Services that Cost More than their Worth and Dig Into Your Pocket or Purse

A number of these services cost more than their worth and dig into your pocket or purse primarily. While a number of these services are targeted at people with limited funds and are  but  short of cash and credit, it’s tempting to use some of these services and to buy things at higher cost than if you had the money to spend when you shop.

Money

  • Credit card companies that charge excessive late payment fees or over-the-credit limit penalties. Sites like Cardratings.com and Credit.com enable comparing credit cards.
  • Pawnshop loans have the advantage of defaulting in repaying the loans does not hurt your credit store. The pawnshop keeps what you’ve pawned whether it’s jewelry or a musical instrument, but this comes at a price of monthly interest ranging between 5% to 25%. Pawnshops are regulated by federal, state, and local laws and ordinances.
  • Payday loans that are unsecured advances on a paycheck. A $15 charge amounts to an annual interest rate of 390%.
  • Rent-to-own stores used for items like furniture, computers, electronics, and appliances  While the monthly cost is less than an conventional loan, the term is longer and you wind up paying more.
  • Subprime mortgage loans cost more than conventional ones to compensate for the additional risk involved in lending to someone who has credit problems, like failing to pay debts completely, a history of late or missed payments , excessive debt, or little in the way of a track record of using credit.
  • Tax refund loans are secured by anticipated tax refunds. These convenient loans are expensive.

Housing

  • Seeking a loan for buying or refinancing a home with a subprime mortgage lenders. You’ll pay more.
  • Renting to own a home. Most people never actually buy the house and have paid more than people who enter a straight rental, particularly if they agree to make repairs.

Autos

  • “Buy-here/pay-here” used car lots. Whether buying a new or used vehicle, stay in control of the negotiations by (1) negotiating a purchase price instead of a monthly payment. If the dealer knows what you’re capacity to pay monthly is, they will find ways of adding to your cost. (2) You’ll likely pay less for a loan if you obtain it yourself rather than going through the dealer. (3)Before accepting a cash rebate, compare it with the interest-rate if you are obtaining a loan.

Cell Phones

  • Cell phone providers that force less creditworthy customers into expensive prepaid plans.  Avoid unnecessary charges by taking into account you are using minutes in checking for voice mail, roaming when you travel in other countries – you can upgrade your services for the length of your trip, being careful about clicking on spam text messages that result in your being a cramming victim and then getting barraged with ads. The The Federal Communications Commission offers tips to avoid cramming. Keep in mind that you pay for texting messages and can run up large bills.

For an initial free consultation on this and other topics or to explore this or a sustainable livelihood that bests suits your personality and your community, contact us.

Comments on the substance of the blogs are welcome. If you have other questions, please contact me directly for a consulting appointment.

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

Print Friendly

Comments

  1. I think this is among the most significant info for me. And i’m glad reading your article. But should remark on few general things, The site style is perfect, the articles is really great : D. Good job, cheers

  2. This is really interesting, You are a very skilled blogger.
    I’ve joined your feed and look forward to seeking more of your fantastic post. Also, I’ve shared
    your site in my social networks!

  3. business colleges online says:

    With havin so much content and articles do you ever run into any issues of plagorism or
    copyright violation? My blog has a lot of exclusive content I’ve either authored myself or outsourced but it appears a lot of it is popping it up all over the web without my agreement. Do you know any techniques to help stop content from being stolen? I’d truly appreciate it.

  4. My partner and I absolutely love your blog and find the majority of your post’s to be what precisely I’m looking for.
    can you offer guest writers to write content in your case?
    I wouldn’t mind composing a post or elaborating on most of the subjects you write concerning here. Again, awesome site!

    • Josh,

      Thank you for you comments. I am glad we share common interests. We welcome your writing some blogs for the site. Thank you again.

Leave a Reply

Bookshelf 2.0 developed by revood.com

%d bloggers like this: