How or where not to spend your money

When we spend money, we expect something in return of value. This is not difficult to conceive because we exchange money for a product or service everyday. But does spending money always give the consumer something in return of value? The answer is no. How? When the purchase decision is based on a promise instead of certainty of getting something in return, the purchaser may not get anything.

The risk of loosing money is not clear to the purchaser at the time of the purchase. He is lured into spending the money because he is convinced of bigger returns. Think of the print and or electronic ads asking you to spend money with a promise for bigger returns. You may find an ad that says make $500 daily or thousands in a week. The ad may state that you can make this money at home without any prior experience. Before you start making this kind of money you are asked to pay some fee to find out how. This is likely a scam.

This is just one technique that a scammer can use to have people dig into their pockets. To protect yourself, be on the lookout for empty and unreasonable promises. Here are some common tricks to avoid spending money on:

• Joining a network - you are asked to join a network with a promise you will earn as you recruit more people.
• Paying for a guaranteed loan - you are asked to pay in advance to get a guaranteed loan. A legitimate lending institution never promises you will get a loan. Remember the loan approval process is dependent on your credit report and other factors.
• Earning big bucks quickly - pay some money to learn to make big money. How about making thousands weekly at home for a small fee? Such work-at-home schemes are just scams. if this was true, everyone would be rich and the scammer would not ask you for $100.
• Getting a no-risk offer now - scammers call you and ask you for your credit or bank account number for anything. The caller may attempt to convince you that this is a no-risk offer and the offer won't be good after the phone call. Don't take the risk. Don't fall for this offer.
• Giving to fake charities - don't give to charities unless you verify the charity is legitimate. After a natural disaster, for instance, charties are just born to collect funds but don't offer any relief to the disaster victims.
• Paying for free services - don't pay for free government services such as changing your address or name, applying for benefits, etc.
• Claiming a prize - were you or are you notified of prize-winning notice, unexpectedly? Chances are it's just a scam. Avoid inquires on such notifications. If you are asked to dial a number, you may end up with a big long-distance bill.
• Erasing your bad credit hostroy - there is no eraser for credit reports. Any legtimate negative reproting is to stay on credit reporsts. Avoid paying for services that promise you any negative information on your credit file will be erased.

The best defense against falling for these and other tricks is probably to do your homework before you spend money. Try doing business only with those you trust and know.

If you are scammed, as a courtesy to help others, you may contact the advertising outlet to explain you situation so the scam ads don’t continue to run. Doing this may get you your money back but will help others from loosing money.

Posted on: 9:02:17 PM EDT March 30 2008

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