TIPS TO AVOID TRAPS FROM REAL VALUE DEALS
1. Picking up a new credit card, by junking the expensive old one, on 0%
balance transfer deal
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It's a great way to save on interest, particularly if you aren't keen
on paying the high rate for revolving credit with your existing card.
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However, be warned that such a teaser deal is typically
temporary.
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If you don't pay the outstanding amount within the offer
period, you will be penalised with a higher interest rate, possibly more than
the one on your old credit card.
2. Straight cash discount instead of value-added promotion
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The trouble with most value-added offers is that they
come with caveats.
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It could be for a limited period, or you may land
discount vouchers/coupons that don't appeal to you.
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However, you are unlikely to find such bargains at
shopping malls.
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Hit standalone, smaller shops instead.
3. Registering on private sale websites
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To begin with, registration is free, so even if you never
get lucky, all you are wasting is time.
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These websites hold short-term flash sales on unsold
inventory, where you could land discounts of 40-70%.
4. Buying gold because the jeweller insists it's a good investment
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Given the high making charges and issues with determining
purity, make sure that you buy jewellery solely for the love of it.
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If investment is the agenda, you would be better off
buying gold bars/coins or gold funds.
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The jeweller who promises you the moon will be quick to
list out caveats while buying it back.
5. Renting a car at the
airport at a 10% discount
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Although a handy option for travellers, the
airport is also the most expensive place to rent a car, especially at foreign
destinations.
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Typically, you will shell out 12-15% more than the rental
charges at any off-site location, including at or near your hotel.
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Try to wrangle a complimentary airport pick-up service
from the hotel you've booked, and then check with the concierge for rental
rates, or book a car online.
6. Accessories, perfumes and cosmetics from duty-free shops
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These items, including designer watches and sunglasses,
can be had much cheaper online.
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Often, mall or high street sales too offer a better deal.
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However, duty-free shopping continues to be attractive
when it comes to alcohol and cigarettes.
7. A gadget bought at a discount of 80% on a little-known website
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It really should not come as a surprise that you are
being ripped off.
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Online shopping promises discounts, but if just one
player offers rebates far more than its competitors, it should be a red flag.
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Other warning signs are an absence of credible contact
information for the company.
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If the website is legitimate, chances are you are being
peddled a counterfeit item.
8. A car dealer offering free insurance with the vehicle
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These offers, abounding during the festive season, are
limited in nature, say, for a year.
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From the second year onwards, you will have to renew the
policy yourself and shell out the premium.
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Moreover, the scope of such policies is restricted to the
mandatory part of motor insurance.
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If you are keen on add-ons, you need to make a separate
purchase.
9. A co-branded store credit card that gives 5% instant discount on daily
shopping
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If you look beyond the promise of immediate savings, you
will notice that such cards often carry higher interest rates than the
plain-vanilla plastic.
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Also, the discounts or accelerated reward points accrual
system that they boast are limited to a single store.