Beware the financial black holes

Every year, thousands of people pay hundreds of pounds for “added perks” on their bank account that they don’t ever use. These packaged accounts, which charge monthly fees of up to £15 for benefits such as travel insurance and breakdown cover, make up a quarter of current accounts available.
Michelle Slade, of Moneyfacts.com, says these accounts used to offer more competitive credit interest and overdraft rates, but this is no longer the case.“Packaged accounts can be a good option if you use the benefits fully, but in most instances people don’t. Monthly fees can quickly add up, so if you don’t use the benefits you’re paying good money for nothing. Better deals can be found without having to pay a monthly fee.”
2 DON’T BE FOOLED INTO HIRING ELECTRICAL ITEMS
It may be tempting to rent a widescreen television at a monthly price you can afford, but this is one of the biggest mistakes you can make. With renting you are left with nothing – only the prospect of never-ending monthly payments. If you can be patient and save the money for a few months instead, you will give yourself a chance to buy it outright.
For example, you can hire a 19in Sanyo television at Rentaldeals.co.uk for £3.46 a week, or £179.92 a year. But you could buy the same brand new model from Amazon.co.uk for £217.16. Those who are tempted to hire a Bosch washer/dryer at a cost of £7.84 per month, or £407.68 a year, could buy it new from Argos for £546.27.
3 DON’T FALL FOR THE FREE LAPTOP TRAP
Free laptop deals with mobile phone contracts are very popular at the moment, but it is essential that you read the small print of the contract, as you may be paying much more than necessary.
Mike Wilson, the manager of mobiles and broadband at Moneysupermarket.com, says that by comparing deals, you could save hundreds of pounds over the term of the contract, enough to buy a better laptop elsewhere:
“Some of the mobile tariffs offering this type of free gift will tie you into an 18-month contract at upwards of £30 per month, but if you don’t use the inclusive minutes and texts then you’re better off with a cheaper, more suitable contract, and buying the laptop yourself.”


Source