Too many things in life are expensive. Being needlessly nickel-and-dimed makes it even worse. Here are 11 dumb fees you should avoid at all costs.
Late Fees
It’s easy to be forgetful. When it comes to your bills, that inattentiveness can cost you dearly. Take your credit card, for example. Being late on a payment can result in a fee of $30, or more.
To avoid this, put your bills on auto-pay. If that makes you uncomfortable, create an alert on your calendar several days before it’s due each month. This gives a good reminder without hurting your credit.
Credit Reports
Checking your credit report annually is a terrific way to see where you stand. However, you should never pay to access your report.
Instead of paying $20, or more, go to AnnualCreditReport.com to access your Equifax, Experian, or TransUnion reports. You can request one from all three agencies each year. Some banks and credit card companies also offer them for free.
ATM Fees
An ATM is a great option to withdraw cash in a pinch. Unfortunately, banks love to charge fees to use an ATM. Paying money to access your cash is a terrible idea.
If you often need to withdraw cash, find a bank that waives these fees. There are many that do this for customers. Just make sure you use an in-network ATM.
Hotel Wi-Fi Fees
In 2023 there’s no sense to pay a fee to access Wi-Fi at a hotel, or any business for that matter. If the hotel you’re at charges a fee, see if they offer complimentary Wi-Fi by joining their loyalty program.
Don’t overlook your phone company either. If you have a mobile hotspot, that could help you avoid this fee.
Many Car Dealership Fees
Car dealerships love to charge fees. Delivery fees, documentation fees, inspection fees, and more can add to the bloated cost of a new automobile.
Dealerships are legally required charge some fees. That doesn’t mean you can’t negotiate them down. Ask what they can do, including knocking the fee amount off the overall price of the car to save some cash.
Credit Card Cash Advance Fees
Emergencies occur, and a credit card may seem like a justifiable lifeboat. Taking a cash advance from your credit card can be costly. Not only do you pay a fee of at least five percent of the amount taken, you also pay interest immediately on it.
Opt for withdrawing money from your savings account as a solution. If you don’t need the funds immediately, there are legitimate ways to make money in one hour that can provide a helpful solution.
Paper Statement Fees
Banks and credit card companies view paper statements as a needless cost. Not only do they want to go green, they want to save money.
Most institutions charge at least $2 for the convenience of a paper statement. If you can, opt for an email option and save the cash.
Cable Device Fees
Cable and satellite companies love to charge fees. One of the worst offenders is the set top box fee, that is usually $10 to $15 a month, per TV.
You don’t pay that fee with streaming apps. Find a live TV streaming service that has the channels you watch and pocket the savings.
Investment Fees
Investing for retirement is something everyone should do. Unfortunately, some brokerages still love to charge maintenance fees. Worse yet, many mutual fund companies charge commissions to buy into a fund.
These fees may not seem costly, but they add up over time. They also ensure less of your money is working for you. There are plenty of reputable brokerages that charge minimal to no fees. Select one you like and put more of your money to work.
Overdraft Fees
Overdraft protection seems like a great way to safeguard against bouncing a check. That protection comes at a cost. You don’t want to pay $35, or more, to cover an overdraft of a dollar or two.
Opt out of this coverage and ask if you can link your savings account to your checking. If not possible, the worst case scenario is a transaction is denied when you use your debit card.
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