Say No To Extended Warranties

Most of you have known for years not to fall for the ol’ “extended warranty” pitch that most retail chains try to sell you but did you know that Consumer Reports also advises against extended warranties? Something to think about and pass along to your not-so-tech-savvy friends during the holiday shopping season.

This holiday season, shoppers are expected to spend a whopping $1.6 billion on extended warranties for laptops, flat-screen TVs, other electronics, and appliances. And almost all of it will be money down the drain. Retailers are pushing hard to get you to buy extended warranties, or service plans, because they're cash cows. Stores keep 50 percent or more of what they charge for warranties. That's more than they can make selling actual products.