When it comes to making decisions about our purchases, sometimes habit trumps common sense.
That would explain why I recently plunked down $100 on insurance for my new cell phone. I've always purchased the insurance plan before, so I didn't think twice about doing it again - never mind that I have yet to lose or break a phone.
But according to Consumer Reports, I could save big bucks by forgoing my wireless provider's insurance policy - and some other common financial products - next time around.
By breaking habit and opting out of certain purchases - from insurance to investments to consumer protection - shoppers can save money without giving up much in return, according to Chicago bankruptcy attorneys.
Many of us commute to work in older cars - after all, who can afford a new set of wheels right now? Yet when we pay for insurance, we buy the same policy we did when we had a newer ride - including collision insurance that can cost $300 or more a year. Eventually the price you're paying becomes more than the maximum payment you're eligible to receive - for instance, if your car is valued at $750 and you've got a $500 deductible, you'd only be eligible for $250 to cover damages. In this case, you'd be better off saving your money.
Here's something we've heard a lot about lately: fee-based checking. Banks are increasingly adding checking account fees to make up for the fees they can no longer levy on credit card accounts. But free accounts still exist - banks just aren't advertising them. Consider asking your bank if you can switch over to a bare-bones account to escape fees.
As for that cell phone insurance, it turns out that many plans have exemptions. If your phone is damaged, for instance, you might not be eligible for a replacement. And even if the company does replace your cell, there's no guarantee that you'll get a new phone - or even the same model.
Ultimately, it's up to you to decide which risks you can afford and which you can't. That said, there are costs - health and home insurance, for instance - that are absolutely necessary. If you've got so much debt that it's become difficult to afford life's necessities, bankruptcy might be a way to get back on your feet financially. Let our trained Chicago bankruptcy attorneys determine if there's a bankruptcy plan right for you when you try a free one-on-one debt analysis.
