Making Financial Decisions: Loans (2017 Update)
Do not fall into these traps of consumer financing or loans. Be smart with your money and make good financial decisions. Sometimes, consumers do scary things with their Money. Well, fear is good. That is why we enjoy watching horror movies, put on scary clothing, and walk around like ghosts for ride roller coasters and Halloween. Fear is an essential health tool, as it keeps our cholesterol levels down. Moreover, it helps us to be cautious while driving. Here are some of the scariest things we do using our money.
Taking an Auto Title Loan
Circumstances in life compel us to do certain crazy things, most of which are scaring. Since you are badly in need of cash, you choose to leverage your greatest asset – a car. The beauty is that most banks will not go into detailed credit check once they have your car titles. They will hand over the cash to you, which you need to repay, with some interest on top. But because the interest rates are always hefty (commonly 25 percent), you might not be in a position to clear it off. That is when a daring individual takes another auto title loan. Please avoid it – it is a dead end road.
Considering Too Much of the Rent-To-Own Items
Rent-to-own items gain popularity for a reason. If in any case you need a bed, refrigerator, or a television, you can decorate your house for a low monthly price. But the problem is that you leave with numerous financial stresses.
Most of the rent-to-own stores charge more for furniture, electronics, and other appliances. If you have been doing this for years, you will discover that you have paid for over $3000 to rent a television that you could have otherwise purchased with only $900.
Another scary thing we unnoticeably do with our money is we pile up bank overdraft fees. If you just squander your money without checking the status of your account, you will unfortunately discover later that the account went dry. And you are only racking up bank overdrafts.
Take caution dealing with overdrafts. Most banks make fortune out of your misfortune. To explain how devastating these fees are, the Consumer Financial Protection Bureau took the initiative of stating it explicitly. “If a consumer borrowed $24 for 3 days and repaid a median overdraft fee of $34, then the loan carries a 17000 annual percentage interest rate.”
Taking loans from Money Lenders
In addition, we engage in scary activities when we take certain exorbitant loans. “69 percent of newbie borrowers use payday loan to settle recurring expenses like food or mortgage.” – Charitable Trusts. This is like putting yourself into a catch 22 situation because when you take a payday loan to pay for recurring expenses, you obviously don’t have extra cash to repay the loan, but still taking it anyway. Any good money lender will be able to provide you with sound financial advice regarding loans. You must be extremely wary of money lenders that are just eager to give you a loan without considering your situation. It is highly likely that they are engaging in predatory practices and are simply not looking out for your interests. In order to find yourself a good moneylender, you have to do research into moneylender Reviews. That way, through various borrower ratings and reviews, you will be able to find yourself a good money lender. Or a money lender that truly has your interests at heart and are not out to purely make money from you.
Before you make any purchases or financial decisions, please do the due diligence in calculations. That way, you will be more inclined to make better financial decisions. For more information, visit the best money lender review website on the internet. Or drop us an inquiry today!