How Our Emotions May Lead To Irrational Money Decisions

As consumers, emotions drive our decisions. Neuroscientists tell us that we make our decisions emotionally and intuitively nearly 95% of the time.

Reverse mortgages are loans that enable homeowners, usually at retirement age, to tap into the equity in their homes.

Selleck’s emotional promotion of reverse mortgage must be accompanied by an understanding of the drawbacks for those considering this loan.

Emotional Ads Many ads contain emotional messages to build brands. Through excellent storytelling, music, and entertainment, we can get sucked into the sales pitch unknowingly.

Overspending Due To Irrational Decisions Marketing strategies, if successful, may lead to consumers being profitable. Consumers that will lead to overspending because of irrational decision-making.

Biases Add to Our Bad Choices Biases often result in us spending more than we should, paying off slower or not at all.

Use These Rules For Better Money Habits: 1. Shop wisely for a credit card, understanding the hidden fees that may not be worth the perks.

2. Read the fine print– terms and conditions– carefully even after you have made your selection.

3. Pay your credit card bill in full, so you don’t carry a  balance. 4. Spend below your means always.

5. Pay with alternatives to credit cards if you are carrying significant balances

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