Educating Ourselves on Personal Financial Management | Ramblings of an e-trader

Tuesday, 20 February 2007

Educating Ourselves on Personal Financial Management

Many people I know, whether family members, friends, colleagues or associates, are always in one kind of debt one time or another. To say that they have bad financial management is an understatement since they do command a high pay check every month.

A lot are saddled with at least a housing loan and car loan and most get into more debt during the holiday season when they losetheir budget buying gifts. Credit cards tend to make people forget their budgets.

Some people will think that if they can refinance their house to pay off their credit card, in exchange for a lower interest rate in their refinance mortgage, they will get to save quite a bit on credit card interest.

Some others prefer to dump all debts into one account against therir monthly income and whatever savings they have.

But do people know that by making the wrong choices, they are in fact, putting their home at risk for foreclosure should they not be able to meet the repayment schedule?

I believe it is our own duty and responsibilty to educate ourself on personal financial management. It is not difficult when there is a free online consumer portal Bills.com

By enriching our financial knowledge we will know what loopholes there are that we may expoilt or what pitfalls we can avoid. Knowledge is power.

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