[Music] so more than ever I feel like I've seen people really be tempted by 0% interest loans and honestly I get why this is an appealing option but there are multiple Financial offers out there in the world that are too good to be true so today we're going to talk about five of the most common that I see and steer you in a better Direction than these cuz they're not great but first make sure to subscribe to the channel share this episode with a friend all right number one the First Financial offer that is too good to be true is 0% interest loans so 0% yes I get is very intriguing but that does not mean that it is free you are still paying full price for something over the long term and in fact it ends up sometimes being a worse offer because of the stipulations and how strict the repayment options are so a lot of people get into it because they're like oh well if it ever had interest I wouldn't be able to afford it in the first place and then if they find them VES having an emergency then they don't have the margin to pay the payment and if that's the case you guys sometimes it's crazy what happens what they do with it they will upcharge you interest all the way back from when the loan began uh they will take your loan sometimes up the payment in general what you have to pay for some even say okay well now you owe all of this within 30 days like it is terrible it puts you in a really bad system that again on the front end seems great but for a lot of people it ends up they get screwed in the process and and it's not good so I'm not a fan of loans in general but especially with the 0% it's again very enticing but when you look into the fine print not good number two is buy now pay later so this is just another way to take on debts and merchandisers know this and they know how much money you end up spending more when you use buy now pay later because you go in to buy you know a pair of jeans you know 3550 $75 you're like that's great and then you divide it up into four installments you're like oh I'm only paying this you know 20 30 bucks that's not bad well if that's all I'm paying right now today then I can I was expecting to pay 75 so I'll go and spend more you know so then you end up going and spending more and retailers are making so much more money off of customers because of buy now pay later and it is wild how much again that they are making so it is just another form of debt it causes you to spend more and spreading your payments over the Long Haul versus spending in the present and always you guys when you spend in the moment money you have in real time not only does it give you just more peace because you're not using debt but you also end up spending less number three are credit card rewards so just like the buy out pay later you end up spending more when you spend with plastic and again the subconscious idea if you are chasing any level of rewards and so we find that on average you spend 12 to 18% more when using a credit card versus actually your own money and so this is a big game and they are winning the credit card industry I mean it's a billion dollar industry and they know the cycle ological games to play with us as consumers for them to make more money this is how they make money you guys it's it's people fall for this all the time but I'm telling you there is more peace that occurs in your life when you spend money that you have and you don't play the credit card game all right before we get to the rest of my too good to be true list I do want to tell you about one of our sponsors Christian healthc Care Ministries when you go against what Society thinks is quote normal it might feel weird at first but that is totally okay and we want you to be weird if that means you're doing things in intentionally including how you spend your Healthcare dollars and one way to be intentional is with Christian Healthcare Ministries chm is not health insurance they're a health cost sharing ministry that's helped hundreds of thousands of families like yours take care of health care costs without sacrificing their freedom Program start as low as $98 a month so find out more and join at chministries.org budget that's chministries.org budget all right number four is weird mortgage loans so whenever you're getting a mortgage we always suggest a fixed rate mortgage and again ideally 15-year that's what we're shooting for people uh but again the fixed rate is key because you're just locking in your rate you know what's going on but there's all these other types of mortgage loans that you can do so this is like FHA Loans balloon mortgages variable rates adjustable rates I mean like all the way around this idea just to get you in a home and that's what people end up doing and so a lot of these again long-term are not good they end up coming coming back and and not being great for you financially uh but also sometimes they allow you to get in a home earlier than what you should so the idea of your home it's the largest purchase that majority of us make In Our Lifetime and people will rush into this when they're not financially ready and some of these mortgages kind of prop them up to say oh yeah you'd be okay in it then you get in the home and realize oh my gosh this is so expensive and my loan you know depending on what type of mortgage you get it's changing I don't know what to expect and it ends up being more of a curse than a blessing so the best thing that you can do when it comes to a mortgage is as much predictability as possible is really key so locking in a fixed straight mortgage is so so important and if you're buying even now as we're talking during this timeline like mortgage rates are higher than they were two years ago but they may come back down and if they do you can refinance if it makes sense for you but locking in your mortgage with a fixed rate is the way to go number five inore credit cards so earlier we were talking about just credit card rewards but this is for specific retail and again this idea of like oh you can save 20% because you can't afford the $50 retail purchase that that's not a great place to be and if it is like give us a call on the ramsy show we'll talk about really your money situation because if that's what's getting you in not only are you going to spend more money but again if you're falling for this saying oh gosh I have to have that 20% off in order to purchase this you probably shouldn't be buying it in the first place all right now what happens if you in the middle of one of these two good to be true offers well the idea here is taking control of your money and so if you're able to get out of any of these do it and just learn your lesson sometimes we call it stupid tax where you end up paying more in a situation then you probably should because you rushed into it or you didn't do your research and that's okay nobody's perfect it happens to all of us but the idea is getting back to having control over your income and the best way to do that is with a budget and so I love the every doll app if you don't have a great budgeting app you need to download this this is so so key because it's going to help you take control of your overall budget and again in the end this is what the budget's for it really allows you to take ownership over your money and allows you to spend money where you want to spend save what you want to spend and give what you want to give so it's really a plan for your money so I'll put a link down below for every dollar make sure to check that out and to avoid more common money traps make sure to not miss my episode on how Airlines and other retailers are robbing you blind you can click here to check that or if you're listening on podcast you can click the link below all right you guys remember to take control of your money and create a life you love
