How many times have you bought own-brand loo roll only to wish you’d paid that little bit extra for a premium brand? Or perhaps you opted for the cheap tin of paint, but realised after three coats you should have just bought the one-coat stuff. These are just a couple of examples of false economies.
It’s thought that more than half of Brits have been caught out by a false economy. Yet despite most realising that they’ve wasted money, almost half of those (49%) would try the cheap option again. It seems that the UK really is a nation of bargain hunters.
1. Paying off the minimum
Despite the common misconception, credit cards don’t always open up a path to debt.
The problem with credit cards is that 54% people are wasting thousands of pounds by only paying the minimum payment.
As an example you could end up repaying a debt of £5,000 over a staggering 37 years if you only make the minimum monthly payment, and accrue a mountain of interest in the process.
The other option is to get a low interest or 0% deal – compare credit cards with Propertywide to see what’s available.
2. Buying counterfeit goods
Knock off goods are next on the list, with more than half (51%) of Brits getting stung by saving a few quid on a fake. Whether it’s a Louis Vuitton handbag or Jimmy Choo shoes, buying counterfeit goods might be cheaper, but they’re unlikely to last.
3. Lying on insurance applications
Have you ever declared yourself as a named driver when you’re really the main driver? Or said that you don’t live anywhere near a river? These lies are incredibly common; in fact 48% of Brits have lied in order to get a cheaper premium. It might seem like a good idea until you’re unable to claim because the policy isn’t valid.
4. Not buying travel insurance
A travel insurance policy covers a whole host of things, from medical expenses to compensation for delayed and cancelled flights. While saving £50 might be your priority, it’s often much better to buy the policy, just in case – as 47% Brits found out.
5. Not having the car serviced
By skimping on the service and only having an MOT, motorists could end up having to pay out much more in the end. The earlier problems are picked up, the cheaper they tend to be, so leaving minor niggles until they’re a disaster waiting to happen, isn’t a good idea.
6. Buying cheap products
From shoes to loo roll and paint to a bra, buying cheap products can prove to be a false economy. It might seem cheaper when standing in the store, but when you need twice as much or have to replace it within a few days, it would have been better value paying that little bit extra.
7. Comparing price over quality
There’s absolutely nothing wrong with price comparison, as long as you look at the price and the quality. For example, when you compare credit cards with Propertywide you will be presented with a list of cards with the best interest rates. However, consumers also need to consider whether there any rewards, who the provider is, where they can shop and if there are any other charges to pay.
8. Gym membership
Do you go to the gym three times a week? No? Then cancel your membership. To become a member at a private gym you have to pay fees. This could be as much as £50 a month. However, if you only pop in a couple of times a month, you can pay as little as £10 per session.
9. Attempting DIY
When homeowners need shelves put up or the garden landscaped, it’s easy for them to think they can do it themselves. However, after having a go at it, 14% found that it would have been cheaper (and probably far easier) to hire a professional in the first place.
10. Multi buy deals
When walking around the supermarket, there are deals and offers everywhere, trying to grab the shoppers’ eye. Unless you have a huge family, buying 10 litres of orange juice for the price of two, often ends up in most of it going to waste. Multi buy discounts are only good value for money if you’re going to use all of the products.