National Debt Relief Shares Common Financial Mistakes By 40-Somethings
Phoenix, AZ (PRWEB) July 22, 2015 -- National Debt Relief recently shared in an article published June 29, 2015 some of the most common financial mistakes of consumers who are aged 40 and above. The article titled “How To Avoid The Financial Mistakes Commonly Made By 40-Somethings” explains pitfalls of this age group in terms of money management.
The article starts off by sharing that some of the 40-something consumers fail to take liquidity into their household budget. This usually leads to consumers having to borrow from high-interest lenders just to get by for the month. This would then lead to higher expenses for the next month to cover the basic needs plus the high-interest payment.
Complacency is one of the major financial challenges of 40-somethings especially when it comes to their consumer debt. Becoming complacent at this age is a big problem because dragging debt accounts well into retirement years will not do their finances any good. Instead buying medicines that they would need, they might have to use the money for debt payments.
The article also points out that there are a lot of consumers that are in that age group who bump up and make their mortgage payments a top priority. There is nothing wrong in aggressively paying down mortgage loans but if it leads to missing payments on credit card bills or even auto loan payments then it might be doing more harm than good.This is because the mortgage loan will most likely have the smallest interest rate among all debt accounts.
The article warns as well about consumers taking money out of their retirement funds too early. This is because as they have to pay a fee for early withdrawal when it comes to their 401(k), they also lose on the compound interest of the amount they take out.
To read the full article, click this link: https://www.nationaldebtrelief.com/hoiw-to-avoid-the-financial-mistakes-commonly-made-by-40-somethings/
Paul Ritz, National Debt Relief, http://www.nationaldebtrelief.com/, +1 1-888-703-4948, [email protected]
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