subject: Credit Solutions: Look before you Leap [print this page] Credit Solutions: Look before you Leap Credit Solutions: Look before you Leap
With economic crunch recovering, people are devising their own ways to get rid of their debt which had mounted up. They always incur big debt as they don't have enough cash and always need credit. Incidentally, many credit solutions providers have also sprung across all over the world. But, it is warned that you act wisely while selecting the provider as not all of them are good enough. The first and foremost step that is recommended for you is to clearly determine your demands and the way with which you want to go about with clearing your debts.
Some of the exercises that you can possibly do are to analyze your credit report (you may even think of applying for credit consolidation), to check your susceptibility to bankruptcy and to decide to clear the credit fast or slow. The most accepted way, as is the trend today, to clear the credit is to pay them as an easy monthly installment, which we often referred to as EMI. But let us look at all the other options too.
Some of the solutions that are surefire way to make you debt free are being highlighted here. The safest solution for you would be to resort to Installment credit. But that depends on the particular source from which you have taken the credit. However, you would have to shell out a higher rate of interest here. And that may make you pay an amount, which is much higher than the debt altogether. An example here is that of a mortgage loan. The next in the line is Charge credit, where you are entitled to paying the whole credit at the end of each month. The interest rates too are a bit lower here. But it may pose a problem to you if you fail to arrange your finances within the stipulated time. American express offers this option to its lenders. Last, but not the least, there is this Revolving credit wherein you are allowed to bear only a certain value of the entire debt as and when you want, upon the agreement that you will pay them month on month as installments or as a complete amount at the end of the particular month. MasterCard can be a good example here.
Whichever credit solutions you choose, make it sure that you have a clear picture of your game plan in your mind and that you have taken the aid of a good provider. And in this pursuit of yours, it is worthwhile to look into maintaining your credit score. A higher credit score is always better than a lower one for your future prospects. You may have a hard time trying to make yourself debts free, but the amount of freedom and happiness that you get once that is done is mind boggling.
