Guest Post: Top 5 Tools to help budget for a bad credit car loan

Picture courtesy of BMWcartuning.com

While a bad credit car loan can help you get on the road, it is just as important to make sure your finances stay on track throughout the process. There are now more bad credit car loan companies than ever before, offering a wide range of options to people who have or are dealing with money issues. But investing in a car, and the car loan that comes with it, can be either a blessing or a curse and it often depends on how the loan itself is managed. As the government’s MoneySmart website points out, “It is easy to borrow money these days – and even easier to get into debt.” So to help make sure debt stays a thing of the past, here are five of the best tools to have on hand when you are budgeting for a bad credit car loan.

1. The Bad Credit Car Loan Terms and Conditions Booklet

The terms and conditions of your bad credit car loan will help you figure out the most effective way to manage repayments, and what different options you have. Some bad credit car loans, for example, offer additional repayments that could help you get ahead if you have extra money you can put towards the loan. Others could offer an overdraft or extension service that makes it easier to deal with the loan if other unexpected costs come up during the loan term. Whatever the case may be, the terms and conditions booklet is a resource that can help from the start to the end of a bad credit car loan.

2. Car Loan Calculators

A car loan calculator offers an easy way to see how much you will pay over the course of the loan. It can be a great way to compare bad credit car loan options, as well as a tool to help work out how much impact additional payments or fees could have on the loan. There is a wide range of free car loan calculators available online, including on car loan provider websites, so you can search for one that provides all the information that you need. Then it is just a matter of typing in the details of the loan you are considering and considering the numbers.

3. Budget Planners

A budget is one of the most useful money management resources available but it can take time to draw one up alone. Budget planners make the process easier by providing all the categories and options, so that it is just a matter of filling in the blanks. While it is possible to do a budget plan just for managing a bad credit car loan, a more comprehensive option like the MoneySmart Budget Planner could help keep all of your finances in order so that it is not just your bad credit car loan that benefits.

4. Automatic Transfers

While the automatic transfer feature of most Internet banking sites is often ignored or taken for granted, it is an incredibly simple way to make sure repayments are always made on time. Most loans now have this option available, so it is just a matter of filling out the transfer authorisation form and making sure there is enough money in the account when it is time for payments to come out. This tool not only sets up consistency for repayments, but also reduces the chance of any additional fees or interest that could come from a late payment.

5. Blogs and Websites

The online world is full of useful information, tips and strategies when it comes to managing money. There are blogs and websites specifically designed for people dealing with bad credit, car loans and even bad credit car loans. These websites become a useful tool when managing a bad credit car loan, offering further insights into the structure loans can take, the unique terms that often come with bad credit car loans and ways to manage loan repayments. Whether you go to a well-known blog like the Barefoot Investor or Get Rich Slowly, a website like MoneySmart or a financial hardship service such as Debt Relief Australia, the information and resources there can become a useful tool throughout the life of a bad credit car loan. Budgeting for a bad credit car loan can happen before, during and after you have bought the actual car, so it is important to consider all of the resources available to you. By making use of the five tools above, and any others you find along the way, you should be able to enjoy your new car without worrying about financial strains.

Author Bio: Bill Tsouvalas is founder and managing director at http://badcreditcarloans.com.au. He has been working in the vehicle & asset finance business for over 8 years. Join the discussion with Bill on Google+