Everyone is seeking to cut household spending while still maintaining a decent standard of living. With many families facing financial hardship, it should come as no surprise that making wise choices is absolutely necessary in order to stay afloat. Unfortunately, some financial products are less likely to be helpful these days. Here are three examples.
Payment Protection Insurance claims to provide coverage with all sorts of debt in the event of an accident that prevents the insured party from working, or a loss of employment. What are not always clear are the limitations associated with this coverage or the overall costs. Be wary of taking out this type of coverage unless you have all the answers. As an alternative, consider an income protection policy.
Extended warranties are generally considered money savers in the long run. After all, they provide protection in the event that a major appliance fails during the life of the warranty. What is not always mentioned to the consumer is that the manufacturer warranty will provide most of the same type of protection and at a considerably lower cost. Never allow yourself to be talked into an extended warranty before you look at the provisions found in the manufacturer warranty.
Beware of shopping using your store cards. Engage in a little credit card comparison, paying special attention to the interest applied to outstanding balances and compare them to major credit cards issued by banks. You will often find the interest rates on the store cards do not compare favourably with the major cards. If you must use a credit card, ensure you use cards with a lower interest rate.
