Companies And Products To Avoid Like The Plague
Good companies provide something of value. If you can not recognize
a good value, you are in no position to have money. Some companies bank
on the fact that some people are “suckers”. Long term views
are essential in managing money. These companies rely on thrill seeking
people that seek extremely short term rewards. People that use these companies
would trade a marshmallow today for a million dollars five years into
the future. If you have used these companies in the past, spend some time
focusing on long term outcomes and basic mathematics.
If you use these types of companies, I can guarantee you that you will
have #1- no money and #2- bad credit and #3- probably have been or will
go bankrupt #4—are more likely to commit crime and #5—are
more likely to cohabitate instead of marry. It’s like the ancient
saying goes, “If you are willing to do one stupid thing, why not
do a lot of stupid things.”
Avoid These Companies/Products. They are not a strategy to use when
desperate. They are not an option.
#1—Payday loans.
#2—Car Title Loans
#3—Furniture Rental (i.e. rent to own companies)
#4—Bad Car Loans For People With Bad Credit. If you have bad credit
and no money buy a junker with cash.
#5—Pawn Shops (don’t pawn your stuff, ever)
#6—Credit Cards With Over 16% Interest
#7—Finance Companies. Any company with finance in its title or is
a finance company. Finance companies, even if giving you a good deal,
lower your credit score because they are a finance company.
#8—Consolidation Loans can be extremely high priced. In addition,
most people use up their increased cash flow by getting more debt which
weakens their financial position. Think about it. You are in over your
head already and that’s why you are considering consolidation. Do
you really think you should tempt yourself to spend more or should you
work hard to just pay off what you are into already. Research has shown
that consolidation loans hurt 99% of people that get them. Don’t
think you will be different.
#9—Cash Value Life Insurance is disguised in lots of different ways.
Many brokers actually try to refer to it as something else or won’t
say the term cash value life insurance. Life insuance is not an investment.
It is an expense. Anybody who talks about returns and investment along
with life insurance. Well, just get rid of them quickly. Term life insurance
is the best option for life insurance.
#10—Annuities are a rip off. Annuity terms are figured out by an
actuary. Actuaries spend like their whole life trying to figure out how
long you will live and how much money you will likely consume in retirement.
Then they figure out what the expected rate of return should be in the
securities market. Then they charge you a premium for a guaranteed low
return. If I said to you, “I guarantee you I will pay you back a
small percentage of the money I earned off of your money.” You will
say no and so you should say no to an annuity. That is essentially what
an annuity is. You’re paying a huge sum for a tiny guarantee.
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