The New Year is rapidly approaching, and it’s the perfect opportunity to plan for improving your financial status in 2011. An efficient strategy to enhance your financial health is by minimizing unnecessary fees that drain your wealth and benefit someone else. Here are five types of fees you should aim to avoid in the upcoming year:
1. OVERDRAFT FEES
If you overdraw your bank account, you’ll be charged an overdraft fee. These fees can vary from $15 to over $39, based on your bank’s regulations. Avoid these costs by monitoring your spending and ensuring you are aware of your account balance. Strive to confine your spending within your available resources.
2. MONTHLY SERVICE FEES
Certain banks have started to apply monthly service fees, often due to failure in maintaining a minimum account balance. To dodge these, ensure your account consistently meets the required balance or explore other banking options that don’t impose a minimum balance requirement.
3. ADDITIONAL BANK FEES
With the advent of various bank fees including charges for insufficient debit card usage or for printed statements, it’s important to review your bank statements regularly to identify these charges and ways to prevent them. Consider switching to a bank account with lesser fees.
4. CREDIT CARD INTEREST FEES
Interest fees associated with maintaining a balance on your credit card can be highly damaging. This throws your money directly into someone else’s pocket. Reflect on your credit habits and be mindful of your expenses. Avoid making purchases merely for reward points, and limit your spending to what you can repay monthly, thus avoiding interest charges.
5. EARLY TERMINATION FEES
Before signing any service contract, it’s imperative to know whether any fees apply for early termination. If you have doubts about maintaining a contract for a certain duration, reconsider your decision. In some instances, the saved money from contract cancellation may exceed the cancellation fee itself. Yet, as a rule of thumb, it’s better to be as sure as possible prior to signing any contract.
What are some other fees you plan to evade in the upcoming New Year?