- Friday, 4 June 2010Consumers could be wasting thousands of pounds on useless financial products, which could make
debt management harder to stay on top of.
According to Which? Money Quarterly, there are several products that are not needed by most consumers and can lead people into financial difficulty.
One of these is mobile phone insurance. Most phone providers charge this on top of a monthly bill and the company will send the phone off for any repairs it may need.
However, Which? believes consumers can save up to a £100 a year by not taking out phone insurance, especially as most people are already covered by home insurance.
James Daley, editor-in-chief of Which? Money Quarterly, said: "Our research found that there's a bunch of financial products on the market that most people really don't need - but this doesn't stop companies from trying to sell them."
He added that consumers should not just follow what a salesman says but should speak to an independent financial adviser if they need help.
Store cards were also criticised by the 'consumer champion' as an unnecessary product as they have high interest rates. Interest could amount to as much as £300 a year.
In April it was found that demand for store cards had decreased by seven per cent in 2009.
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