6 Fees You Should Never Pay

You might overlook the fees you pay because it doesn’t seem like a lot of money, but multiple fees can add up. Avoiding fees is easier than you may think.

Late fees

Late fees are the penalty imposed when you pay after the due date. Some late fees are more expensive than others. Your landlord, for example, may charge a hefty percentage of your rent as a late fee. Late fees can be avoided by simply making your payment on time. You can even schedule your payments to be made automatically so that late fees are never an issue.

Overdraft fees

You’ll be hit with an overdraft fee whenever your bank extends the courtesy of paying your overdraft transactions. You avoid overdrafts by opt-outing of having overdraft (debit card) transactions processed. Paying close attention to your bank balance and your spending and keeping a buffer in your checking account can also help you avoid paying overdraft fees.

Fees for subscriptions you don’t use

Companies bait you into paying a monthly subscription by getting you to first sign up for a free trial. Many people don’t bother cancelling after the trial and some don’t realize they’ll be automatically charged after the trial period ends. Sign up for a few of these subscriptions and you could easily spend upwards of $50 each month on services you’re not using. Take a few hours to review your billing statements to track down these fees and call the companies to cancel your subscription. Just a small time investment will save hundreds of dollars a year.

Checking account fees

Many checking accounts assess a monthly maintenance fee on accounts. Fortunately, many will also waive the fee if you meet certain criteria. For example, you may need to have a direct deposit set up, maintain a minimum balance, or use another bank product. If you’re paying a monthly maintenance fee, check with your bank to see how you can have the fee waived or switch to another account that will allow you to avoid the fee.

ATM fees

ATM fees are small enough that you may pay them without thinking twice about it. Consider, however, that ATMs are charging you to access your money. To make it worse, sometimes the ATM owner and your bank both charge you a fee. Just a little planning can help you avoid ATM fees. For example, you may have to grab cash in advance of when you need it. If your bank isn’t available, you can use your debit card in a store and choose the cash back option. Ask for the cash back limit before the transaction to confirm that you’ll be able to get back what you need.

Credit card convenience fees

Some companies allow you to make payments with your credit card, but they may charge a percentage of the transaction as a convenience fee. You can avoid this convenience fee by using another payment method – paying with your checking account information or mailing a check.

Most fees are avoidable, but it’s up to you to be sure you’re not paying fees unnecessarily.