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Index/PsychologyEconomics – Financial Mistakes to AvoidAmanda WilliamsBarrier Economics5 February 2016Essay 4Some financial mistakes I need to avoid would be going negative because going negative means a person owes money. That money owed adds up very quickly and has to be paid off in a certain amount of time. If some payments are overdue then there can be interest charged on you meaning you owe money each day not paid on time. Owing money makes a person’s credit lower meaning buying things can be harder to do because a company doesn’t want to worry about payments not being able to be paid on time. For example, buying a car or house takes a person with good credit. So if a person has bad credit ow owes a large sum of money to the bank then more than likely being able to purchase needs or wants are nearly impossible.Another thing I need to avoid is giving out my payment information such as a phone call asking for my card number for a late payment. It could be a fake phone call trying to get your credit card information so that credit card fraud is accessible. Once a person gives out their credit card information it can be passed around to buy things online making false charges that could make your bank account go negative. Yes, a person can cancel a credit card and receive another one but it take up to two weeks to receive and you can go to the bank and get a temporary credit card until yours comes in.
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