8 Common Scams That You Don't Even Know Are Scams

You or someone you know has probably fallen for one of these very common scams. I’m not talking about crypto or MLMs, but everyday traps that are sucking your money away. A few of them even make me angry.

Let’s dive into some of the worst offenders.

1. College: Is It Really Worth It?

This might be the most controversial one, but hear me out. For some people, college is essential—like if you want to be a doctor, nurse, or lawyer.

But here’s the shocking part: about 52% of college graduates are working in jobs that don’t require a degree. Considering the average student loan debt is around $30,000 to $40,000, that’s a lot of unnecessary debt for many.

This issue can be traced back to 1965 when the government started guaranteeing student loans, allowing 17- and 18-year-olds to take out almost unlimited loans for degrees they might not even need.

Most people don’t know what they want to do at that age, yet they’re encouraged to take on life-changing debt. For many, this just makes life harder.

2. Payday Loans: The Definition of Predatory Lending

If you thought payday loans were predatory, you're right. These loans target the people least able to pay, those living paycheck to paycheck. The interest rates are absurd. It’s a vicious cycle that makes it easy for things to spiral out of control.

Some states are starting to crack down on these loans, and for good reason.

3. Tax Services: Why Is Filing So Complicated?

The U.S. tax code is a mess, so much so that the average American spends money to pay someone else to file their taxes.

U.S. taxpayers collectively shell out around $104 billion annually just to file taxes.

Other countries, like the UK, have a return-free system, where you pay the correct amount of taxes throughout the year, avoiding the stress and expense of filing.

4. Sports Betting: The Odds Are Against You

Sports betting is becoming more popular, but the math doesn’t lie. If you bet on roulette, you lose around $5.26 on average for every dollar you spend, but with sports betting, that jumps to $7.7. Despite the illusion of better odds, sports betting is more of a money-losing game than going to the casino.

5. Weddings: A Money Pit?

Weddings can be a beautiful celebration, but they’re often a financial trap. There’s this rule that you should spend three months’ salary on a wedding ring, which makes no sense when you're just starting out.

Then there’s the thousands on dresses, venues, food, and photos. While photos might be worth the investment, spending life-changing money on one day is something to rethink.

6. Buy Now, Pay Later: A Debt Trap in Disguise

Buy Now, Pay Later (BNPL) services may seem convenient, but they often trick people into buying things they can’t really afford.

Micro-payments make it easy to rack up multiple purchases, leading to years of debt.

7. Credit Scores: A Flawed System

Credit scores are essential for getting loans, but the system is flawed. Factors like income and net worth aren’t considered, and without a credit history, even financially responsible people may struggle to get a mortgage. It forces people to take on debt just to play the game.