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Avoid these money-wasting mistakes

The world has still far from recovered from the global recession, yet people manage to waste money daily. We blame the banks and politicians, but are we being frugal enough? Avoid these money-wasting mistakes.

Insisting on brand loyalty. Sure, we all have our brand favourites but often generic or store brand clones are very similar in quality, if not indistinguishable, and can save you at least 25 percent or more. Check them out and compare the difference.

Buying from TV infomercials. TV products are overpriced and they hardly ever turn out as depicted. Plus shipping and handling costs can be enormous. If you're still tempted to buy, most items are available at many retail stores, often at sale prices and you save the shipping charges.

Failure to return items. It doesn't fit right or the colour is wrong or it was just a plain mistake, but who has time to trek back to the store? You do. If you still have receipts, try to get a refund for all new items with tags or original packaging. At least get a store credit.

Late fees. Don't be a late payer. Late fees on credit card accounts, mortgages, car loans, property taxes - even library books and DVD rentals are extremely high.  Record due dates in your planner and pay on time. If you do incur a late fee, call immediately. Most creditors will waive the fee if you have a good payment record.

Overdraft fees. A small slip-up can easily turn a Dh25 burger into a Dh200 overdraft fee.  Even if your bank is happy to cover your mistakes you'll be not only be charged a fee, but at least 21 per cent interest until the overdraft is covered. Look into your chequing account options.

Extended warranties. Extended warranties are mostly profit for the retailer.  Generally, if an item is going to fail, it will do so early on and the manufacturer's warranty will cover it.

Buying in bulk. It's easy to get carried away when you walk through a warehouse-like supermarket. Determine how much you really need and then consider the price. If it's more than you can reasonably use before the stuff turns stale, rotten or past expiration - or you just don't need it- you're throwing money down the drain. If you must buy in large quantities, invest in a vacuum sealing machine or a large freezer for storage.

Debt management company. Debt management organisations negotiate with consumers' creditors on their behalf, to reduce customers' debts in a manageable way. Fee-charging debt management firms generally target people who are in serious financial trouble. The firms sell themselves as a last resort rescue option. However, those with financial problems should never need to use fee-charging debt management companies. Debt advice bank professionals provide a more comprehensive, impartial service - free of charge.

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