There are so many tactics that keep people away from the truth, especially when we are talking about money. It is important to keep in mind that companies that deal with money often have shady rules and details that are not given to the public that way they end up spending more money in the whole process, especially when we are talking about any loans. It does not matter whether you have a student loan, a mortgage or even a loan to pay off your credit card, it is always good for you to keep track of everything you spend and try to understand the crazy numbers charged by companies, after all you should know exactly what you are spending, it is your right and there are so many tactics that keep you in debt out there that you should be aware.
Student loan providers are making payments longer and harder
Have you ever imagined that the extra money you put towards your student loan might not be getting to your student loan? This might sound crazy and absurd, however most schools put the money in a future expenses fund, which means the money will be there doing nothing and not getting interest! Once again tactics that keep you in debt! This is wrong and if you are a student you should find if this is also happening to you! The sooner you find out the better. Make sure you look at the payment terms and find out if putting extra money is possible. You can write to your counselor and make sure he understands how you want the money to be put towards the loan. If you are also dealing with a forgiveness plan you should also understand the terms.
Upselling the upgrades
There are many companies that try to sell extra services and make your debt go even higher. It is important to always say no after all they are quite pushy and will insist and try to get as much information regarding yourself as possible. Keep it as a form no and make sure you make the right decision. You have the right to downgrade certain services and then again if they ask why just state it was a personal decision, after all you do not have the obligation to stay with a service for a long time, it is your decision after all.
Fees…extra fees, more fees…fees everywhere!
Why are there so many fees? It is important to understand what some fees are as well as understand why they are being charged. Make sure you look at your bank statements and understand what the fees are. In case you do not know contact the bank and ask! These are tactics that keep you in debt. It is important to check your statements and in case you do not understand them look for an employee that can help you. Lately the statements are quite confusing and do not help much therefore it is always important for you to read it carefully and look for assistance in case you do not know what is going on with your account!
Credit Card Rewards are just a trick!
Credit cards are not bad, however they are often something that make people get into even more debt. Some rewards promise to give free flights, free home items and even some free advantages for you. Although this might seem nice and fun you are the one paying for everything, so do not be mistaken, they are not giving any rewards at all. Of course you can have a credit card, because they are not all bad, however it is important that you pay the bill in full every month so you never have to deal with any interest. Interest is what makes these cards bad, because the longer you take to pay the more interest you will have to give the bank in the end. Make sure you always remember when the due date is, so you never miss a single payment, after all every single penny counts!
The bottom line when it comes to tactics that keep you in debt.
In order to avoid the so called and truly used tactics that keep you in debt it is important that you keep an eye out for these bad situations that end up making you pay even more money towards bills or even debts. You should always look for ways to control what you spend as well as control what you are paying as interest. The more you understand about the conditions and regulations of companies and the services that they offer the better. Several different companies will do pretty much anything to get a little more money from you, so many sure you are not the next victim. You can pay what it fair and still save money by not paying any interest.