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Wednesday, August 30, 2017

Money Disasters and How To Avoid Them


We all need money, and let’s face it, most of us wish we had more of it! It’s what makes the world go round, and we need as much of it as we can get our hands on. Managing your money is full of pitfalls and traps that can easily trip you up, but it’s difficult to know about them because they’re not exactly clear to see, but if you carry on reading you’ll know what to avoid and how!
Poor Credit

One of the biggest things that holds people back with their finances is having a poor credit score. It’s something you need to avoid, but how does it come about? Well, your credit score is representative of how well you are at paying back debts. This goes for your credit card, your loans, your mortgage; everything! The lower your credit score is, the less likely that you’ll be able to open bank accounts and take loans out so you need to get it sorted. Luckily websites like repair.credit exist. These websites are able to help you repair your credit score so that it’s in a good standing, meaning that you don’t have to worry about getting turned down for a loan any time soon.

Going Into Overdraft

Everyone has heard of what going into overdraft is, but what does it actually mean? Well, if you go into overdraft it means you’re spending money that isn’t actually in your account, just like credit cards it’s treated as a mini loan that you must pay back. However, the catch with these is that overdrafts normally have a large interest rate on them, meaning that when you go into overdraft your charged for the ability to do so which can lead you to being in even more overdraft debt. Companies such as bank of internet offer incredibly low overdraft interest rates, which means that if you do dip into it at any point you’re only going to be paying back what you took out, so that you can have time to sort your overdraft out as you won’t be paying back as much.

Only Buy A House You Can Afford

A lot of people jump straight into debt that they can’t climb out of because they get a mortgage that is way too big for them to pay off, just because they wanted a really big and nice house. It can be very tempting to take out the biggest mortgage that you can to buy the biggest house that you can, but you have to think about whether or not you can realistically afford to pay the mortgage back, so think long and hard about this before you commit!

As long as you make sure all of these 3 things are in check, your finances will run perfectly. You’ll not have a big mortgage to deal with, you’ll have a good credit score for when you want to take out a loan or maybe apply for a new bank account, and you’ll not be going into overdraft so you’ll have nothing to pay back to your bank! All of these methods involve saving money, but if you’re looking to save money in particular then read this!

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