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5 mistakes to avoid when trying to pay off debt
finance

5 mistakes to avoid when trying to pay off debt

Being in debt can be overwhelming and stressful if one does not plan to get out of it. Proper financial planning is imperative to pay the debt right away and should be at the top of one’s priority list. This means being structured and diligent with one’s spending habits, i.e., cutting some expenses to help with debt payments. Nonetheless, here are some more mistakes to avoid while paying off debt. Neglecting interest rates It is recommended that the debt on the bill be paid off with the highest interest rate while the others can wait. One may think paying small amounts for every bill is helpful, but that will not be the case, as the interest will be added back every month. So, paying as much as possible on the highest bill is essential while matching a minimum payment amount for others. Closing credit card accounts While closing credit card accounts after bill payment may seem tempting, this may affect credit score data. So avoid rushing to close the account once it is paid off. Pay the monthly balances and avoid interest charges to maintain a good credit score rating. Not changing spending habits It is important to incorporate some healthy spending habits.
5 mistakes to avoid when paying off credit card debt
finance

5 mistakes to avoid when paying off credit card debt

Paying off credit card debt can be a tedious and lengthy process. However, with proper planning, you can reduce your debt to a substantially low amount. Failure to pay credit card bills on time can jeopardize your financial well-being, which must be addressed and corrected as soon as possible. As debt accumulates, so does the stress. Here are some of the mistakes that are commonly made while paying off debt that can easily be avoided. Continuing to use the credit card It is crucial to refrain from using a credit card that has a significant amount of debt until the entire debt has been paid off. Though you may be able to make your monthly payments and reduce the amount of debt over time, the interest charges will continue to compound and accumulate each month, resulting in a much larger debt than you initially incurred. To put an end to this cycle, it is necessary to stop using the credit card completely, at least until all the outstanding dues have been cleared. Also, do not fall prey to “buy now, pay later” shopping schemes. Lack of planning Having a well-planned strategy is the only way to get out of debt easily.
5 mistakes to avoid when selling or investing in cryptocurrency
finance

5 mistakes to avoid when selling or investing in cryptocurrency

Being new to crypto trading does not necessarily mean one must make all the mistakes to experience and learn. Why not start smart as a beginner? For this, it is essential to be thorough with the common mistakes to avoid when selling or investing in cryptocurrency. Knowing what they are can help potential crypto traders begin their crypto journey on an informed and solid footing without incurring unnecessary losses. 1. Buying because the price is low Low prices may not always hint at a bargain. Sometimes, the prices are low for a reason. So, being wary of the coins with falling user rates is crucial. Many developers formulate a project and leave it after a few years. Consequently, the coin has not been updated, a common reason for its low price. So, one of the mistakes to avoid when selling or investing in cryptocurrency is buying without research, merely because the price is low. 2. Failing to pick the right crypto exchange platform Before one starts trading, one must research and choose a reliable cryptocurrency exchange. Sadly, many beginners rush into this step, which later proves to be a costly mistake. So, when selecting an exchange, look for the following features:
4 common mistakes to avoid with a 401(k) plan
finance

4 common mistakes to avoid with a 401(k) plan

A 401(k) plan is a tax-advantaged retirement savings plan provided by employers. It involves setting aside a portion of the employee’s monthly salary, which can be withdrawn during retirement. Introduced in the 1980s, 401(k) has been instrumental in helping people save money for their future. However, certain mistakes can prevent one from getting the most out of their 401(k) plan. Lapses here could also result in penalties. 1. Not contributing enough Some of the biggest mistakes people make with a 401(k) are not contributing enough or consistently and not increasing their contributions over time (to match their salary). As a result, they end up losing out on the compounding interests, settling for very little money. To steer clear of this mistake, one can set up the account to automatically draw contributions from the salary account. Today, one can also opt for automatic annual increases on a date of their choice or on the effective date of their salary raise to allocate more money for their retirement. 2. Missing out on employer match Many employers match the employee’s contribution. To build a bigger retirement fund, one should avoid missing out on these contributions. One can learn more about the employer’s 401(k) policy.

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