Four Financial Fees to Avoid this Year

Jan

5

Four Financial Fees to Avoid this Year

It’s that time of year again when resolutions are made by many of us with good intentions.  Instead of making another claim to hit the gym more try a resolution that you will actually see through.  Get your finances back in shape!

By being a little more responsible you can get your spending under control.  A great way to start is by avoiding fees on financial products.  Minimizing the fees you pay on a daily or monthly basis can have a lasting impact on your bank account.

Fees can slowly derail your finances if you let them.  Here are some common fees that should be avoided in 2019.

Checking Fees

There are a number of potential fees that come with traditional bank accounts nowadays. 

One of the most expensive and most important fees to avoid is an overdraft fee.  Simply put an overdraft fee is a penalty charged by your financial institution for making a purchase that causes the balance in your account to drop below zero.

The average cost for one overdraft fee at the large national banks is about $35.  At most banks it’s possible to get charged multiple overdraft fees in one day, which can cost you hundreds.

Another checking fee that should be avoided at all costs is the monthly service fee.  Think of it as paying rent to access your own money.  It is usually charged when you fail to keep a certain balance in your account.

Go with a checking account that has no minimum balance requirement to avoid this fee.

Credit Card Fees

A credit card can be a great financial tool, but it doesn’t come without potential fees.  Making a late monthly payment on your card can be costly.  The average late payment fee is about $30 not to mention the negative effect a late payment can have on your credit score.

If you are thinking about transferring your balance to another credit card you could pay a 3 to 5 percent transfer fee.  This means the higher your balance is the higher the fee will be, but the good news is there are still plenty of cards without this fee.

The bottom line is make an effort to avoid fees throughout the year, and your money will remain in good shape.