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Why leasing a car counts when you have Debt
Posted: Aug 03, 2014
Did you know that the amount of debt you have may influence the type of car rent you can secure, whether you get a short-term car lease renter or a longer year-old car rent agreement. Before signing a contract to make monthly payments on a leased vehicle, consider your debt. Are you paying more in debt than the lease payment is worth? What should you consider before you are up to your eyeballs in debt and having to make payments you cannot afford?
How much debt is it ok to carry with a lease of car? Many experts recommend that those leasing not go over 36 percent of their debt to lease ratio. However, how are that ratio amounts figured and what recurring payments are not covered? Did you know that certain fixed payments for loans, rent, monthly credit card payments, and a mortgage may be included in debt to lease ratio? Living expenses, such as: groceries, petrol, entertainment, and utilities are generally not included in a debt to lease ratio calculation. However, it may help a person to figure the debt to lease ratio and include a car lease payment in the calculations so that would-be car leases have a more accurate picture of whether they can afford a car rent or not.
Reducing debt may help lower lease Payments
Did you know that it may not be possible to reduce a lease of car payment if you are determined to have one of the more expensive models? However, you should consider getting a less expensive car rent. This will help you keep your debt to lease ratio lower. However, are there other advantages to lowering your potential lease payments?
Did you know that having a higher debt to expense ratio may affect your ability to get a rent of car? Companies that provide car leases may reject your application if they feel you have too much debt, credit cards, or loans. Can the applicant handle making lease payments on top of their other monthly payments, without going into debt or bankruptcy? It can also affect a person’s ability to pay their debts on-time, especially if they are having trouble paying their bills.
Isn’t nice to know that following these tips can help you get a lower car lease? Have you ever gotten a car rent before? At EM Lease, we offer short term leasing contracts that are: Flexible, short term, affordable, practical, fully maintained, and simple. We offer vehicles that are new and have come fully maintained, so you do not have any hassle. Our vehicles are also competitively priced within the market. Have your circumstances changed? We offer flexible leases for six to 12 months. Looking for something specific? See what we have to offer at: www.emlease.co.uk
For more information about 12 month car lease, 6 month car rental, bad credit car finance. Please visit: http://www.emlease.co.uk/
Being on a long time lease offers customers flexibility and early termination of a contract will incur a penalty. We want to hear your thoughts on car leasing. Please leave us a comment at: http://www.emlease.co.uk