Three Phrases That Need Caution!
1. “I paid off my 30-year mortgage in 5-years”
The add I heard the other day had claimed this. Let me state that if you can pay your house off in five years, you are either buying a very low cost house or make enough money to not worry about services that would be offered by a company like this.
At the end of the day, you have to pay off the principal (purchase price) no matter what path you take. Just to give yourself a baseline, take what you owe and dived it by five. That is the minimum yearly dollar amount you would have to pay not including interest.
On $100K, you have to pay $1,666 per month before any interest. It is that plain and simple, there is no magic way to improve that number. That number in itself is also a lie because no one is going to lend you $100K for free. Know your facts, call these companies if you must, but check your facts and don’t believe any claims that just don’t make sense.
2. “make $50K per month from home using our system”
Wow, what a claim. I am sure someone somewhere does make this, but it is not going to be you. If these companies truly can teach you to make this money, there would be many more legitimate resources reporting on them and not just YouTube videos and mile long websites with 100’s of claims followed by a sign-up now button at the bottom.
Do you ever wonder why these sites always have the same format? Doesn’t make you wonder a bit? You may make something from the systems, but most of the time you will probably just be out your initial investment.
The last thing you should consider, if the system truly is that easy, do you think someone is going to share that information with you? Easy money of that amount is not shared by people, plain and simple.
3. “We pay off your trade now matter what you owe”
Sure, the balance is just wrapped up to your new loan. This may be fine with you, but you still need to do all your homework to make sure the overall deal you are getting is good.
If you go into the dealer with a car that is upside down, you are in the weak position. They know you can’t sell the car, they know you want the new car, and they know you are willing to add to the price of the new car to get it. Consider this like going to battle with a BB-gun Vs. a Machine gun. Chances are your not going to win. They will throw at you discounts, rebates, attractive monthly payments, discounts on the new car, and other tactics to make it sound like the benefits you are getting are paying for the lost value in your trade. Thing is, you can get all of those things with out your trade.
The big question you have to ask, is the new car worth the lose you are taking on the old car? Why not sell it private party? Why not drive it for an additional year while saving extra for the new car?
I recently was helping someone trade in a certain SUV. The dealer offered them $6K below the actual value of the car and $4K less than the street value (this was on a car worth $8K). My advice was give them the finger, drive the car for another year and sell it private party. The money they save in gas does not pay for the $4K hit they would have taken on the car. Be cautious with your trade ins.