How to be a Savvy Consumer

Regardless of whether we are on a tight budget or have loads of money to spare, we all want our dollars to be spent wisely.  The 2008 Consumer Action Handbook, available for free as a PDF or in paper format from the Federal Citizen Information Center includes a list of thirteen quick consumer tips.  I have reprinted the list here with their links.

1. A deal that sounds too good to be true usually is! Offers that often fall into this
   category are promises to fix your credit problems, low-interest credit cards, deals that let you skip credit card payments, business/job opportunities, risk-free investments, and free travel.
2. Extended warranties and service contracts are rarely worth what you pay for them
3. Say no to credit insurance offers. Often offered with credit cards, car loans and home
   mortgages, it is almost always better to purchase regular property, life or disability insurance.
4. There is no universal three-day cooling-off period. Don't be misled into thinking that you have an
   automatic three days to cancel a purchase. Only a few types of contracts give you a right to cancel.
5. Think twice before sharing personal information.
6. Beware of
   payday and tax refund loans. Interest rates on these loans are usually excessive.
     Even a high-interest cash advance on a credit card could be a better option.
7. Not all plastic cards offer the same protections. Your liability for the unauthorized use of a
     gift card and debit/ATM card may be much higher than the $50 maximum on your credit card.
8. Real estate agents represent the seller – not the buyer. When buying, consider hiring an agent
   or lawyer who represents you.
9. Home improvement and auto repairs are the subject of frequent complaints Second opinions are especially
     important when you are dealing with a repair service you do not know.
10. Think twice before you rent-to-own. Interest rates on rent-to-own purchases can be very high.
      If you miss a payment, you could end up with nothing. Consider other options such as buying second-hand at a
      thrift shop or through ads in your local newspaper.
11. Don't buy under stress. Research suggests senior citizens, people in crisis (e.g., coping
    with a death or debt), college students, small business owners, minorities, and immigrants are especially
    at risk of being victimized. Avoid making big-ticket purchases during times of duress.
12. Be cautious of Buy Here, Pay Here lots. If you decide to buy a car from a used car lot,
    be sure to read all of the papers before you sign.  Don't sign contracts that allow the dealership to
    change the finance rate AFTER you leave the lot.
13. Work-at-home ads usually don't pay off. Be especially wary of ads that promise huge
    annual salaries; they often require expensive upfront fees with no guarantee.  You risk losing your
    money and wasting a lot of time and energy.

The Consumer Action website is full of additional information on what to do if you have been wronged as a consumer and additional resources on how to be a savvy consumer.  Check it out!

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