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Money in the News: What to Avoid

Totally Money lists their big financial mistakes to avoid.

But before you decide to take the serious decision to secure your unsecured debts against your home you really need to think about the potential consequences of this. If you can’t keep up with your repayments you will lose your home, and you can also end up paying more for the debt overall as you will probably be spreading out the repayments over a longer term. Secured loans should really be a last resort for dealing with your debt, so think very, very carefully before you do so, and avoid it if it’s at all possible.

Prairie Eco-thrifter posts some advice on why you should avoid penny auction sites.

The auction site owns the merchandise. The auction site sells the bids. The auction site sets the increment that the auction price will increment with each bid. The auction site sets the shipping and handling charges. The auction site sets the transaction fees. The auction site sets the registration fees. The auction site is responsible for shipping. There is usually no appeal process. There is no user feedback process on most sites.

Free From Broke posts about the cost of clutter on your finances.

The United States is the land of plenty, and unfortunately, many of us can’t get enough. We are routinely buying more than we need, until we are buried in useless “stuff.” Take a look at the television show Storage Wars. People go in and bid on abandoned storage lockers. The owners of these lockers had too much stuff, put it in storage, and along the way did not keep up with their payments. Often the locker contains valuables, but my guess is that most people forgot about these valuables (probably because they have more than enough “stuff” at home), or they ran into hard times and could no longer pay the storage fee.

MSN Money posts about 5 costly retirement mistakes.

Most people assume they will retire at a certain age, and many look to salvage inadequate savings by working later into life.

But according to Limra, a global association of insurance and financial services companies, two in five people retire earlier than planned due to a number of factors, including layoffs or illness. For those assuming they will work part time in retirement, many can’t due to circumstances beyond their control.

CNN Money posts an article about a spouse’s compulsive spending habit.

My husband spends money on toys he never uses: $350 on a ski pass or top-of-the-line golf clubs he’s played with twice. If he used the things he buys, I’d be okay with it, but he doesn’t. How can I get him to stop?

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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