Getting Credit Card Debt Relief after an Auto Purchase
Every person will encounter financial challenges from time to time. This means that individuals are often put in a situation where they feel the pressure to make a quick financial decision regarding their debt. Many car owners have found themselves in such a situation. When faced with the choice of whether or not to transfer the total balance of the car loan to a new credit card, what is the best choice to make?
Sometimes the person transfers the total amount of the auto loan to the new credit card. The person must then pay the minimum amount owed each month in order to avoid penalties on the new card. The person also has to work to make sure that the entire car loan is paid off completely within a certain amount of time to avoid double-digit penalties, fees and interest and do so without falling behind on any other financial obligations.
The best approach is to simply consolidate any credit card and auto loan debt into a debt counseling program. The credit card debt relief program gives the person latitude and flexibility that would otherwise not be available under the credit card transfer scenario. The person doesn’t have to worry about the pressures of catching up with the past due amount on the new card and doubling up on subsequent payments to satisfy the minimum balance requirement. He or she doesn’t have to plan for a sudden rate increase after becoming acclimated to paying a certain amount as one would in the auto loan credit card transfer scenario when the introductory rate ends. The individual doesn’t have to shuffle between credit cards to keep up with the minimum balance requirements for the new credit card. The person simply works through a comfortable payment schedule without worrying about fees or penalties until the car and other debts are paid off.
Some people are able to handle the auto loan transfer balance with no problem if there aren’t any student loans, mortgages, outstanding medical bills or other debt obligations to manage. Most people, however, would be in a better personal finance situation if they entered a credit card debt relief program. In these programs, the person gets the advantage of having maximum flexibility in repaying the debts and access to personal finance coaching if desired.