Common Financial Mistakes People Make And How To Avoid Them | Jenngem

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We live in a material world, and like it or not, money plays a big role in all of our lives, and when dealing with finances, it is easy to make mistakes that can be costly. While living in a digital age has made it much easier to make financial transactions and keep track with finances, the rule of not spending more than you earn still applies. It can, for example, be very easy to find yourself with multiple credit accounts. Before you realise, meeting those payments becomes difficult, and with that in mind, here are some common errors people make when dealing with their finances.

1.      Buying Things You Don’t Need - If we always remember there is a big difference between a want and a need, it helps us to realise that many of the items we purchase are simply not necessary. This is even more of an issue if you have a few credit cards in your wallet, and if you are late with a card payment, the interest increases, and for some people, buying things that they don’t really need is the cause of a serious debt situation.

2.      Relying On Plastic - It is oh so easy to pull out one of your cards and charge it, after all, you only have to sign the receipt. The fact that no cash actually changes hands can make us forget that we are spending money, and without a great deal of self-control, credit cards can land you a lot of trouble. If you want to clear a few credit card debts, the Debt Fix unsecured personal loans bad credit instant decision allows you to pay off your debts and have a single monthly payment to make.

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3.      Buying A New Car - Of course, we would all prefer to take delivery of a brand new vehicle and be the very first person to take it for a spin, yet when you buy a new car, you are losing between 15-20% of the value the moment you drive out of the showroom. Add to that the high monthly repayments and it doesn’t seem to make much sense to buy new, especially when you can drive a 2-year old car for a lot less.

4.      Taking Out the Wrong Kind of Mortgage - There are many types of mortgage, and if you choose one that is not suited to your lifestyle, this could cost you a lot of money in the long term. The best way to approach a home loan is to talk to an independent mortgage broker, and he can help to find you a home loan that works for you. Of course, if you wish to change your mortgage, this is possible, although it will involve costs, but even with the added expense, it might save you money in the long run.

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If you find yourself struggling to make several monthly repayments, you could talk to an online lender about a debt consolidation loan, which would allow you to clear all debts and have a single monthly repayment that is affordable.

This post is published in conjunction with MediaBuzzer

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