Family and friends play a very important role in our lives. It is a good habit to take suggestions from them in important decisions of life. But every coin has two sides.
Some suggestions from your near and dear ones can be useful for you. But some suggestions can have a negative impact on your life. For example, especially while making financial decisions, you should always use your wisdom. After all, every person's personal finances run according to his circumstances.
Even when you don’t want to, people around you give such financial suggestions that can take your money matters in the wrong direction. Let us know the advice you should never follow.
Maxing out credit card helps build up credit score
Are you serious? By maxing out your credit card limit, you can get stuck in a debt trap. It can be difficult to pay credit card instalments due to the high interest rate of the maximum use limit.
The right approach to credit cards is that you should never charge it up to its maximum limit. Never use more than 30% of the available credit. This is an ideal limit that is preferred by financial advisors as well as credit reference agencies.
Apart from this, whatever limit you use should be fully repaid. The higher the limit of credit utilization, the weaker your authenticity as a financially responsible person. Never consider the advice of maxing out your credit card limits. In place of agreeing to such advice, it is better you consult a financial advisor.
Never take a loan in a very bad credit CCJ situation
It is true that taking unnecessary or excessive loans worsens your financial condition. But it is important to take a loan at a time of need. It is important to understand that every loan product is a kind of financial solution in itself.
Through this, you not only get money but also get an opportunity to improve your financial situation. For example, Very Bad Credit CCJ Loans Direct Lenders are available at affordable interest rates.
The reason behind this is that you can manage other obligations with the help of this loan. Besides, paying the installment on time improves your credit rating, which helps in getting rid of a very poor credit situation.
Don’t check your credit report, and it leaves a credit footprint
It is another one of the worst suggestions that you have that family and friends give you. You should never act on this suggestion. Checking your credit report does not leave a credit footprint.
A credit footprint is only created when a finance company does a credit check to check your eligibility for a financial product. That credit check, too, can happen only after your permission. When someone checks his own credit report, it is a soft check, which does not leave any footprint on financial records.
Also, it does not bring down your credit rating. In fact, it is important to check your financial records every month. Sometimes, credit reference agencies mistakenly mention wrong financial details in your report. To correct any such mistake on time, you must check your credit report.
Don’t save your income, we are there for you
You are lucky if there are people around you who tell you this. But whenever it comes to money, the best thing is to have your own earned money. Your savings are useful in both good and bad times.
Taking money from family members is not wrong, but life is complicated, and circumstances can change at times. It is very good to have connection and love in a relationship, but nothing can replace financial self-dependence.
Take an example - you take unsecured loans of a small amount. After some time, you lose your job, and you have to depend on your family to pay even the small instalments. Gradually, you will start feeling bad about getting help from your family.
No matter how much money your family has, it is very important for you to have your own earnings and savings. Family members always support you, but due to circumstances, they may need the money they have saved for you. Besides, after a certain age, if you don't have your own earned money, what is the use of getting an education and a job?
Conclusion
From the above points, you must realize if you accept these financial suggestions, they can cause a great loss. Money management is a skill in itself. In fact, money management is something that parents start teaching their children from childhood itself.
A few suggestions in conclusion are -
After growing up, if you follow the suggestions of others, you will never be able to create a balance in your personal finances.Just like in a family, everyone's point of view is different. Similarly, every person’s financial conditions are different.Your finances work as per your obligations, career circumstances and decisions. Before accepting any advice, do research on it. Also, think about what effect any advice can have on your financial condition.
Description – Read the worst suggestions that friends and family offer to you. Know why you should not agree with them.
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