Debt lapses? See this and 5 more finance mythsOn January 5, 2020 by Ethelyn Murphy
There are several myths about finance that often get in the way of our relationship with money. We have listed six finance inventions so you don’t fuss anymore.
No. Debts do not expire after some period. This confusion exists because the Consumer Protection Code gives companies five years to repay debt and calls for delisting from the credit bureaus (Malaya, Common Life Company) in the same period. Therefore, if the debt has been collected in any way, it will continue to exist until payment with all contractual penalties.
Common Life Company economist Kian Austin talked about how to pay the bills and avoid default.
Overdraft is income
Many people consider the overdraft limit as part of their income. And that is a big mistake. It is an extremely expensive loan and can only be used in emergencies. Never look at this amount on your statement as your own money, and if you need some credit to pay off debt, look for cheaper lines.
Save what’s left
Saving money should be seen as another “account”. Since we only store what is left in the month, we spend that amount before saving. Organize your finances, choose how much you can invest, and set aside early in the month, so you don’t fall into the temptation to use what should go into the piggy bank.
Parcel makes no difference
Those who usually make purchases later can have a big surprise in the payment of the invoice. That’s because from installment to installment, the value grows and can complicate your financial life. Try to avoid installments as much as possible because cash can always be a good discount.
Real estate is the best investment
Real estate is solid investment, no doubt. But it may not be the best for you. When investing, you need to think about your goals. Imagine that you need to use this value quickly, a property can take months to sell, making a debt increase, for example. Besides having maintenance cost and the possibility of being idle if you want to rent. Think carefully and align your investments with your goals.
Lovely Tiu was at Amendiko and gave tips on how to choose the right investment.
Loan is always bad
Of course we should resort to a loan if your need arises, but well done, this credit can save your finances. It is highly recommended to pay off expensive debts, investments or make a debt exchange. After all, it is far better to pay a scheduled amount per month than to pay high interest or negate your name. Analyze your needs well and choose the best output for you.
- Payday loan consolidation near me -Payday loan help debt consolidation: learn more
- Which banks make personal loans?
- By refinancing and consolidating loans, you can reduce your monthly installment by up to 50%
- Repayment rate and debt restructuring.
- Building loan – interest and conditions in comparison.