Financial Mistakes

'Neither a borrower nor lender be' – Shakespeare’s Hamlet

Check out the USAToday article Eight Money Missteps that can really hurt you financially.

1. Don’t Raid your 401(k) – most states protect retirement accounts from bankruptcy claims. "Some people use their IRAs, and then they wind up in bankruptcy, anyway. So now, they're bankrupt and they don't have any retirement."

2. Don’t walk out on a mortgage – sell the house.

3. Don’t ignore your credit card balance

4. Avoid debt-consolidation firms – most are scams

5. Don’t co-sign a loan for a friend or relative – you’ll regret it later when they default. You’ll lose a friend and your money.

6. Don’t use Payday loans – the interest rate is an outrageous, 391% to 521% annualized.

7. Use a Reverse Mortgage only as a last resort – the fees are high

8. Don’t stiff Uncle Sam by not paying your taxes. He will catch you and the penalties are stiff.

Bottom Line

In short – avoid loans, pay your debts, don’t sacrifice your retirement.