Many of us don't realize how quickly common fees could add up and the significant damage it can make to your finances in the long run. There are many different fees and penalties that can be avoided and it's up to you to understand how.
Here are some of the most common fees that should be avoided:
Late fees If you're paying late fees because you don't have the money to pay your bills on time then you should start to understand your finances and budget wisely. Cut down on unnecessary expenses that will allow you to have that extra cushion you need to pay your bills on time. If you're simply a forgetful person, write down your due dates in an organizer, pay your bills as soon as you get them or schedule your online payments automatically for a specific date.
ATM charges These charges occur when you withdraw money from a bank machine that is not owned by your bank. These fees can range from $1 to $3. These charges can also be charged twice. Once as a convenience fee for the bank machine owner and once from your bank. Once transaction can cost you upwards of $5 and if you're doing this too often during the course of a month, it can cost you big at the end of each month.
Reward cards Unless you're a business owner, you may not get the benefit of the rewards gold and platinum cards give. These cards have high annual fees that can cost you up to $150 so unless you're a big spender, these cards should be avoided. If it's taking you over 3 years to earn almost enough to fly then you may have already paid a big amount of your reward in annual fees.
Credit report Ontario Law states that you have a right to get a free credit report once every year so make sure that you're not charged by a credit reporting agency when you need it for a mortgage or a home equity loan.