Unfortunately, bills are a part of life. However, hidden fees can really drain your finances fast. Many of these fees are avoidable, but they tend to go unnoticed and they add up over time. From convenience charges to service fees, companies love to tack on extra costs without warning or explanation. So, be on the lookout for these eight fees.
1. Late Payment Fees
Late payment fees are extremely common and they can add up fast. Even if you are just a day late, many companies will impose a fee. Sometimes, it can be really pricey, especially if you are dealing with a credit card company or utility provider. These fees are designed to penalize you, but they can be avoided completely if you set up automatic payments or, at the very least, reminders when your bills are due. Not only will it save you money, but it can also keep you from damaging your credit score over time.
2. Convenience Fees for Online Payments
Convenience fees are popping up all over the place. Honestly, in a world where most bills (and everything else) can be paid for online, this seems crazy, but they exist. I was getting nailed $10 every time I used my debit card to pay my rent rather than linking my bank account. Insane. The justification for these charges is the processing cost for the company, so they pass it to the consumer. Rather than just putting up with this, look for alternative payment methods. Bank transfers are often free.
3. Paper Statement Fees
Many companies have made the push to go paperless and have started charging to send a paper statement. Oftentimes, the fee is hidden in your monthly bill and it will go unnoticed because it’s only usually between $1 and $5. Digital statements are available for free, plus it’s more eco-friendly to go paperless.
4. Service Fees on Utilities
Utility companies are known to slip in service fees without any explanation. These charges typically cover admin costs, but the companies aren’t always transparent. Oftentimes, the fees aren’t justifiable either. While these fees might seem unavoidable, you can usually negotiate lower fees or ask about different payment options to decrease the cost. It’s worth reviewing your utility bills to see exactly what you’re paying for and if these charges can be reduced.
5. ATM Fees
Avoiding ATM fees is one of the simplest ways to keep more of your money. ATM fees can be a regular expense for individuals who withdraw cash on a regular basis. Using an out-of-network ATM can cost you up to $5 per transaction. Many people wind up paying these charges for the convenience of the ATM, but it stacks up over time. These fees can be easily avoided. The best thing to do is stick to your bank’s ATMs.
6. Maintenance Fees on Bank Accounts
Many banking institutions will charge a monthly maintenance fee for keeping an account open, especially if you aren’t meeting the minimum balance requirements. These types of fees can range from $10 to $25 per month, which can eat away at your savings. Most banks do offer ways to avoid these charges though. You can maintain a certain balance, set up direct deposit, or change the type of account that you have. Reach out to the bank to hash out your options.
7. Rental Equipment Fees for Cable and Internet
You might be paying for renting equipment from your cable and internet provider. Modems and cable boxes are often provided to you when you set up your internet, but what you don’t realize is that you are being charged $10 to $15 a month for the equipment. You can purchase your own modem or router to save money. Typically, it’ll pay for itself within a year in the money you’ll save.
8. International Transaction Fees
If you frequently travel or buy things from international retailers, you could be subjected to international transaction fees. These charges can be as high as 3% of the transaction amount and they might be applied to your account without you noticing. This can make your international shopping much more expensive than you realize. If you travel or shop internationally often, look for credit cards that offer no foreign transaction fees. This will help you keep more of your cash in your pocket.
Cut the Hidden Costs
No one wants to have their hard-earned money eaten up by hidden fees. Identifying some of these common charges can help you find ways to save. Don’t let companies take advantage of your busy schedule or lack of awareness. Make sure you are reviewing your bills and bank statements and know where your money is going. In the end, it will help you keep more of your money where it belongs, in your wallet.