Costly mistakes that can derail your financial goals

This article examines a variety of common financial missteps that could slow down your journey toward achieving financial security and prosperity.

- Craig Torr

Balloon payment for your car To make a vehicle more affordable on a monthly basis, many dealerships structure financing agreements which include a balloon payment, or residual value, at the end of the contract term. A balloon payment is where a percentage of the vehicle's value is taken off the financed amount, with this residual amount becoming payable as a lump sum at the end of the financing period. While this has the effect of lowering your monthly repayments—thereby making the vehicle appear more "affordable"—you still pay interest on the residual amount and will need to ensure that you have a capital amount available at the end of the contract or risk having to sell your car.