Caveat Emptor! You Ca N Lose A Bundle In Hidden Fees
You may have heard the term caveat emptor (buyer beware). Whenever you are making a purchase or using any kind of service, you must be careful, read all the fine print and be cognizant of exactly what charges you may encounter. This is especially true with financial tools. It is important to remember that companies and financial institutions that provide credit cards, overdraft protection, payday loans, direct deposit advance services and so on are not doing it to help you. They are doing it to make money. In this article, we will discuss some of the fees you must look out for when making use of financial tools. Read on to learn more.
Credit card companies are notorious for charging hefty fees, both blatant and hidden. If you plan to use a credit card, it is important that you have the ability to make timely payments and that you keep close track of your spending. Late payments can result in fees of $40 or more. Fees for going over limit are astronomical, and they can snowball quickly so that your payments simply skyrocket out of control When using a credit card, it is best to exercise self control and use the card only for carefully planned, large purchases that you can pay off within one or two billing cycles. Do not use credit cards for daily expenses. It is too easy to lose track, and who wants to pay interest on a cup of coffee?
One of the main ways banks make money is by charging fees. Many banks advertise free checking, but remember that you will never get something for nothing. Everything costs money, and free checking is no exception. Pay close attention to overdraft fees, fees for check orders, fees for having less money in the bank than the bank requires and more. Keep a close eye on your account online and be sure to write down every penny you spend so that you will not accidentally become overdrawn. Bank fees can add up very quickly and cause you a great deal of trouble in bounced checks, third party fees and spiraling bank fees.
The government is also notorious for charging fees. If you have a payment arrangement for your federal taxes or your property taxes, be sure to honor it. The best thing is to pay your taxes in full before they are due. All taxation entities charge outrageous amounts in fees, interest and penalties. You could easily end up paying twice what you owe even if you make a payment arrangement and adhere to it. Of course, if you owe money to the government, they have the ability to take it right out of your checking account, seize your property and generally ruin your life, so it is very important that you pay them in a timely manner. Establish a special account to set aside money to pay your taxes. An add on certificate of deposit will pay you a good return. A money market account is a good option if you can keep yourself from accessing it until your taxes are due.
Services you regularly use such as gas, electricity, landline, cell phone, cable company, insurance company and more may charge hefty late payment fees. Be sure to check the fine print when you sign a contract and know exactly what you are signing up for. If you are able to pay these bills the moment you receive them or have them charged directly to your checking account without overdrawing your balance, do so. In this way, you can completely avoid fees. If you must juggle bills to make ends meet, be aware of the fees and prioritize your payments to reduce or eliminate as many as possible. Avoid having a service turned off or coverage discontinued because fees to resume may be very costly.
By being very aware of exactly what you are charged by the government or any financial institution or other service you use, you can avoid paying both blatant and hidden fees. Follow the tips presented here to be a smart and savvy consumer.
