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Credit Card Fees: They're Breaking the Bank

Debbie Wilson
LoanBiz Columnist

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Article Rating , 4 out of 5 based on 1 votes

Once upon a time, fees used to be levied by banks to discourage bad behavior. But today, these fees have become a profit center for the banking industry and credit card companies. And since consumers have not revolted, companies are getting bolder, raising credit card and bank fees beyond compare. As a result, Americans are paying billions of dollars each year in fees they are unable to decipher.

Outrageous Credit Card Fees

According to CardData, credit card companies have increased fees and penalties for all sorts of payment deadlines. If you miss your payment deadline, you might pay an average of 16-18% in interest and late fees. Many credit card issuers are charging these fees within hours of late payments. And it doesn't stop there. The confusing array of fees extends to balance transfers, phone payments, overseas credit card use, and Internet banking.

Avoid Credit Card and Bank Fees

It may seem obvious, but for many Americans, late credit card fees continue to happen month after month. To avoid most banking fees, pay your credit card bill on time. Don't bounce checks. Consider paying electronically so the money is transferred immediately. Doing this gives you a more realistic look at your expenses and account balances. Additionally, it pays to ask. Some banks or credit card companies will waive monthly service charges or penalties if you're a good customer.

Don't let credit card fees rule your world. You can break the cycle and break the fees. Know when to say "enough is enough". Then, find a bank and credit card company that offers accounts and cards that fit your lifestyle and payment schedule. Let hidden fees become a thing of the past.

Sources:
CardData
National Foundation for Credit Counseling


About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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