Financial Tricks That We Should Avoid
Posted on November 11, 2015
Lately, we have heard more and more news about identity theft and this issue have been covered on the news for years. Identity thieves are just crooks who want to obtain critical information about personal details. In the United States, it can be much easier for crooks to know more about us. Our name and Social Security number are all that identity thieves need to steal our personal data. It is important to consider that we shouldn’t divulge the information to people unnecessarily. In fact, the sole reason why we should give the information to people is because the government and other very trustworthy organizations want more information about us. As an example, employers will need our personal data to report earnings, so IRS can collect taxes on our earnings properly.
As an example, we should be careful if the insurance company is seeking to run credit checks on us. For this reason, they may need our Social Security details. According to Federal laws, credit grantors are prohibited from denying us credit, without telling us the real reason, especially if we ask. It means that we should ask why an organization or company wants our Social Security number. We should take plenty of precautions so we can protect our numbers whenever we can. Other thing that we should avoid is that contractors who want to be paid up front. Again, they could make up several rules that allow them to gain more and more profits. Remodelers, such as drive-way repair professionals, roofers, housepainters and carpenters usually ask us to pay a third of the project value when we sign a contract.
It should be noted that these contractors can be sidetracked easily when more profitable projects come along. In this case, we should modify the term, so that we will pay a third of the project value when all materials have been delivered and the project has begun. We should politely explain to contractors why we want this. It means that contractors will be more committed to our project and they won’t be sidetracked as easily when completing the project. Another trick that we should avoid is that an organization or financial firm may ask us to sign on all the dotted lines. We shouldn’t sign contracts without reading them carefully. So, it is important for us to take the magnifying glass with us and read all the fine print.
If we never sign contracts without examining and understanding all the little details; then it is a good thing. However, this should include things we affix our signatures to. Things that constitute a contract may include credit card slips, rental agreements, bill of sale and lease. We should sign the contract only if we understand and agree to each term. If we consider that something is unfair, then we should start calling attention to it. If the organization says that it is a standard version of the contract and we can’t change it; then we should threaten not to sign the contract and seek others who can provide more reasonable terms.