NORFOLK, Va. — When we take a step back, there are often unnecessary expenses hiding in our monthly finances. While they can appear helpful, experts say there are products and services you’re paying for that you don't necessarily need.
Yvonne McLeod learned that while trying to find a solution for her broken dishwasher and oven. Although she has a home warranty, she said it only covers a fraction of the repair or replacement costs for her appliances.
"They offered me $246 for the dishwasher. That doesn't even cover the cost for taking it out and delivering it," McLeod said.
Kevin Brasler, Executive Editor with Consumers' Checkbook, said many people find themselves in similar situations—not just with home warranties, but also with extended warranties for cars and extended product replacement on electronics.
"We dug into the policies of extended warranties for cars, and there were so many things excluded that we were left wondering, 'what's even left on this car to repair?'" Brasler said.
“[Other companies] often warn us about, oh, your furnace could die. That could be thousands of dollars to replace it. Here's an insurance policy against that risk,’ but [they] don't even disclose what's included in their policy until you've signed up sometimes."
To help consumers save money, Consumers' Checkbook compiled a list of items to reconsider before purchasing. "We throw away money on things we don't need all the time," Brasler said.
While it’s cumbersome, Brasler emphasized the importance of spending time reading the policies, so you fully understand what you agree to.
Outside of the home, he recommends cutting down on ATM fees. His team discovered many banks and credit unions offer reimbursements for these fees.
These fees may not destroy your finances, but making small changes across your budget can have a big impact.
Additionally, consumers should monitor how many subscriptions they have compared to how many they actively use.
"If you haven't streamed a certain channel for a long time, get rid of it. You can always sign back up again later," Brasler said.
When it comes to subscriptions, Consumers’ Checkbook raises an important question: Are you getting the most out of your subscriptions?
Take Amazon Prime, for example. Although most people pay $139 a year for Prime, many don’t fully utilize its benefits.
"Unless you watch its original TV programming or use unlimited photo storage and music, you're probably leaving money on the table," he said.
He also advised avoiding credit card interest and late fees. If a payment is missed, he suggests informing creditors about your situation, as they may be willing to negotiate on payment amounts.
