Relieve Your Debts!

A couple of weeks ago, this blog passed on some helpful advice to consumers who are planning to buy a car (see 4 rules for negotiating the best deal on auto loans). Yesterday, three publications provided some other hints that are worth passing on.

Auto loans essential part of the purchasing mix

Forbes on MSNBC urged car buyers not to be too dazzled by the sticker price. Obviously, you want to get a great deal on that, but there are other, equally important considerations, such as how a particular vehicle will suit your daily needs.

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Young people will handle money better in their student days and could avoid debt management issues if they are educated about the subject in their teens, an expert has said.

Managing director of Yvonne Goodwin Wealth Management Ltd Yvonne Goodwin said the time for parents to teach their children is from the age of 15 or 16, when they get their national insurance cards and can have Saturday jobs.

Using this money to develop savings and spending strategies and set budgets can help prepare for the future, Ms Goodwin suggested, stating: “This is real money that has been hard earned and hard saved and usually gives more of an incentive to spend it wisely.”

The expert advised against trying to tell new students how to manage money as they are starting term, since this is when they are “too excited” to pay attention.

Young people may encounter more issues of debt in the next few years as tuition fees rise, with some facing charges of as much as £9,000 a year.

Labour Party leader Ed Miliband said in a BBC TV interview that his party will cap these at £6,000 if it regains power in 2015.

According to the Citizens Advice Bureau (CAB) in Oxford, the number of people who are worried about debt problems, repossessions and homelessness in the region have increased dramatically this year.

The data gathered by the charity shows that there were 230 more enquiries in the first three months of the financial year compared to the previous year. Compared to the 641 enquiries made in the first few months of 2010, the CAB recorded 871 this year.

The number of people with housing enquiries, including people who either needed help with homelessness or who were facing eviction or repossession, rose sharply in the first quarter of the year.

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Long-term debt falls under the category of long-term liabilities on a company’s balance sheet. Because the government allows a tax deduction for interest payments, profitable companies have an incentive to use long-term debt rather than equity financing to raise capital. However, too much debt increases a company’s financial risk, placing it at risk of default.

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