The economic crisis around the world is more severe now than we have ever witnessed. As the fiscal situation grows from these difficult times, there are banks who competitor with each other on the amount of fees, penalties and prices charged. But it's time to play the bankers off you.
Here are some tips to help you believe you are not getting your money in the most economic way. The most obvious fee is to put your money into a cash machine, but what other fee is there?
Always on all cards : Avoid using your card especially for overseas purchase. This is because there are varying fees when you transfer money to another bank. The fees or penalties always may seem minimal or reasonable at first glance but when compared to the actual costs incurred, it'll seem like you're getting a bargain here and that you have been ripped off. This applies as well to your standard transaction fees when you withdraw your cash from a cash machine.
Minimum Payment : It's a common practice for the banks to impose this fee when you are late in the payment of your fee. The penalty is usually less than one percent of your balance with the bank. Most banks, however, impose this fee only if you are late by even one cent. Regardless of the lending rate announced by the central banks, minimum payments are always variable from one bank to another and therefore not indexed with inflation. You may feel like you are getting a personal loan when in reality, you are paying 100% of the interest.
Overdraft fees : If you feel like some banks really charge heavy fees even if you are regularly overdrawn, then they are not on the level. Others, however, Line of credits do not charge you with overdraft fees. Equally as severe as the fee for exceeding an overdraft is the Line of Credit's monthly payment charge. This process is not easy going. In fact, you only pay as much as the balance in your Line of Credit until the line of credit runs out, then you must pay in full to pay new fees.
Minimum : Your balance with the bank must be below a predetermined amount. Trying to plan your expenditures to fit your available balance may cost you more though. For example, if you have the standard savings account, you may need to have a minimum savings of $100 if your monthly allocated amount is $120.
Reload fees : You will find yourself in a good deal of trouble if you habitually reload (place money in your line of credit). A reload is a fee typically charged for loading a positive amount (e.g., $3.00) throughout one month. This can hurt, especially since such fees are not thought-out and planned. If you regularly reload, then you are in for a fight.
The average was $1.48 per $100. Those above $100 are usually charged in one go, although some will periodically roll over balances from one month to the next.
Paying Off Other Debts on Credit, on the Go, With the Latest Bank Fees
Now it's not uncommon to find credit cards without protection in certain categories. For example, you might have a balance of $200. Of course, the banks would like the balance to go to zero, so they would charge you anything between $2.00 up to $150. So if you popped $25 on the card, the bank charges the $24 as additional fees-even if you don't have the $25 on the card. Some banks will even charge you if you maintain a balance above the credit limit on the card.
With overspending, there have been plenty of cases where people have entered themselves into bankruptcy. To keep it from happening to you, make sure that you don't breach the credit limits. If you do and the banks find out, it will also go against your credit score, and you lose! Sometimes, the situation is unavoidable. The only way to eliminate situations like these is to think it through. When you think that you're spending money beyond your means and budgets, get a hold of things and control yourself. The best way to handle these expenditures is to know the numbers.
Tally up your credit card bills, and even your utility bills like electricity or water. In fact, any expenses that you can access immediately, alone, should be included. Make a spreadsheet, list the expenses and analyze if they're within your means. Is there any possibility of increasing your income or cutting down on expenses?
You may be surprised that your income doesn't have the robots taking charge, so to speak. Even if it's just twenty dollars a week for food, going to the movies and plays, you might be spending over five hundred dollars a month. Of course, it's only your mind that wouldn't get caught up. We must know what we're capable of, or else we will find ourselves in deeper troubles.