bad advice

While a good nugget can help you keep more money in your pocket, bad advice can leave you digging out of a financial hole. Here are some signs that a piece of financial advice should be considered with caution, if not ignored.

The advice is confusing.  It is important to have a clear understanding of what you’re doing before making a financial move.  If a plan doesn’t make total sense, look for a different solution.  Be aware that many debt settlement companies stop paying your bills and your credit will take a hit by using them.  It is best to negotiate directly with the creditor if possible.

The adviser has a vested interest.  Always question the motive of the person giving the advice. If it’s a person peddling a book or service that can “help” you, be cautious because the person could just be trying to make a sale. Even close friends or family members could have a vested interest if they get a discount or kickback for referrals.