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Think twice when dealing with daily deals

How can you go wrong saving money?
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Apparently, nearly one out of every two of us is hooked on daily deals like Groupon. Some 47 percent of consumers subscribe to at least one daily deal website, according to Local Offer Network's recent study, "The Daily Deal Phenomenon: A Year in Review."

Revenue growth for such sites as Groupon and LivingSocial shot up north of 40 percent between 2010 and 2011, according to a new report from BIA/Kelsey, a media research and consulting firm. While new daily deal sites are springing up seemingly every day, problems arise on the consumer's end of the deal when needless overspending is masked as saving money.

"There is an emerging group of shoppers who are addicted to buying because of the promise of a good deal, whether they can afford it or not. But it's not worth it to go broke saving money," says family finance expert Ellie Kay.

It sounds like a win-win situation when you see the deal, but you can go wrong spending on daily deals to save.


 

 

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