While we’ve all been given personal finance advice, few actually end up doing anything with it. Instead they incur debt by taking out loans, making excessive purchases or having to front unexpected bills. The more you know, the better able you are to avoid these actions that hurt your credit score, savings account and overall financial future.
Below are three common money mistakes that can be easily avoided:
Making Money Decisions Not Based on Facts – Anyone can be fooled by credit card companies who promise to help lower your payments by offering 0% APR financing. However, people often get themselves into trouble because they don’t read the fine print and don’t take the time to calculate the actual costs involved with transferring debt.
Not Having the Right Credit Card – Too many people sign up for a credit card based on the short-term “rewards” they will receive, instead of thinking about the long-term monetary repercussions. The best way to find a card that’s right for your needs is to shop around and compare rates and services that make the most sense for your situation.
You Don’t Take Out Responsible Loans – Sometimes large purchases require you to take out a loan. Although taking out a loan means you’re taking on debt, it’s not necessarily bad debt. In order to ensure you are making the best decision possible when taking out a loan, do your research and don’t depend on just the face value.
For more information on how to avoid making costly financial mistakes, please visit Fox Business.