Credit Card Fees: They're Breaking the Bank
Debbie WilsonLoanBiz Columnist
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.
