“Maintaining a healthy financial portfolio requires patience, diligence and fiscal responsibility. Individuals must balance the allure of consumption with the importance of saving for the future. Too often people are tempted to defray the cost of paying for goods by making use of high interest credit cards, loans, or mortgages. Despite the immediate reprieve, over the long term these costs can grow exponentially, ultimately resulting in individuals paying two or three times the cost of what they purchased. Alternatively, those who seek to invest in a home or business can fall victim to financial fraud, as scammers collect down payments for a loan that never arrives. By researching and staying abreast of the rules that govern the market, however, you can avoid these financial pitfalls.
Whether the objective is starting a new business, education funding, or help with personal expenditures, private loans are a common way to assist those in financial need. Unfortunately, as many individuals do not have the credit to qualify for a loan from a bank, they must turn to less reputable sources of lending. Scam artists prey on this financial desperation by demanding upfront collateral in exchange for a promised loan. Individuals in need of a loan should be wary of any lender requiring an advance fee or making an unsolicited call.
Credit cards have long been bemoaned by financial experts as poor lending vehicles that charge exorbitant amounts of interest. However, when used properly, a credit card can be a way to build a strong credit history and also receive compensation and benefits for everyday purchases. Many credit cards offer 0 interest on larger purchases, allowing individuals more flexibility in their payments, provided they pay off the card within a given time frame. By knowing the rules of when and how interest is applied, customers can reap all the benefits of credit card use without paying any additional cost.
The beauty of mortgages is in their flexibility. They can be refinanced and swapped with other lenders who offer a more attractive rate. Home equity loans can be taken out in order to receive an immediate influx of cash. However, this flexibility also leads to one of the most common forms of finance fraud. Predatory financing companies will often promise financial assistance to customers, either through refinancing or a home equity loan, with the ultimate aim of taking ownership of their home.”