Avoid These Financial Mistakes
As an injury lawyer, I am allowed rare insights into people’s lives. I have seen personal and financial aspects of clients’ situations—as well as of defendants I have sued—for over 22 years now.
Many folks make the same decisions that they often regret. Here are some common financial mistakes I notice:
Co-signing for others. If a bank won’t take a chance on them, maybe you should consider holding off too. Of course, there is the possible exception of helping a child with a first car or one for college. See Proverbs 22:26 for a warning regarding co-signing. >>Surprising Truth: co-signers are NOT second in line with collections. They can—and will— come straight after you first.
Financing cars repeatedly. I see the deleterious effects of this frequently. It often looks something like this: Finance a new car for $29,995. Payments made for 18 months. At that point, one may still owe $25,000, but the car may now only be worth $16,900 when totaled. If this $8,100 is rolled into yet another car, the problem only grows. >>Surprising Truth: you still owe the note even if the car is totaled, and not paid off by a settlement. Gap insurance can help. >>Surprising Truth: some new cars can lose over 30% value in just 18 months.
Time shares. While some enjoy their time shares, the vast majority eventually seem to regret such a purchase. >>Surprising Truth: timeshares can be bought for just cents on the dollar in the secondary market. Many owners surrender them back to the sellers due to ever rising annual maintenance fees.
Minimal Limits of Car Insurance. Automobile crashes destroy lives and bankrupt families. Memphis drivers are notoriously uninsured. Those that have insurance, are usually underinsured. Tennessee still only requires only $25,000. This limit was set in 1977, the year Elvis died. I think you should have a $100,000 minimum, especially to protect your family against injuries from the uninsured.
Mr. Peel seeks justice for those injured in motorcycle, truck and car accidents, disability and medical malpractice. He often addresses churches, clubs and groups without charge. Mr. Peel may be reached through PeelLawFirm.com wherein other articles may be accessed.