Your Greatest Financial Threat

September 5, 2008

When it comes to your money, it seems as if there are constant attacks coming from everywhere. What is your greatest financial threat?

Can you even narrow it down to one. The bank, the credit card companies, the advertisers that bombard you with buy now, pay later, the finance companies, the identity theft and the list can go on and on. It can seem as if you cant let your guard down for a minute.

The bank seems like a safe place. We are mostly taught to trust the bank. However, they do not have your best interests in mind. Your banker might be looking out for you, but dont get confused. A bank is in the business of making money. Loans make them money and cost you money.

But credit card companies are even worse. They will charge higher interest and tack on fees for everything. Annual fees, late fees and overlimit fees can really add to your outstanding balance. If you even think about missing a payment on any credit card, they will all raise your rate.

Add to the credit cards all the advertising that tells you to buy now and pay later. They target your wants and make you forget your financial needs. They make you think that what you already have isnt good enough. You have to have new and better.

And if you just open your mail you will be bombarded with finance companies that charge sky-high rates. Some of them just send you a check. If you cash it, you are accepting their loan. You didnt even have to apply or talk with a single human being. Easy money comes at a price. When you have to pay up, you will pay up big time.

Identity theft works on the same anonymity. It is the safest crime for most thieves. They never even have to come into contact with you. All they have to do is raid your mailbox, call you on the phone or send you an email. They use your credit and your identity to spend thousands of dollars. Then they disappear like a awful nightmare. But your troubles wont disappear so quickly.

But there is one enemy that we have left out. That enemy is you. Are you using those credit cards? Do you cash the finance company checks? Do you spend more than you make?

If you answered yes, then you are your greatest financial threat. You arent saving for your future. You are taking the steps that you need to take to become financially stable. Hey, you might not even be able to pay all of your bills on time.

When it comes down to it, the choices you are making are at fault. You have the control over your finances. If you have credit card debt, it isnt the credit card at fault. It is you and your spending habits. Dont put the blame anywhere else. You are at fault.

But you can change. The banking industry and credit card companies will never change. But you can. Take the time to learn about proper money management. Plan to pay off your debt and start saving for retirement. Stop spending and start looking at your money in a different way. Always remember that you are in control of your finances. You can change and so can your finances.

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