Why You Should Always Read The Small Print
It seems very obvious to say that you should always read any contract before signing it, whether it is for a credit card, loan, insurance or mortgage, but many people don't.
Price remains the main consideration and looking beyond that is rarer than you might think.
Yet consumers and borrowers could end up paying thousands more than they should or missing out on benefits they should get simply by not reading the small print on a contract or loan agreement.
Here are some examples where not reading the small print could end up costing you money.
Credit Cards Many credit card companies now offer 0% interest on balance transfers and purchases for a certain period of time - usually nine or 12 months - and while this is often a very good deal, allowing you to move your debt around and reduce it quicker by not paying interest, you should read the contract closely.
It is often the case that while the 0% interest on a balance transfer will last the full period stated, the period will often be much, much shorter of purchases.
This isn't always clearly stated and a high interest rate on purchases made with the credit card could wipe out any headway you were making with repaying the balance transfer you originally hoped to clear.
There are credit card companies out there that will keep the interest rate at 0% on both balance transfers and purchases for the full term offered, then revert the rate for both back to their normal one.
It is worth shopping around.
Personal Loans The practice of mis-selling payment protection insurance on loans by banks and loan companies has been highlighted a lot over the last few years.
Many borrowers have found that they've been paying for insurance they did not ask for and did not need, often amounting to several thousands of pounds over the course of the loan.
While it is possible to claim some or all of this money back if you have already paid for PPI that was mis-sold, it is always better to avoid paying it in the first place by reading the small print on the contract.
If there is any mention of insurance then ask the bank or loan company about it before you sign.
You may decide you would like the insurance for peace of mind but if you don't then get it removed before you sign and you will save yourself a lot of money.
Paying For Insurance Monthly Paying for your insurance monthly - this includes car insurance, contents insurance and buildings insurance and similar - seems like a very good idea.
It costs you less in the short term and you can budget for it each month.
However, it will end up costing you a lot more in the long run than if you paid the full balance all at once.
This isn't always clear when you take out insurance and the insurance company will often try to push you towards the monthly option.
Read the small print on the contract before you sign to see just how much more it will cost you to pay monthly.
If you're OK with it, go ahead and do it that way.
If not, pay the full annual fee now or find another insurance company that will charge you less for the monthly option.
There are other examples of the small print in contracts costing the consumer money, that's why it is important you read every contract you are ever asked to sign very closely.
Price remains the main consideration and looking beyond that is rarer than you might think.
Yet consumers and borrowers could end up paying thousands more than they should or missing out on benefits they should get simply by not reading the small print on a contract or loan agreement.
Here are some examples where not reading the small print could end up costing you money.
Credit Cards Many credit card companies now offer 0% interest on balance transfers and purchases for a certain period of time - usually nine or 12 months - and while this is often a very good deal, allowing you to move your debt around and reduce it quicker by not paying interest, you should read the contract closely.
It is often the case that while the 0% interest on a balance transfer will last the full period stated, the period will often be much, much shorter of purchases.
This isn't always clearly stated and a high interest rate on purchases made with the credit card could wipe out any headway you were making with repaying the balance transfer you originally hoped to clear.
There are credit card companies out there that will keep the interest rate at 0% on both balance transfers and purchases for the full term offered, then revert the rate for both back to their normal one.
It is worth shopping around.
Personal Loans The practice of mis-selling payment protection insurance on loans by banks and loan companies has been highlighted a lot over the last few years.
Many borrowers have found that they've been paying for insurance they did not ask for and did not need, often amounting to several thousands of pounds over the course of the loan.
While it is possible to claim some or all of this money back if you have already paid for PPI that was mis-sold, it is always better to avoid paying it in the first place by reading the small print on the contract.
If there is any mention of insurance then ask the bank or loan company about it before you sign.
You may decide you would like the insurance for peace of mind but if you don't then get it removed before you sign and you will save yourself a lot of money.
Paying For Insurance Monthly Paying for your insurance monthly - this includes car insurance, contents insurance and buildings insurance and similar - seems like a very good idea.
It costs you less in the short term and you can budget for it each month.
However, it will end up costing you a lot more in the long run than if you paid the full balance all at once.
This isn't always clear when you take out insurance and the insurance company will often try to push you towards the monthly option.
Read the small print on the contract before you sign to see just how much more it will cost you to pay monthly.
If you're OK with it, go ahead and do it that way.
If not, pay the full annual fee now or find another insurance company that will charge you less for the monthly option.
There are other examples of the small print in contracts costing the consumer money, that's why it is important you read every contract you are ever asked to sign very closely.
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