Moneywise staff reveal costly financial blunders from duplicate subscriptions to uninvested inheritances
From a $4,000 Amazon Prime error to $10,000 in post-college credit card debt, staff members share the lessons learned from avoidable financial errors.
Moneywise editors and reporters have disclosed a series of significant personal financial errors, ranging from duplicate subscription costs and uninvested inheritances to high-interest credit card debt. The disclosures highlight common pitfalls such as overlooking free tax filing options, ignoring credit monitoring statements, and compromising on housing criteria during the early pandemic. The report is sourced from Moneywise.com and published via Yahoo Finance.
One staff member unknowingly paid for three duplicate Amazon Prime memberships for seven years, costing nearly $4,000, before discovering the error via a RocketMoney advertisement. The individual had three separate accounts tied to different email addresses, each charging approximately $15 monthly. Although Amazon was not obligated to refund the charges as the memberships were legitimate, the company refunded approximately $1,200 after the staff member explained the situation.
Another reporter compromised on first-home purchase criteria during the early-COVID market, resulting in higher maintenance fees and $300 monthly parking costs. The individual had initially set strict criteria, including outdoor space and maintenance fees under $500 per month, but settled for a condo that failed to meet these standards due to market fervour. The compromises left the reporter feeling financially behind, with ongoing costs for parking and escalated maintenance fees adding to the burden.
Staff members also noted that users of TurboTax and H&R Block often pay for paid tiers despite free options, with only 37% and 52% of users respectively filing for free. The report recommends alternatives such as FreeTaxUSA and Cash App Taxes, which offer free federal filing, to avoid the $85 to $110 fees often incurred with industry-leading companies.
A staff member was charged approximately $1,000 over several years for an unauthorized TransUnion credit-monitoring service after ignoring statements. The charge began with a $20 fee for a service signed up for when the individual sought a free credit score look. The report notes historical regulatory actions, including FTC fines against Experian in 2005 and 2007, and CFPB actions against TransUnion and Equifax in 2017.
One editor kept an inheritance in a bank account in their early 20s rather than investing, later regretting the missed growth potential. The individual, intimidated by the stock market, chose to spend the money on college tuition and other expenses. The report also highlights a staff member who accumulated nearly $10,000 in credit card debt after college, funding living expenses and rent, before consolidating and paying it off.
