Fixing Five Frivolous Fees
The other day, I got a letter from an account that I totally forgot I had. Now, it wouldn’t be horrible… if there wasn’t a $30 fee on it. Seriously?! I hate fees for inactivity. That isn’t the only time I’ve gotten charged from a financial institution for something stupid that I did. Whether it’s for overcharging my account, for making an extra transfer than what I was allowed in a month, or for talking to a person instead of the machine, the fees were just plain stupid.
Today, we’re going to look at five fees that, like me, you really shouldn’t be paying, and how to stop them from killing your bank accounts and your credit score.
Frivolous Fee: Overdraft fees on your bank account.
Solution: Don’t overdraft. Well, it’s not that simple. The government requires financial institutions to provide overdraft protection so that people’s bank accounts don’t get drained for one mistake. You need to read your financial institution’s regulations on this; for example, mine counts them as transfers, and once your transfers are up for the month, you will start getting charged fees.
Frivolous Fee: Airport luggage fees.
Solution: Two ways to eliminate these. First, on a short trip, pack a carryon only. If you’re not in the front seat, you can have a carryon and a purse or laptop bag. I took a 4 day trip to Boston last summer and didn’t have to pay a penny. Second, if you have to have luggage, check your luggage online instead of at the airport, because many airlines will now charge you for paying your fees at the airport. A fee to pay a fee? Sweet! (Not).
Frivolous Fee: ATM Fees.
Solution: Many convenience store chains are now offering no-charge ATM’s, so even if your bank charges you for using a ATM outside of their network of ATM’s, you’re not getting it from both ends. Also, many credit unions will not charge you and will reimburse you a certain dollar amount of ATM fees a month from out-of-network ATM’s which charge a fee.
Frivolous Fee: “Fat Fees”
Solution: Now, what is a fat fee? Overweight people (like myself), depending on the airline, may have to pay extra for being fluffy. Why? Because of FFC laws about the amount of weight an airplane can have on it. If a plane is caught having too much weight, they can be fined, hence the reason that overweight people may get a little more on their tickets. How can you fix it? Well, losing weight is obvious, but avoiding those airlines may relay the message loud and clear so that these may go away.
Frivolous Fee: Inactivity Fees.
Solution: The first thing I talked about today was my inactivity fee on an unused account. Some credit cards with rewards will also charge you if you don’t use the card. Always read the fine print, cancel accounts you never intend on using again (don’t always do this- canceling too many accounts can hurt your credit score), and use rewards cards, even if you’re just buying a candy bar with it.
Avoid stupid fees by reading the fine print and keeping an eye on accounts. Until tomorrow, spend smart, save smart.
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