Sure, we’ve all heard the good advice, “Never sign anything you haven’t read,” but then we get busy, or there just seems to be so much of it.
Just consider mortgages for a moment. Make sure you understand the interest rates and points. There are also prepayment penalties attached to many mortgages and home equity loans as a result of the fluctuating interest rates. These can really cost you if you try to take advantage of the changing rates by refinancing down the road.
And then there’s the small booklet that comes with your credit card. Look for any ‘universal default clause’ or UDC. This allows the credit card company to raise the interest rate if your payment is late.
Reread your income tax returns no matter who or what prepares them. You won’t avoid an audit by saying that the box said it was ok.
Even those extra pages that come with your monthly investment or bank account statements can hold important information about fees and minimums.
Never be afraid of taking your time to read and ask questions. It can save you time and money in the long run.
