Loaning money to a friend or family member. You all know what I am talking about on this one. You have that friend or family member that wants to borrow a sum of money and pay it back later with extra. Later never comes. You might as well throw your money away and disown your friends and family before you loan them a large quantity of money. Five dollars here or there is fine. Most big money loans from family or friends end up being enemies or meet each other in court. Unless you can really trust them, you probably won’t get paid pack. Or if you do get paid back it may be much, much, later. I am not saying you will always get ripped off by family or friends. But for some reason, they are the ones that will rely on you to cut them some slack.
Compared to buying a used car, buying a new car will save me money. Totally false!!! Did you know the average car loan is over $400.00 a month for over 80 months? That’s a lot of money if you throw in car insurance also. New cars depreciate in value as soon as you drive it off the lot. You may think that the new car won’t break down as much as a used car. You may think you could buy someones lemon if you buy a used car. That’s false too. New cars made these days break down just as much as used cars do. You won’t save money with this way of thinking. Save some money; buy a good used car with a small loan. Or buy a good used car outright to own.
Do you think you can save money with debt consolidation? I hope you don’t think you will save money. Debt consolidation is a hidden legal scam. Sure you can put all your bills into one convenient loan with a smaller payment each month. But guess what? Instead of a 10 year loan, you just gave yourself a 40 year loan. That 40 year loan will make the debt consolidator thousands, maybe even hundreds of thousands of dollars. When you use a debt consolidator, they will tell you the world to make you think you are making the right decision. But you are not saving anything. In fact you will be paying out the wahzoo. They want your money for 40 years instead of just 10 years. They know you are bound to make late payments or fault your loan the longer you have it. They get late payment fees and money when someone faults a loan. Plus all that money you paid them in interest through 40 years. In the long run, it means more money for the debt consolidator, none for you.
After my divorce he/she will pay for everything because they owe me alimony/payments. That couldn’t be further from the truth. I know you may not think divorce is a way to save money. But people actually think that their credit cards and bills in their name will be paid by the other party if they have alimony coming to them. Anything in your name is your responsibility. If your name is on that credit card, bank account, or bill, you are required to pay the balance. The judge that assigned money to whomever, has nothing to do with things you personally owe. Pay off everything in your name before, during, and after a divorce.
If I declare bankruptcy I will clear my bad credit in a few years, instead of always having bad credit. Wrong! Don’t ever declare bankruptcy if you plan on ever having good credit with a bank. If you have bad credit, you can fix it without declaring bankruptcy. If you declare bankruptcy; sure you may have a cleared credit record in a few years; but you will always have to tell the loaner that you declared bankruptcy for the rest of your life. That’s right, every time you apply for a loan, for the rest of your life, you have to check that “Have you ever declared bankruptcy” box on the loan application. Then the person loaning you the money will be more likely to turn you down anyway. You are better off with bad credit and a chance of still fixing it. Fix your bad credit everyone. Bankruptcy is not the easy way out.
Thanks for reading my blog. See you tomorrow.
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