In this amazing world today, fees are widespread. As companies struggle to keep prices low and compete, they often survive through hidden fees.
What does this mean for you?? Diligence is the word of the day. There is no more sitting back and assuming “what you see is what you get.”
Some samples of common fees to watch out for:
1. Credit cards. These are truly the fee monsters. Late payment fees, overbalance fees, cash withdrawal fees are common. What also might surprise you are the fees to use your money in a foreign country or balance transfer fees.
2. Banks. Most of us are aware of bank fees, as we continuously complain about them. Gone are the days of maintenance fees, instead we are nickel and dimed to death. Some banks will even charge you a fee to talk to a teller or get a copy of your statement.
3. Mortgages. Buying a house is costly enough; don’t also pay any extra fees. Different loans and different brokers have different fee structures.
4. Investment accounts. Be careful of the stockbroker who claims to manage your money effectively. Every little stock sale is also commission and money in his pocket. Why pay someone to gamble your money? Mutual funds also have largely varying fee structures, even for retirement 401K accounts.
5. Handling fees. Many companies make huge profits in shipping and handling fees. While in some cases you can’t avoid them when making a purchase, you should be aware of them for budgeting and price comparisons.
How do you fight back?? The key is to be a smart consumer. Read the fine print; ask the right questions. While these fees are often hidden, they are not invisible. In order to be effective with your money, you need to be aware of where it is going.
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