If you purchase any kind of electronic Christmas gift this year, you are going to be asked if you want to purchase an extended warranty.

To you the consumer, a warranty often gives you some peace of mind and the means to avoid a large repair bill if something goes wrong. This is especially true with big-ticket items such as big screen televisions, appliances and the newer electronic gadgets.

However, do you really need an extended warranty on let's say that digital camera that you just bought as a Christmas gift for your grown son or daughter?

Consumer advocates claim that for the most part, extended warranties are almost always a rip-off. But every year Americans are shelling out more and more for these extended warranties.

The consumer advocates also claim that products rarely ever break within the warranty period, and even if they do, the cost to fix it is usually about the same as what you paid for the extended warranty.

On the other hand, things do break. As products become more and more complicated, there is that old nagging suspicion in your mind that something just might go wrong as soon as you get the purchase home.

Let's face it, if you want the peace of mind, security and convenience that an extended warranty offers then spend the extra money.

If on the other you believe that paying extra for an extended warranty is a rip-off then don't buy it.

Either way you're probably going to be all right.

Now would I purchase an extended warranty on the digital camera that I just bought for my grown son or daughter? If the camera were a high-end camera, say over $500, then I would probably get the warranty. If the digital camera was under $200 dollars than I probably wouldn't. If the camera was between $200 and $500 then I would have to think about it some but I probably wouldn't purchase the extended warranty.

And something to always remember, the stores have a big incentive to push extended warranties. Over $1.6 billion will be spent over the holidays on extended warranties just to add a little peace of mind to the Christmas gifts you just bought.