ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, July 31, 1996 TAG: 9607310019
SECTION: BUSINESS PAGE: B8 EDITION: METRO
COLUMN: Marketplace
SOURCE: MEGAN SCHNABEL
THE CONSUMER Literacy Consortium has published a free brochure called "66 Ways to Save Money."
It's the end of the month, and you're at the end of your paycheck.
If you wonder where all your money has gone, you might want to take a look at a list of consumer spending tips from the Consumer Literacy Consortium, a Washington, D.C. group representing private, public and nonprofit groups and coordinated by the Consumer Federation of America.
CLC's membership includes the Federal Trade Commission, the Food and Drug Administration, AT&T, American Association of Retired Persons and American Insurance Association.
Here's a sample of the CLC's tips:
Don't assume your insurance agent will "shop the market" to find you the best auto or homeowner policy.
Most insurance agents sell policies for just one insurance company, or a small group of companies. If you want to be assured of getting the best deal, shop around.
The Bureau of Insurance, part of the Virginia State Corporation Commission, offers free guides to buying both homeowner and auto insurance, and each booklet includes premium comparisons for some of the largest insurers doing business in the state. For a copy, write to the Bureau of Insurance/SCC, P.O. Box 1197, Richmond, 23218.
Watch your credit card expenses.
According to Ruth Susswein, executive director of the consumer interest group Bankcard Holders of America, fewer than half of all credit card customers still pay annual fees. The bigger problem these days, she said, is high interest rates. Rates range from 4.9 percent to almost 33 percent with the average at 18 percent, she said.
If you're a valuable customer - meaning you keep a monthly balance and pay on time - you may be able simply to call your credit card's 800-number and negotiate a lower rate.
Otherwise, shop around. Chances are, your mailbox has been deluged with credit card offers, all promising unbelievably low interest rates, which usually are temporary come-ons. The cards with the lowest rates tend to have annual fees attached, Susswein said. But if you tend to keep a monthly balance, you might be better off paying a reasonable fee than racking up hundreds of dollars in higher interest charges.
If you decide to switch credit cards, look for one that offers a low introductory rate for at least a year, she said. That'll give you time to pay off a good share of your balance.
Bankcard Holders has compiled a list of about four dozen of the lowest-rate cards available. For a copy, send $4 to: Bankcard Holders of America, 524 Branch Drive, Salem 24153.
Always buy energy-efficient appliances.
Federal law requires manufacturers to post energy guide labels on major appliances. But that doesn't mean we consumers care.
"Very few people really pay any attention to them at all," said Chapman McGuire, owner of Tarpley's & Mac's Appliances and TV in Salem.
The sticker tells you the basic cost of operating that appliance for a year, at different electricity rates. The costs don't vary all that much from manufacturer to manufacturer on comparable models, McGuire said. You may find one brand costs from $2 to $5 a year less to operate, he said. Smaller models, of course, usually have lower operating costs.
Comparing unit prices on supermarket shelves.
You rarely even have to do the math yourself anymore. Most grocery stores include the unit price on the UPC sticker on the shelf beneath the display of products.
A word of warning: Don't automatically assume that larger packages are more economical. An alert reader called recently to warn other consumers of his discovery: Some grocery stores actually charge more, per ounce of fruit juice or bar of soap or pound of pasta, for larger packages.
For a free copy of CLC's brochure of money-saving tips, send a self-addressed, stamped business-size envelope to: "66 Ways to Save Money," P.O. Box 12099, Washington, D.C. 20005-0999.
LENGTH: Medium: 98 lines ILLUSTRATION: GRAPHIC: 10 Big Consumer Purchase Mistakesby CNB1. Leasing rather than buying a car because you believe leasing
costs less.
2. Not carefully searching for a competent, honest auto
mechanic.
3. Assuming your insurance agent will "shop the market" to find
you the best auto or homeowner policy.
4. Not holding a cash-value life insurance policy for at least 15
years.
5. Not maintaining the minimum balance required to avoid checking
fees.
6. Holding too many credit cards.
7. Taking out a 30-year mortgage loan, rather than a 15-year
loan, just because the monthly payments are lower.
8. Paying in full for a home improvement before the work has been
completed to your satisfaction.
9. Purchasing new appliances that are not energy efficient.
10. Not comparing unit prices found on supermarket shelves.
Source: Consumer Literacy Consortium color STAFF