Most people can’t wait to get their first car, so much so that they don’t stop to check whether they’re making bad decisions when buying a vehicle. That recklessness comes with heavy consequences down the road, and they often get ugly.
If you’ve ever experienced bad credit, or talked to anyone who has bad credit, then you’ll know how crippling it can get. Financing for anything with bad credit is nearly impossible. In most cases, people need to be extremely lucky, work their butts off, or both, to get rid of that huge red flag hanging over their loan applications.
One of the biggest obstacles bad credit causes to your financial freedom is high interest rates. The rationale goes that since banks are worried about not getting paid back, they’ll make you think twice about using it in the first place. The strategy works for the most part, but there are times when things go completely out of hand, and the numbers defy belief. The highest interest rate for a credit card belongs to a 58-year-old Texas woman who discovered she had a 79.9% interest rate, and yes, it was legal.
This just goes to show how heavy financial decisions can affect your life, for better or worse.