Saturday, November 30, 2013

4 Poor Life Decisions That May Still Be Costing You Money

You make decisions every day that will impact your future. It is not always something you realize in the moment. However those choices that may have seemed unimportant at the time may still be having an effect on you today. Below are four poor financial decisions that are likely still costing you money.

1. Defaulting on a Car Loan

Whether it is a few missed payments or a full out repossession, car payments will affect your financial resume. Delinquent payments are reported to credit bureaus. A repossession can put you in a position whereby you may have difficulty purchasing another car with a loan. Additionally, if you do obtain another car loan, you will most likely pay steep rates because of your previous payment history. This continues to affect the amount of money you will pay out on a monthly basis.

2. Defaulting on a Lease

Breaking a lease early without meeting your financial obligations to a rental home or apartment will certainly impact you on your next move. Your future landlord may require you to pay a higher deposit because of your previous default. As well it is negatively reporting on your credit which affects your rate if you choose to purchase a home. This as well will cause higher monthly payments. In more extreme cases the poor credit reporting could cause you not to be approved for the home loan.

3. Maxed Out Credit Cards

Credit cards can be a great resource. However, using your credit card past the allotted amount can cost you dearly. The rate for paying late on a credit card according to can cost you as high as thirty five dollars in late fees. As well your interest rate can reach as high as 29.99 percent. This will increase your payment drastically. And almost more than anything else the reporting on your credit can cause a big drop in score.

4. Co-Signing

Co-signing is certainly a noble gesture. However, it makes you responsible for someone else's financial habits. Co-signing causes more people credit problems than they know. Just as all the various institutions report negatively to the credit bureaus when you pay an item late or default on a loan, they do the exact same reporting when your co-signee makes his or her payments late or worse, defaults on said loan. In the long run, you may not be doing them or yourself any favors by carrying them with your name and credit. Everyone has to learn responsibility, and sometimes enabling a friend or family member's bad habits can seem like helping kindness, when in truth it will further harm you both.

Your credit is the way financial institutions decide to offer you a loan for a home, car, business and more.It is almost impossible to function in today's economy without having good credit. Credit repair can help you work through your financial history and positively affect your credit score and financial standing, giving you the chance to achieve all that you want to achieve.

Enhanced by Zemanta

1 comment:

  1. Maxing out credit cards is the worst anyone can do. I can't imagine that idea that will put us in the grave of debts.


Join 1000's of People Following 50 Plus Finance
Real Time Web Analytics