Stop wasting money on these unnecessary charges.
Paying for necessities such as rent and health insurance aren’t exactly glamorous ways to spend your hard-earned dollars, but they are essential to everyday living. On the other hand, there are plenty of items, perks and services you may spend money on, but get no real value from. Oftentimes, these minimal and irksome charges may not seem to amount to much, but collectively add up quickly. With that in mind, here are 12 annoying fees to look out for, and tips for eliminating them from your budget, so you can put your dollars where they truly matter.
Extra data fees
A 2015 survey on smartphone use in the U.S. from the Pew Research Center found that 37 percent of mobile users max out their monthly data occasionally, while 15 percent do so frequently. Many mobile carriers will slow down data speed when customers exceed their monthly allotment, enticing many users to purchase extra data. Verizon, for example, offers an optional 1 gigabyte of data for $10 for when users meet their data limits for the billing cycle, while T-Mobile offers on-demand data passes, such as a one-week pass with 1 gigabyte of data for $10. Use free tracking apps like My Data Manager to be more mindful of wasteful data use. Also consider turning off push notifications to reduce your data usage.
Bank fees
A 2017 Bank Fee Finder Summary Report released by Chime Bank, a mobile bank that helps members avoid fees and automate their finances, found that U.S. consumers are currently paying $329 in fees annually for services such as checking account maintenance, bounced checks, out-of-network ATM use and overdraft charges. If you tend to rack up bank fees, consider moving accounts to a local credit union or online bank. “Most online-only banks waive cash withdrawal fees so you can use almost any ATM and the bank will reimburse you at the end of the month,” says Kristin Wong, author of “Get Money: Live the Life You Want, Not Just the Life You Can Afford.” You may even be able to negotiate the removal of some fees. According to Wong, “If you incur a bank fee like an overdraft fee, you can often get this waived.”
Airline fees
If you thought checked baggage fees were a pain, think again. These days, airlines tack on extra charges for basic travel amenities, such as carry-on bags, seat selection, priority check-in and even boarding passes. You may not realize just how much these costs that were once complimentary can add to your trip cost. The 2017 CarTrawler Yearbook of Ancillary Revenue report by IdeaWorksCompany, a consulting firm, found that the top 10 airlines have raked in more than $28 billion from such extra charges, known as ancillary fees. A la carte travel fees vary widely between airlines, making it tricky to compare the ticket prices between carriers. If you travel often, consider opening a cobranded airline credit card, which comes with perks like free checked bags, complimentary upgrades, priority boarding and more.
Gratuities
Tipping is standard practice in the service industry, but you could end up throwing away money by leaving double the gratuity if you don’t scrutinize the bill. “Be mindful of service and gratuity charges already added to a bill,” says Erin Lowry, founder of TheBrokeMillennial.com, a blog dedicated to helping millennials manage their money, and author of “Broke Millennial: Stop Scraping By and Get Your Financial Life Together.” According to Lowry, “This usually happens with room service at a hotel or dining out with parties of six or more. You may look quickly at the total and add an extra 20 percent without realizing you’ve actually already been charged a gratuity fee.”
Restocking fees
Many retailers offer flexible return policies, but that doesn’t mean you’re off the hook if your purchase is unsatisfactory. Some stores charge a restocking fee at 15 to 20 percent of the item’s purchase price. To dodge this fee, read the return policy and hold onto the original packaging. If you are truly displeased with the product’s quality or function, ask a store manager to waive this fee. More importantly, resist buying anything on impulse. Consider every potential purchase carefully and compare return policies across multiple retailers so you don’t get stuck paying a hefty extra charge.
Foreign transaction fees
Paying for goods and services while overseas is often more expensive than anticipated due to foreign transaction fees. Many credit card companies tack on an additional charge for each transaction that involves a foreign bank. “Every time you swipe a credit or debit card in a foreign country, you might be paying as much as an astronomical 3 percent, but you don’t have to,” says Paula Pant, founder of AffordAnything.com, a personal finance blog. “There are plenty of credit cards that carry no foreign transaction fees, which could save you hundreds as you travel.”
Currency conversion fees
One way around your credit card’s foreign transaction fee is using actual money, but keep in mind that there’s a fee for swapping U.S. dollars into local currency. “Exchanging bills at a counter is typically more expensive than withdrawing foreign money from an ATM once you’ve arrived at your destination,” Pant says. “Choose ATM withdrawals over currency exchange counters as much as possible, especially if you’re using a bank with no ATM fees and no foreign transaction fees,” she adds. “If you absolutely have to exchange currency, don’t use the counters at the airport, as these will carry the worst rates. Make the exchange at a bank.”
Reward redemption fees
“Some companies, especially some airlines, will actually charge consumers to redeem points they have earned,” says Bobbi Rebell, certified financial planner and host of the Financial Grownup podcast. “There are ways to get around it, but it often involves things like booking a flight six months in advance, which isn’t always an option.” Rebell suggests reading the fine print when signing up for a credit card that offers a reward program to understand the terms associated with redeeming your points or miles and comparing such details between companies before signing up. “No one wants to read the fine print, but if you want to get what you have earned, put it on your reading list,” she says.
Late payment fees
Paying bills past the due date is a quick way to waste money. This bad habit can negatively impact your credit score if it’s reported to the credit bureaus. Stay on top of pending bills with the help of apps like Mint Bills and BillTracker, which track your various payment details and provide reminders so you don’t get slapped with late fees. Automating payments through your checking account or credit card is another way to make your life easier. Just make sure to review bills and monthly statements for potential errors or fraudulent charges.
Online shipping fees
Online shopping makes comparing prices and finding enticing deals a breeze. However, those savings are diluted if you end up paying for shipping costs. Not only is it important to look for online stores that offer free shipping minimums or free delivery coupons, but you must also review the return policy. Though the initial shipping may not cost anything, you could end up dishing out an extra $5 to $10 to return something that you didn’t like. To avoid these fees, shop with an online retailer that offers free return shipping or allows returns at a local brick-and-mortar store. If you find yourself facing a pricey return shipping charge, call customer service to see if you can get the cost waived as a one-time courtesy.
Credit card interest fees
There are few things more frustrating than doing your best to pay down debt only to find the majority of your dollars are going toward interest. The best way to avoid this is to pay off your balance in full each month and ensure your lifestyle does not exceed your income. If you are currently carrying a revolving balance from month to month, apply as much money as possible to your card payment every month. At the very least, try to pay double or triple the minimum due to pay down the balance faster and save more on interest. Stefanie O’Connell, millennial money expert at StefanieOconnell.com recommends paying off your balance once a week. This reduces your risk of falling behind and racking up interest or late fees, she says.
Investment fees
According to the 2018 Investor Pulse survey from TD Ameritrade, only 27 percent of investors know how much they’re paying in fees on their 401(k) accounts. “Nothing frustrates me more than fees you can’t easily see, and that’s the case with many investments,” says Joe Saul-Sehy, host of the Stacking Benjamins podcast. “Many annuities, mutual funds and retirement plans cleverly disguise fees, so they’re difficult to spot. Retirement plans will sometimes feature funds with higher expenses than those sold through normal retail channels,” he says. Educate yourself by asking about the many different fees you may have to pay when you buy any investment and compare these expenses with those of a competing fund to determine whether they’re high or low, Saul-Sehy says.
More from U.S. News
8 Big Budgeting Blunders — and How to Fix Them
11 Expenses Destroying Your Budget
10 Big Ways to Boost Your Budget — Without Skimping on Your Daily Latte
12 Useless Fees Draining Your Budget originally appeared on usnews.com
