10 Fees You Shouldn't Be Paying
Awareness and planning will help you avoid these
unnecessary charges.
By Cameron Huddleston, Kiplinger.com
It's easy to overlook fees when they're just a couple of bucks. But even the
small ones quickly add up. However, most of the time you can avoid being
nickel and dimed. With the help of BillShrink.com – a free cost-savings site
– we created a list of ten fees you can escape.
1. Free checking fee. Some banks are starting to attach more strings to
their free checking accounts. That is, you'll have to pay a monthly fee
unless you meet certain criteria (see Free Checking Is Tougher to Find).
However, several online banks and community banks and some major
banks still offer free checking without all the requirements to qualify.
2. Balance-transfer fee. Some credit-card companies now charge up to
5% for balance transfers. So before you transfer a balance from one card
to another with a low or 0% introductory rate, you should do the math to
see if the amount of interest payments that you save with the introductory
offer outweighs the balance-transfer fee that has to be paid immediately.
See Are Balance Transfers Still a Good Deal? You might find that you'll
get a better deal by negotiating down your rate on your current card.
3. Retailer credit-card fees. The new credit-card rules make it harder for
retailers to extend credit on the spot. However, that doesn't mean you'll no
longer hear "Do you want to save 10% on your purchase today by opening
a card account with us?" The discount is tempting, but these cards usually
come with higher interest rates than traditional credit cards. If you don't
pay your bill in full, that discount you got will quickly be wiped out by the
high rate you'll be paying on your balance.
4. Credit-card late fees. Although the new credit-card rules prohibit card
issuers from charging $25 for a first-time late payment, issuers can charge
$35 if you're late a second time within six months. To avoid these fees,
sign up for payment alerts from your credit-card company. You'll receive
an e-mail or text message several days before your bill is due.
5. Rewards card annual fees. An increasing number of rewards cards
charge an annual fee. However, there are cards with great perks and no
fees. BillShrink.com recommends Capital One No Hassle Miles Rewards,
Chase Sapphire Card, and Pen Fed Visa Platinum Cashback Rewards.
6. Directory assistance fees. Calling 411 can cost $1.25 or more. You
can get free directory assistance by calling 1-GOOG-411 or
800-FREE-411.
7. Baggage fees. Unless you fly on Southwest or JetBlue, you'll have to
pay a fee to check even one bag. If you're flying with any of the other
airlines and have to check a few bags, you might find it's cheaper to send
your luggage to your destination by FedEx, UPS or U.S. Postal Service
Ground Shipping. See Save Money by Shipping Your Luggage.
8. Airline booking fees. Don't even think about picking up the phone to
book a flight – unless you don't mind spending $15 or more for the
privilege of talking to a booking agent. Book your flights online to avoid
this fee.
9. Cell phone early termination fees. You can face a termination fee of
up to $200 if you cancel your service before your contract is up. You can
avoid these fees by signing up for prepaid service (and save money
because these plans usually are cheaper).
10. Roaming fees. Make sure that you understand the way your
cell-phone roaming and international charges work. According to
BillShrink.com, some roaming rates are $2.49 per minute. And, some
carriers will even charge you to access your voicemail (a charge of $4.99
for a missed call) even when you don't pick up that call while you are
roaming. If you send a video while roaming, you could be charged up to
$7.
See 10 Expenses You Don't Need for more ways to save by avoiding
unnecessary costs.(Reprinted with permission. All Contents ©2010 The
Kiplinger Washington Editors. www.kiplinger.com.)
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