There are a plethora of financial products and services out there, most of them are really useful provided you use them for what they are meant and designed for. However, there are some financial products and services that are just designed to pull an extra buck from you. Sometimes a branch sales person will try selling you such a service and other times it will be a telesales rep. Whoever is doing the selling, before you react just remember that these people are just doing their job – ‘selling’, they get paid to convince you. There is no point in being rude to them, if you must share an opinion share it with product managers who sit in their ivory towers making all the assumptions that result in some of these non beneficial financial products. We have taken the liberty to identify some of these products/services you should try to avoid.
- Insurance plans on the credit cards. Okay, so insurance is a great idea, but there are some insurance covers sold to credit card holders that you should avoid. Some credit card providers offer insurance covers to the effect of health plans and child education plans. If you are serious about getting health insurance, there are a variety of insurance providers offering some really good health insurance plans that will be a lot more comprehensive in nature and will offer adequate coverage. You should definitely get health insurance, just don’t do it from your credit card provider. Secondly, if you are thinking of getting a child education plan, then look in to the unit linked options of products specifically designed for this. If you want to get such a plan talk to a provider that offers unit linked insurance plans who will be able to guide with relation to your need and saving goals for children’s education expense. This way you will be able to speak to a trained representative in the particular product/service specialty. They would be able to guide you more effectively ensuring you don’t end up wasting your money and time.
- Cash against Cash Loans: So you need a loan for something. There are many options available to arrange financing. You can borrow against liquid assets (eg. Mutual Fund Units, Cash, Inventory etc.), or you can borrow against your property and other fixed assets and lastly you can apply for a personal installment loan. If you are thinking about borrowing against your cash at bank don’t do it. The only reason you should opt for this option is if you are going to use the money to finance your small business operations. Since taking on debt is a more efficient means of financing when it comes to reducing effective taxes and your cost of capital. If you need the money for consumption, please use a personal installment loan instead of borrowing against your cash in viagraoverthecounter.biz an account.
- Bundled Products: Bundled product offerings are designed to extract more fees from you. Usually these will entail offering a current account, savings account, a type of loan, and or a credit card. You are better off getting these services independently as opposed to in a bundle. In the event you are unhappy about the service, you will have to cancel all the services together since these are sold as a bundle. Also this takes away your advantage to find and get the best product in each category. In most cases one service provider will really have a good product offering on credit cards, and the other on the account. It is seldom to find a product provider that does every thing right.
Having highlighted the above, you must bear in mind that these are just some of the products that you should avoid, there may be times when these products may make sense for you. If you find yourself in a situation like this, think through your options carefully. For better money management tips, tricks and advice stay tuned to our page to hear views and news from ordinary people who just happen to know a little about the personal finance landscape in Pakistan.