Top Ten Purchase Mistakes

The MMI Online Articles are designed to inform, assist, educate and alert consumers.

The Consumer Literacy Consortium released its list of the top consumer purchase mistakes as part of its ongoing campaign to reduce wasteful consumer spending.

"Consumers lose billions of dollars each year because of hasty, uninformed purchases - not just on big ticket items, but on everyday purchases as well," said Consumer Federation of American Executive Director Steve Brobeck.

The common, repeated mistakes that needlessly cost consumers include:


1. Leasing rather than buying a car in the belief that leasing costs less.

2. Not searching carefully for a competent, honest, auto mechanic.

3. Assuming their insurance agent will "shop the market" to get the best auto and homeowner policy.

4. Not holding a cash-value life insurance policy for at least 15 years.

5. Not maintaining the minimum balance required to avoid checking fees.

6. Holding many credit cards.

7. Taking out a 30-year mortgage loan rather than a 15-year loan, just because the monthly payments are lower.

8. Paying in full for home improvements before the work has been completed satisfactorily.

9. Purchasing new appliances that are not energy efficient.

10. Not comparing unit prices on supermarket shelves.

This list and the tips contained in the free consumer guide "66 Ways to Save Money" are part of a campaign to reduce the more that $100 billion a year of wasted consumer expenditure.

The brochure is free by sending a SASE to "66 Ways to Save Money" PO Box 12099, Washington DC 2005-0999 or online at 66ways.org. For a copy of the 10 Mistakes: CFA, 1424 16th Street, NW, Suite 604, Washington DC 20036.

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