity or tax benefit in renting, but it is a way to help save money for a home. It is beneficial to save before you commit to a home. You have to work out the numbers. Of course you want a nice home in a nice neighborhood, but make sure you are comfortable with the numbers. Also, make sure you can keep up with the payment before you sign. Buying a home is the biggest investment you will ever have. Do your homework and you will keep yourself debt free.

Fairfield Office

The new office is up and running. We have appointments available for you. Give us a call and we can give you the details. Please check out the location page so you can see which office is closest to you.

Some Statistics

1. Nearly 2.7 million personal bankruptcies were filed in 2005.

2. 70% of Americans live paycheck to paycheck.