Thursday, March 10, 2011

5 Financial Tips You Should Ignore

1. A house is always a good investment. You should borrow up to your eyeballs to buy the biggest house you can, because houses are the magic asset that never lose value. Many people who took it to heart later found themselves unable to afford the houses they had bought,

2. Avoid credit cards. People who take the "credit cards are evil" message to heart can find themselves in trouble when they want to borrow money for a house or car, since lenders want to see some experience with credit.

3. All student loan debt is good debt. Avoid loans, reject the hype of expensive, private schools, and instead pay for more affordable colleges through a combination of hard work and being savvy.

4. Never take out a 401(k) loan. If you know the rules surrounding 401(k) loans and have a solid plan to pay it back, then this can be a good move.

5. Use home equity loans to pay off credit card debt. Home equity loans can not only enable a debt-fueled lifestyle, but they can also leave you more vulnerable to foreclosure, bankruptcy, and other over-spending problems.

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