In fact, 53% of those surveyed by comparison site Gocompare.com said they had bought cheap products that ended up costing them more.
Despite being caught out, 49% admitted they still look for cheap options.
The most common false economy was paying off the minimum amount on credit cards. Over time this can add up to huge amounts. For instance, paying the minimum every month on a debt of £5,000 could take 37 years.
Others on the list included holidaying without travel insurance and lying on insurance application forms to get a cheaper premium.
Women often get caught in the cheap shoe trap. While a pair of £20 boots might sound more appealing than the £100 pair in a different shop, cheap shoes can be badly made and customers end up having to buy more of them, eventually spending more than if they had simply opted for the more expensive but better-made pair in the first place.
Some survey respondents (14%) said they lost money by trying to do a job themselves instead of hiring a professional. While it might be tempting to save money with DIY, it’s important to realise that tradesmen charge for their skills. You might end up having to spend more to fix the mistakes you made doing it yourself.
Accountancy is a good example of this. Many start-ups choose to deal with their own accounts to save money but with premium fines for getting figures wrong on tax returns, it can pay to hire a professional. Simple mistakes put people out of business. Find out more about hiring an accountant by visiting our Starting a Business page.
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