There’s an entire industry that THRIVES off keeping people POOR…
It’s literally designed to keep people in the cycle of poverty, forever.
Here are the top 10 Money-Destroying Scams that people fall prey to (and how to avoid them).
Buy-here-pay-here car lots 🔗
They have a “sell, repo, sell again” strategy that makes them 3x-5x the car’s value.
They know selling a car with an astronomical interest rate will cause many people to default, so they just repossess the vehicle and sell it again.
Overdraft fees 🔗
Banks charge over $15 BILLION a year in overdraft fees.
These are like an extra penalty for being poor, and perpetuates the cycle of poverty.
If you’re low on cash, find a bank that doesn’t have overdraft fees.
Payday loans 🔗
Over 12 million Americans use payday loans…
And the average interest rate for a payday loan is 391%!
Over 80% of loans are rolled over or renewed within 2 weeks.
Once someone is in the cycle of payday loans, it’s almost impossible to break out.
Rent-to-own stores 🔗
The FTC found that consumers paid an average of $1,500 for products with a retail price of $500!
They make money by making you sign confusing terms.
Instead, try finding good quality items from second-hand stores, garage sales, and online marketplaces.
High Interest Credit Cards 🔗
The average credit card interest rate today is 20.37%
A minimum 1% payment on $10k will take 5 years to pay off and cost $5,902 in interest.
If you can’t pay it off in full each month, don’t use credit cards.
Pawn shops 🔗
The average interest rate of pawn shop loans is a whopping 200%!
Their lowball offers and loan-shark pricing perpetuates the cycle of debt and poverty.
Instead of pawning items, try selling them online or at a yard sale.
Debt collectors 🔗
They buy debts for pennies on the $, then try to collect the full amount.
They harass, threaten fake legal action, impersonate law enforcement, and lie about their powers.
Never use your primary email, phone, or mailing address with creditors.
Tax refund loans 🔗
High fees and interest rates eat away at your refund.
The company deducts fees before giving the tax refund to you, making it difficult to know the true cost of the loan.
File your taxes early and opt for direct deposit to avoid waiting for a loan.
Subprime lenders 🔗
From consumer credit to auto loans to mortgages, subprime lenders charge exorbitant interest rates and fees to people with bad credit scores.
Building your credit score BEFORE borrowing will save you thousands!
Money transfer services 🔗
These companies charge high fees, scammy forex rates, and hidden fees.
Western Union paid a fine of $586 MILLION for their part in fraud and money laundering.
Use Bitcoin and decentralized crypto-assets instead of centralized money transfer scams.
Never-ending cycle 🔗
These scams exploit and keep people in the never-ending cycle of poverty.
It’s hard to escape once you get sucked into this ecosystem.
This is why it’s VITAL that we:
- Invest early and often
- Increase cash flow
- Minimize taxes
- Build wealth
