Avoid These 3 Costly Money Mistakes This Summer, Experts Warn

Summer is here, and while you may be excited to relax and enjoy the warm weather, experts are warning about three expensive money mistakes to avoid this season. With inflation on the rise and interest rates making borrowing more challenging, it’s crucial to be mindful of your finances.

The first mistake to watch out for is carrying a credit card balance from month to month. With average interest rates over 21%, and some even closer to 30%, the cost of carrying a balance can add up quickly. Making only minimum payments could result in paying more in interest than the actual balance. To avoid this, consider debt relief options or debt consolidation to lower your interest rate and make payments more manageable.

The second mistake is not shopping around before borrowing. Even a small difference in interest rates can have a significant impact over time. When borrowing, look beyond just the interest rate and consider factors like annual fees and credit limits. Maintaining a low credit utilization ratio is also important for your credit score.

Lastly, don’t get caught up in the moment and overspend on summer activities. It’s essential to keep long-term savings goals in mind and avoid unnecessary expenses. Setting up automatic transfers to your savings account can help you stay on track.

This summer, make it a priority to develop better financial habits and avoid these costly mistakes. By being mindful of your spending and borrowing, you can ensure a more secure financial future.