Here are the 5 financial tips for the first week of May 2012

Tip no 1 – Avoid taking out an auto loan or payday loan for making money fast. These are cash traps.

Auto loans are secured loans, meaning you pledge your car as the collateral against the loan. If the loans remain unpaid due to financial hardship, then you'll have to hand over your car to the lender. It will create additional stress upon you. It'll become problematic to commute to your office or college every day.

Payday loans come up with very high interests. The interest rates can be as high as 750%. It'll become very difficult for you to pay off these loans. You'll get entrapped into the payday loan debt cycle very soon.

Tip no 2 – As a newlywed couple, you can fix a meeting with a qualified financial professional to discuss your financial goals.

Your responsibility becomes double after getting married. Now, you have look after your spouse along with yourself. Set up an appointment with a financial professional to carry your responsibility with full vigor. Discuss the financial issues with the professional and learn the tactics to manage money. The professional can help you devise strategies and meet your financial goals. You can involve your spouse in the discussions. Your life partner should know if you're facing a financial problem. This will help him/her in making the right decisions. He/she'll spend money cautiously and help you achieve your financial goals.

Tip no 3 – Think twice before buying extended warranty because they are not always effective. Moreover, the products can also depreciate in value causing you to lose the money.

This tip is a valid one. A lot of people have the tendency to buy extended warranties when purchasing an electrical device. However, very few people know that they are not effective. These things come with various exclusions. Moreover, you have to spend dollars out of your own pocket while buying an extended warranty. For instance, you buy the extended warranty on a certain product by spending $40. If the value of the product depreciates within the stipulated time period, you'll be wasting this $40.

Tip no 4 – Be a responsible driver to enjoy lower auto insurance rates.

The auto insurance company will check your driving history before giving you a policy. If they see that you have been involved with several accidents in the past, then they'll automatically increase your premium rates. However, if they see that you've a clean credit history, then they'll lower your premium rates.

A risky driver always has a tendency to meet an accident. If you've met several accidents in the past, then there is a high chance of meeting an accident in future also. This means that you're most likely to make an insurance claim in future. The higher the chances of making an insurance claim, the greater will be the premium rate.

Tip no 5 - Know the myths that are associated with credit reports. This may help to fix the credit problem with ease.

This tip can help you navigate the credit repair process. Find out the myths associated with credit repair. Get to know about the actual truths behind the myths. For instance, a lot of people think it is bad to check credit reports frequently. They think that their credit score will drop. However, there is no truth in it. The credit score of a person will fall only when the creditors check his report frequently. The credit bureaus feel that the person is not a responsible borrower. He submits numerous credit applications from time to time and this is why creditors check his credit report.