What Not To Do Financially

WHEN IT WAS TOO LATE

  I joined the army owing nothing but student loans. a little over $12,000. Good old Salliemae. I was always the party type of guy. Didn't value my family nor my future. Imagine living in NYC always surrounded by people that always went to clubs or drank a lot. Sounds like a weak-minded individual HA.

 I had the perfect life at first, had the roof, the car, the wife and kid, even the dog. Enjoying ravishing summers, and spending money without thinking about next month's rent. That is what you call bad money management. If you guys are doing it please stop now, it is not a good feeling, once it comes back and bites you in the behind.

WHAT NOT TO DO

 Did you know that in a survey done last year 76% of Americans owed money to a credit card company, but only 50% of those Americans ever claimed they owed to a credit card company. Don't believe me well here is what The New York Times said about it Guess again.

  If you find yourself in a financial hiccup or maybe see yourself owing money and need to take out a loan, these are not the places to take a loan from.

PAYDAY LOANS

 A short term unsecured loan, or pay advance with high APR. If you borrow 100 dollars you'll have to pay back maybe 115 dollars. If you think that's fine imagine what the APR for that loan is. Yes 786%, now think twice on this. A young adult like me with impulse buying and not caring will take a loan like this, thinking to myself, I'll pay it next week. Then next week arrives and the bill has not been paid off. These loans can hurt if you let them sitting there for a long time. Here's a good article about payday loans if you're interested PAY DAY LOANS AND WHY ARE THEY BAD.

BAD CREDIT LOANS

 Some of us have seen ourselves taking out this loans, or even typing in Google search bar " bad credit loans ". Well once you hit that search bar you will have over 5,000 pages of different loans you can choose from. Your credit score is horrible and you need that loan. This is a better form of a loan than a payday loan but at the end of the day you are paying over 15% in interest rate, and a 21% APR. Now you have taken out a loan for $15,000 for that car, you decided to pay it off in 48 monthly installments, now that same loan of 15,000 just became $20,400. Yes a near $6,000 dollar difference.

This table shows the average monthly car payment on a 15,000 dollar car depending on your interest rate.

Interest Rate (% APR)	Monthly Payment	Total Interest Paid on loan in 48 months
4% (Good Credit)	$339	$1257
10%	$380	$3261
15%	$418	$5038
21% (Bad Credit)	$464	$7296

 
People let's just say budgeting is essential, and always try and save money to have a three to six month nest.