Cash Advance Loans

In many respects, life is all about choices -- but in the words of David Russell, "The hardest thing to learn in life is which bridge to cross and which to burn." When it comes to managing money, knowing what not to do can be the most challenging part of choosing the right financial bridge.

Fortunately, we can learn from others' mistakes. Here are 10 of the worst financial choices people make, along with motivation to avoid these missteps.

1. Casually using a credit card: It can be all too easy to swipe that plastic -- and all too hard to pay it off. Consider this: People who pay for their food with a credit card spend 30 percent more on average than people who pay with cash, according to a Visa study of 100,000 restaurant transactions. If you want to really spend smartly, pull out the cash the next time you shop or dine out.
   
2. Buying too much house: The bigger the house, the bigger the headaches. A mini-mansion comes with mansion-sized tax payments, insurance, maintenance, upkeep, repairs and yard work, and owners of more luxurious homes are more likely to feel pressure to upgrade everything from appliances to furnishings to the cars that go in the garage. Realtors sometimes encourage buyers to purchase as much house as they can "stretch" to, but take a realistic look at your needs and your budget to choose the house that is the right size for both. Ideally, all home costs -- including insurance, taxes and maintenance - should amount to less than 35 percent of your budget.
   
3. Trading in a car too early. New-car ads can be tempting, but before making the leap to a new car, evaluate the costs. If the old car is not yet paid off, odds are you will be adding the remaining loan payments to the cost of the new car. Do that a few times and you will be piggybacking loans until the payment is monster-truck sized. Instead, strive to keep vehicles for five to 10 years -- or at a minimum, until the previous loan is paid off.
   
4. Paying too much for appliances and furnishings. Renting to own could be defined as "paying way too much for something you will wear out." With interest charges that can sometimes be extremely high, what looks like a small monthly payment might actually be a very expensive way to add a sofa or TV to your home. Far better is to purchase quality used goods that can hold you for a few years while you save up for a pricier item. Along the way, you might even find that you would rather use that cash for retirement savings or to pay off your mortgage.
   
5. Borrowing from payday lenders. Payday lenders typically loan a few hundred dollars at a time, with an average interest fee of about $15 on a $100 advance. Most loans must be repaid within two weeks. In many cases, payday lenders can roll over loans again and again, resulting in effective interest rates that are exorbitant Far better: Save up an emergency fund -- even $100 to $500 can make a difference. If you must use the savings, , then repay the fund as soon as possible.
   
6. Not saving for retirement or raiding retirement funds. Social Security can be expected to cover only a portion of most people's retirement expenses. Therefore, saving for retirement should be thought of as a requirement, like paying taxes. Do not cash in a retirement fund except in a crisis.
   
7. Not paying taxes. If you are behind on taxes, you can run, but you cannot hide. The IRS will track you down eventually if you have not paid taxes, and the penalties can be harsh, from penalties and interest to garnished wages and even jail time. Seek help and immediately rectify the situation.
   
8. Co-signing a loan. Loans require a co-signer when the borrower has no credit or has bad credit. Parents who have thought it through -- and laid out ground rules -- might co-sign a child's first lease. But take a big pause before co-signing on a loan for a relative and friend with shaky credit history. You might be stuck with the bill -- and your relative's trouble can turn into your own problems.
   
9. Investing on a tip. Never invest your life savings in a stock your neighbor, colleague or buddy recommends. People who think these investments might be their ticket to riches need to understand that they also could be a one-way ticket to financial ruin. Diversification is a key component of any investing strategy. Never put too much of your money in any one investment, regardless of how much hype it is generating.
   
10. Do not skip the small stuff. Pay everything on time, including bills whose creditors might not start calling you right away -- like child support, parking tickets and library fines. All of these bills can and do come back to haunt those who do not take them seriously.

These 10 mistakes can cost your monetary well-being -- and knowing enough to avoid them can set you on the right path for financial life.

Source : http://www.newschannel5.com/Global/Story.asp?S=8895812