As a personal finance expert, this is the worst savings advice I’ve seen on social media.

As a personal finance writer, my social media feed is flooded with content from personal finance influencers or “finfluencers.”

Some of this advice is helpful, but sometimes I come across tips to make me do double take. And it’s not a good idea.

Here are some of the worst financial advice I’ve come across on my feed. Plus, there are a few tips to avoid bad money advice on social media.

read more: Check your kit on social media. Is it a bank fraud?

You come across payday loan ads on social media and promise fast cash without credit checks. According to Better Business Bureau (BBB), these ads are often targeted at younger users who may not understand the associated risks.

Payday loans, sometimes known as cash advances, are short-term loans, usually around $500 or less, and must be repaid within a few weeks. If you are trapped in a pay-to-pay wage cycle and need to cover your emergency expenses, you can opt for a payday loan.

Downside: Payday loan providers charge exorbitant fees and high interest rates. According to Responsible Lending Centrepayday loan fees can amount to an APR as high as 662% in certain states.

Payday loans can seem like a quick fix to your cash flow crunch, but these short-term, high-profit loans lead to a vicious cycle of borrowing as they float.

Better Options: Ask if your service provider is willing to offer a payment extension or a more flexible repayment plan. Credit cards, which offer an interest-free introductory period, can also offer short-term solutions that are a little more flexible than payday loans.

For long-term solutions, prioritize building emergency funds and cover costs in a pinch.

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Renting is a waste of time and money

Homeownership is often advertised as one of the best ways to build long-term wealth. However, owning a home has many costs and challenges, and it’s not for everyone.

However, some tictalkers argue that renting a place inherently throws away money and encourages viewers to jump on the real estate ladder as quickly as possible.

This may be a viable option for some, but saving enough money for a down payment at home can take time. As of June 2024, Median down payment The US home had $67,500, according to real estate company Redfin.

If you are not in a position to buy a home, renting will allow you to buy the time you need to save money due to down payment and occupancy costs. You can also give your debts and time to improve your credit score to ensure a more favorable interest rate in your home.

Luckily, how to save rental costs when preparing to become a homeowner, such as signing a longer lease, negotiating rent with your landlord, or splitting monthly rent with your roommate There are a few. And if you’re not interested in buying a house at all, that’s fine too.

read more: Can I save both my down payment and emergency funds at the same time?

Credit cards often get bad wraps to lead to unmanageable and high profit debt. That’s definitely true for some people, but it doesn’t have to be for you. Credit cards can be a useful tool for building credit scores, financing large purchases, and earning valuable rewards.

The key is to manage your credit card responsibly and strategically. You can set up your safeguard to keep your credit card spending down, such as setting account balances, keeping your credit usage low, and charging only what you can afford to pay off your credit card.

Of course, if you know you’re struggling with excessive spending, or you already have high profit debts working to pay off your compensation, a credit card is not the best option. It might be.

read more: Credit card debt payment strategy

If you are struggling with increasing debt, certain venfluencers on social media advertising bankruptcy as a way to wipe your slate clean. Bankruptcy helps you start a new life, but it also has serious long-term consequences for your credit and finances.

Bankruptcy is a legal process that allows individuals or businesses who cannot pay their debts, to seek relief from some or all of these obligations. This may sound like a great idea, but it’s not a decision to be underestimated. Bankruptcy can cause significant reductions in your credit score, loss of assets, and additional costs in the form of attorneys’ fees.

If you are bound and can’t handle your debt, you can check if there’s a way to redo your budget, make extra payments on your balance and wipe out your debt. If not, check if your credit card company or loan provider is willing to work with you on an alternative payment plan. Options like consolidation, refinance, and debt settlement are also viable alternatives with less severe consequences.

read more: Money Basics: What is Bankruptcy?

There is a lot of bad advice for each social media feed wisdom nugget. Do your homework before getting a financial pointer from anyone on social media.

• The so-called expert and their credentials are veterinarians: Dive in to figure out if the money provider has the background and experience to do so. Are they certified financial planners or tax professionals? Have they worked with clients in similar situations before? What makes them qualify for you to give financial advice?

• Look for shade disclosure: If your social media posts promote a particular financial product, read the fine print to determine whether the product is a really good product or whether the product is a paid ad. please.

• Find out when to call a pro: If you are in doubt, talking to a professional debt counselor or financial advisor can help you get the guidance you need to make the most informed decision.