How To Avoid Hidden Fees
Learn To Save More Of Your Money
Well, this will get under your skin: We pay out about $216 billion in financial fees every year, which comes out to about $750/person in miscellaneous junk fees. Out of that figure, an estimated $31 billion is credit card fees. There are so many hidden fees out there consumers don't even know they exist. Here are some things to ponder so they don't get you coming and going:
· Late fees: The minute you're late on a payment on your credit card, you're going to get stuck with a fee that might range from $15 to $40. That could be enough to push you to the top of your credit limit, and the credit card companies may see that as an excuse to jack your interest rate as high as 24 to 28 percent. Not only that, but they put a due time on top of the due date! So make sure that your payment goes in the mail in plenty of time, or pay online if you possibly can. Better still, call the company and arrange a due date that works for you (maybe the day after payday).
· Getting charged for not using your card: Ridiculous, isn't it? You can freeze that card in a bag of water in your freezer and never touch it, but still get charged as much as $15 a month. The solution? Even if you don't like using the card, just use it once a month to buy, say, a six-pack of cola.
· ATM fees: You can get charged as much as $2 to $3 for using your ATM card at another bank's ATM, along with whatever your bank charges. It may be inconvenient, but whenever possible, seek out an ATM that belongs to your bank and make that your regular "go-to" machine on your daily rounds.
· Messaging fees on your cell phone: This isn't as much of a problem as it used to be. Some carriers still charge as much as a nickel or dime per text message on their plans. The number of prepaid and monthly/no-contract carriers has made cell phone use cheaper and cheaper. If you're still in a plan that charges by the message, switch carriers, or at least switch when your contract runs out. Shop around, there are carriers now that offer unlimited text, talk and web access for flat rates of $70 a month or less.
· High-speed Internet connection: Surprise! There's now a gimmick called a Supplier Federal Universal Service Fund (FUSF) that some providers are tacking onto broadband bills. By law, this is a skim that is earmarked for the costs of Internet access at public places like libraries, and to fund Internet availability to rural areas. The Feds do allow providers to pass this cost on to consumers, but the key word there is "allow", NOT "require". Customers then just write it off as "some sort of federal tax" when they see the line item on their bills. if you don't like it, consider getting an aircard for your computer. Chances are that's the way everyone is going to be heading in the future anyway.
