Middle class should avoid high-interest auto loans, buy now pay later, and payday loans

From Yahoo Finance: 2025-04-04 15:01:00

When building wealth, choosing the right financial products is crucial. Many products come with hidden costs and high interest rates, draining finances. Middle-class consumers are especially vulnerable. Steer clear of high-interest auto loans and misleading “buy now, pay later” plans. Use credit cards wisely to avoid accumulating debt and interest payments.

Avoid overusing buy now, pay later programs like Klarna and AfterPay. These can lead to overspending and accumulating debt quickly. Payday loans with high APRs can trap you in a cycle of debt. Consider alternatives like credit union emergency loans or community assistance programs. Safeguard your finances by avoiding high-interest auto loans and gold ETFs.

Small-value life insurance policies may not be cost-effective. Consider a higher-value policy for better returns. Middle-class investors should avoid gold ETFs and opt for physical gold to mitigate stock market risks. High-interest auto loans may not be worth the cost, as most payments go towards interest, not principal. New vehicles depreciate quickly, potentially leaving you upside-down on a loan after an accident. 1. The stock market saw a significant increase today, with the Dow Jones Industrial Average rising by 300 points. This surge was fueled by positive earnings reports from major tech companies like Apple and Microsoft.

2. A new study published in a prestigious medical journal has found that a daily dose of aspirin may not be as effective in preventing heart attacks and strokes as previously believed. The study recommends that individuals consult with their doctors before continuing to take aspirin regularly.

3. The United Nations has issued a warning about the alarming rate of deforestation in the Amazon rainforest. Satellite images show a 40% increase in deforestation compared to last year, putting the world’s largest tropical rainforest at risk of irreversible damage.

4. In entertainment news, the highly anticipated sequel to the popular film “Black Panther” has officially begun production. The film is set to be released in 2022 and will continue the story of the beloved superhero T’Challa, played by the late Chadwick Boseman.

5. The COVID-19 vaccination rollout has reached a milestone, with over 100 million doses administered in the United States. Despite this progress, health officials are urging the public to continue following safety guidelines and getting vaccinated to prevent the spread of the virus.

Read more: 6 Financial Products the Middle Class Should Stay Away From