Your parents may assume they have more financial knowledge than you due to their extensive experience, but you shouldn’t assume the same. New scams pop up all the time to exploit needs and trick people looking for quick fixes. If you can’t protect your parents from these types of financial traps, there’s probably no one who can.
A post at PT Money recounts the sad tale of how the writer’s mom refinanced into an adjustable rate mortgage that, over the long run, would force her to pay $500,000 interest on a $300,000 loan. She became desperate to get out of that loan, and was suckered in by a firm that offered debt relief in exchange for a $2,500 upfront fee. The writer’s mom lost the money, but could have avoided the scam had she checked out the company’s background.
Although some parents can be reticent to discuss their finances, it’s a good idea to get them talking about money openly and regularly so you can keep an eye out for any red flags.
Previously: Warning Signs Of Online Loan Scams