Don't Let the Banks Eat You Alive!

Now that you've taken a moment to consider your daily spending habits (you have done your homework, right?) we are ready for our next tip. Let's move on to the big guys -- financial institutions. 

Many people use check cashing companies or just keep cash on hand because they don't trust the banks, they don't understand the fee structures and feel that they are being ripped off.

Here are a few tips to help you avoid falling into common financial institution fees.

Tip 2: Don’t Let Financial Institutions Charge You For Their Services

•      Banking fees can seem trivial, but these expenses add up over time.

•      If you cannot avoid a monthly fee at your bank, get a free checking account elsewhere. There's a great article called The Best Checking Account in 2016 that you can use to see which bank best suits your needs.

•      Overdraft protection is really the only service you should be paying for if your bank does not offer free overdraft protection. 

Avoiding Payment Processing Fees

•         Use online banking to schedule automated payments directly from your bank account.

•         Always compare your payment options and ask about fees. It's important to understand your rights and understand what constitutes predatory lending. You can learn more in this post called Identifying Traps in Predatory Lending.

Avoiding Credit Card Interest and Late Fees

•      If you feel that your credit cards are costing you too much, contact the company and ask them to reduce your fees, or shop around for a better option.

•      Transferring your balance to a different card can be a good option if you qualify for a lower APR or for a card that doesn’t compound your interest on a daily basis.

Use these strategies to reduce the amount of money you spend on credit card fees

•         Always pay more than the minimum monthly payment.

•         The best method to avoid interest is to pay your entire balance each month.

•         Schedule automated monthly payments to avoid late fees.

If you keep these points in mind you'll be able to avoid paying extra fees. Hey, you may even want to pocket the fees that you are no longer paying and add them to your savings account!

Tomorrow we'll explore the world of smart shopping for yourself and your family.

“Beware of small expenses; a small leak will sink a great ship.”  - Benjamin Franklin