Everyone wants to make millions on TikTok, but few people know these two disastrous lessons: Wrong one glass goes a thousand miles

There is no denying that social networks have made it easier for people to connect and spread information, even learning online. But according to experts, this is not the right place to seek financial advice.

Anyone can claim to be an expert and give financial advice on the Internet. Following the advice of online novices can lead to financial loss and even legal trouble in some cases.

The Cnet writer talked to lawyer Michelle Creeden and law firm director David A. Gelinas about financial advice on TikTok. They now work at the National Legal Center, which helps people with credit and debt problems. Creeden is a New Hampshire licensed attorney with experience in consumer and debtor rights. Meanwhile, Gelinas has over 30 years of experience in credit counseling, non-profit debt management and debt settlement.

They have all helped unfortunate clients follow false financial advice on social media.

Anyone can claim to be an “expert”.

The financial space on TikTok is summed up in the word “FinTok”, which is global and growing. Content tagged #stocktok currently has more than 2.9 billion views from users, while #PersonalFinance content has more than 7.5 billion views.

” There are a lot of people who teach you things that they don’t understand themselves,” says Creeden. “I’ve seen a lot of clients bring or send me links to financial advice online. But these are just words from someone with a bit of financial information and they’re just enough to pose a threat. dangerous “.

According to Gelinas, FinTok “financial experts” tend to provide general information and may leave out some important specifics. ” They can easily get someone into trouble, ” he said.

For example, one of Creeden’s customers watched TikTok about the snowball method – a popular strategy for debt repayment, which helps to divide money and handle debt in a scientific way.

According to Ramsey Solutions, debtors need to pay their debts in order from smallest to largest. After the smallest loan is paid off, the debtor moves on to the next smallest loan. Thanks to this method, the debtor has an incentive to pay off the remaining loans.

Many TikTokers (TikTok users) have mentioned this method in money videos. But Creeden points out that much of it doesn’t mean that while paying off the smallest debt, people still need to pay the minimum limit on other debts.

” Not everyone realizes this. If they follow certain information without really understanding it, they could be in more serious trouble. Customers come to us after being sued for many debts. and they have no plan to deal with it ,” Creeden shared.

The female lawyer also added that many people give advice on debt settlement, but they do not mention the risks that debtors may face.

Legal advice on TikTok is especially dangerous

The problem can be exacerbated when TikTokers give legal advice. In the US, each state has its own set of laws that apply in that particular region.

When asked for advice, TikToker may give advice that is inconsistent with the laws of the state where the asker lives, not to mention where the asker may reside in another country. If the information is not filtered and researched thoroughly, the questioner may face a round of labor.

Creeden says that when someone not in the legal profession gives legal advice, they are more likely to give false information. The consequences can be severe and affect the recipient’s finances.

How to find useful money advice online

Both Creeden and Gelinas agree that there are benefits on FinTok. ” My generation didn’t know much about credit or debt or how to invest. That’s not what we learn in school ,” Creeden said.

In the past, money advice was hard to reach, and social media is changing that. Young people can become familiar with these topics by exploring social networks. They can learn important financial terms and increase their basic understanding of money.

Social network users should note that it is important to stay awake and alert to the information they receive. Gelinas emphasized that if people want to try to apply financial advice online, people need to verify information from multiple sources and do thorough research.

In addition, people need to learn about the author – who gives advice. Are they a recognized financial expert and do they have the credentials to back it up?

Everyone needs to keep in mind that personal finance is always personal, meaning that one person’s advice may not be appropriate for another. When in a crisis, the best thing everyone should do is reach out to a professional for help.

According to Cnet