How to spot clear warning signals that you’re heading for financial disaster
Most people don’t spot the signs that might help them avoid going bankrupt or losing the house. Going bust on a personal level does not happen overnight it takes and time and bad management in the majority of cases.
Over time the walls start closing in and before you know it you’ve lost the house, the car or the lot. The best plan of attack is to avoid this situation at all cost! You need some foresight when making personal finance decisions, for example the 12 / 24-month interest free deal looks great on the surface but the real cost is hidden over the term of the agreement and people get suckered into them time after time. You need to ask you what circumstances are going to change in the future that is going to allow you to pay that debt, why can’t you pay it today? If you answer honestly then you most probably will walk away.
They don’t teach financial literacy in schools sadly. The rule is simple, don’t borrow to buy consumable items that lose value it’s just not smart. Learn to go over the fine print with a microscope, you will need to do this to find the hidden land mines. Think national subprime disaster, I can’t offer up a more valuable example. Consider this also, the cheaper the item the worse the finance package is going to be for the consumer. To make … Read the rest