Revealed: the top 20 false economies
Paying the minimum amount off a credit card bill each month tops the nation’s list of false economies, according to comparison site Gocompare.com.
Buying counterfeit goods and lying on insurance applications to get a cheaper premium completed the top three.
Holidaying abroad without insurance (47%), buying cheap shoes (41%), and cheap paint (41%) also ranked high in the table of ‘bad buys’ that Brits make.
While over half of those surveyed said they have been caught out by buying cheap products, wasting both time and money, many admitted that a bad experience in the past hadn’t put them off trying to bag a bargain, with 49% admitting that they still look out for the cheap and cheerful option.
Claire Peate, customer insight manager at Gocompare.com, said: “No-one wants to waste money paying out more of their hard earned cash than they need to. While most people will be able to quickly recover the money lost on buying fake goods, a cheap pair of shoes or bra, other false economies can have more far reaching financial consequences.
“Making the minimum repayment on a credit card bill justifiably tops the list of false economies and can be a very expensive mistake. Credit card issuers add interest to any outstanding balance so the longer you take to repay the debt, the more money you will owe them. For example, it could take up to 37 years to repay a debt of £5,000 if you only make the minimum repayment each month.
“In order to get a cheaper deal, it may be tempting to provide incorrect or misleading information to insurance companies. But, this false economy can leave you seriously out of pocket, invalidate your insurance and make it harder for you to get cover in the future.”
|1||Just paying the minimum amount off your credit card each month||54|
|2||Buying counterfeit goods||51|
|3||Lying on your insurance application to get a cheaper premium||48|
|4||Going abroad without travel insurance||47|
|5||Not having your car serviced||45|
|6||Buying cheap shoes||41|
|7||Buying cheap paint||41|
|8||Buying cheap loo roll||40|
|9||Saving money by not having your boiler serviced||39|
|10||Comparing only price, not quality||38|
|11||Not having breakdown cover for your car||33|
|13||Buying a cheap car||27|
|14||Buying a cheap bra||25|
|15||Mobile phone contracts||19|
|16||Buying cheap moisturiser||17|
|17||Shopping at £1 shops||14|
|18||Doing-it-yourself rather than employing a tradesman||14|
|19||Trying to avoid baggage charges on budget flights||13|
|20||Multi-buy or 3 for 2 offers||13|