Most people make major financial expenditures without really looking at all the facts. This kind of action is downright dangerous and certainly not smart. The ultimate cost and alternative possibilities are seldom considered when someone is swept along in a desire to acquire a new home, car, business or other personal investment.

Beware of retail sales advertisements. Buying a $50 item that is on sale for $40 is not a $10 savings if you did not need the item in the first place. It is actually an unnecessary $40 expense!

A number of publications and 900 phone services list government surplus and different types of auctions at a cost of $30 to $100. Charging anything more than a few dollars for this information is an overcharge. And 900 calls are charged to you. Despite what you may think from these companies’ ads, information on public and private auctions is free and readily available.

Classified newspaper ads like the one below are often the opening pitch for what dozens of local Better Business Bureaus report as the fastest-growing category of consumer fraud:

“Financial Problems? Bad Credit? No Credit? Loans/debt consolidations to $20K. 800-XXX-XXXX.”

According to USA Today, New York City and Dallas each recently reported 4,000 complaints and inquiries; Phoenix had 6,000 and Cincinnati had 8,000. Consumers who respond are easily pre-approved for a loan. They’ll receive it once they send an application fee or processing fee of several hundred dollars. The new loan, of course, never materializes.

State consumer protection agencies are finding that loan brokers are often a slippery bunch. Following thousands of complaints, Florida swiftly shut down more than 100 companies. But they soon show up in other states under different names.

Ask questions, check the answers and consider all the facts before making that purchase or investing those hard-earned dollars. Always standing close by are those with their hands out, more than willing to take your savings from you. Don’t let it happen to you. Be prepared, investigate and then invest!

A favorite giveaway to lure you to sales presentations, such as those peddling condos, is the promise of a dream vacation to Hawaii, the Bahamas or Mexico. In fact, what you get is a vacation certificate. To take advantage of it, you must typically deal with an out-of-state travel agency by mail, not by telephone. It is difficult to get reservations and even harder to get the name of the hotel where you are supposed to stay.

Ask questions, check the answers and consider all the facts before making that purchase or investing those hard-earned dollars.

With many vacation certificates, you must get to the destination on your own, where you will get two or three nights’ lodging—probably someplace you wouldn’t want to stay. So remember, it’s not your education, social status, money or experience that counts. It’s taking the time to check it out! If a deal sounds too good to be true, you can bet that it probably is!

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Also called debt consolidation or debt pooling, budget planning or debt adjusting companies, these people end up increasing, not decreasing, your debts, once you pay their debt consolidation charges. Some of these companies charge outrageously high interest or fees that may amount to illegal loan sharking operations. If you need help paying your bills, you’re better off visiting a Consumer Credit Counseling office.

Don’t pay any company that offers to obtain a Social Security benefits statement, Social Security numbers for your children, or name change when you get married. You can get this information and service free from the Social Security Administration and only you can legally fill out the application forms, so why pay for it?

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Major credit bureaus offer services that let you check your credit file. Under some programs, you get a copy of your credit file as often as you want for $30-$50 per year and receive notification every time a creditor receives a copy of your file.

Federal law already lets you see your credit file as often as you want and at least one time each year you get a copy of your report free. You may have to pay $10 or $15 each additional time, but few people need to see their file more than once a year. Being notified whenever a creditor receives a copy of your file normally tells you something you already know—after all, it’s your credit, insurance, employment or housing application that triggers a credit request. In the meantime, many services sell the information to direct marketers, who clog your mailbox and call you during the most inconvenient times.

Some companies claim they can fix your credit, qualify you for a loan or get you a credit card. But even legitimate companies can’t do anything for you that you can’t do yourself. What they will do, however, is charge you between $250 and $2,000. A few credit repair companies have resorted to illegal practices—breaking into credit bureau computers to change a bad credit file, or stealing credit files or Social Security numbers and substituting them for the files of people with poor credit histories. You are better off avoiding them!

Many merchants encourage customers to buy extended warranties when they buy autos, appliances or electronic items. They’re profitable for the merchants, who pocket up to 40 percent of the amount before sending the rest to the insurer. Don’t buy extended warranties on appliances or electronics. While you pay for them in advance, they do not begin until the manufacturer’s warranty runs out—up to three years.

These warranties do not cover normal wear and tear or rough handling—the usual reasons repairs are needed. Certainly don’t finance an extended warranty. You then pay interest on a contract that won’t start for up to three years. Consumers rarely benefit from extended warranties. Name-brand appliances usually don’t break down during the first few years and if they do, they’re covered by the original warranty. Similarly, defective electronic equipment usually breaks within the first few months and is covered by the original warranty.