Shady business people are pretty good at convincing you that you are a genius and not a sucker. They prey on your thirst and blind ambition for financial success. As they say, “a sucker is born every minute.” You’d do well to not be one of them and easily give away your money through bogus money schemes.
We all make considerable efforts to stay away from many of the illegal or bogus deals. However, there are some not so subtle and perfectly legal money schemes that people still fall for.
Look out for these 3 money schemes:
1. Wealth-building seminars
If anyone could attain so much wealth by simply attending a wealth-building seminar, we would have way more rich people. These seminars promise to help you earn a lot of money from one or more industries. The only catch is that they cost a lot of money to attend.
Some of them are free to attend, but at the end of the day, you are cajoled into purchasing someone else’s products and resell them to make some money. Others still push you to enroll into an expensive course. More money out of your pocket! These sorts of money schemes have been around for ages, but people still fall for them.
The only problem is that there are plenty of other legitimate seminars and individuals who offer sound financial advice. So how do you separate the legit guys from the fraudulent ones? The idea is to generally avoid money schemes that promise instant wealth or within a few weeks. Steer clear of all such money schemes that offer “risk-free” or “get-rich-quick” investments.
Alternatively, you can just look up the company online and read neutral reviews of their projects. Their website will, of course, have all the nice reviews and hardly any negative comments.
2. Payday loans
On the surface, payday loans seem like an excellent idea to keep you going before your salary lands into your bank account. Rent is due on Monday, but your salary will won’t come in until Friday. So you take a quick and small loan that you can pay on Friday.
In reality, this is hardly the way it usually works. Many people often default on their payday loans. They end up reaching out for another loan to settle the old one. Payday loans are among the most common and legit money schemes out there. They offer exorbitant interest rates, way higher than the ones you’d get for regular loans.
These kinds of loans continue to send many consumers into a downward debt spiral of financial ruin that may even lead to bankruptcy. However, people still fall for them and not because they are suckers, but because they hardly consider other available options.
Check out other available options like a salary advance from your employer. You can also call other credit companies and find out if they have other repayment programs. You’d do well also to consider weeding out the problem by reorganizing your finances. Try every other thing before you take out a payday loan.
3. Debt consolidation
Debt consolidation is completely legit and many people turn to it because they want to get a firm grip on their debts. They simply want to pay it all back, and since they don’t know where to begin, they turn to the “professional” for that much-needed help.
However, more often than not, debt consolidation is a bad idea. This is how it works; rather than making multiple payments to your various lenders, you make only one payment to a debt consolidating company. While it sounds reasonable enough, there are usually a lot of caveats that end up compounding the debt situation.
Debt consolidation inevitably stretches out the term of your debt. With interest piling up, you always end up paying more than you would have paid had you stuck to paying individual lenders on your own. While there are legitimate debt consolidation companies, the whole process is vulnerable to scammers. You’d be better off paying your lenders on your own.
There are, of course, other bogus money schemes out there that cozen people out of their hard earned money. They include bogus financial advisors and schemes to extort you whenever you need a credit report.
Have you run into any of them in recent times? Share with us in the comments.