Saving unnecessary fees

A few days ago I received an inquiry from a national reporter. What are 5-10 "hidden" fees (service fees, for example) that the average consumer probably does not know he or she is paying? Are the fees necessary, or can consumers get out of paying them? These could include fees for unnecessary services tacked onto an insurance policy, bill, credit card, checking account, etc., that consumers should be able to opt out of.

Here are my “cliff notes:”

• Credit card – annual fee- get a free one instead – or pay an annual fee if you get benefits
• ATM charges… GRRRR! Maddening – shop around, some banks offer accounts w free ATM anywhere – or plan ahead and use your own bank
• Bank charges for withdrawal w/o a check – say you go in the bank and just make a withdrawal and don’t have a check on you
• Insurance – charge for towing expense – if you have AAA it is already covered on AAA
• Fee for a savings account – some banks charge a monthly fee for the account if it is small – shop around, use a credit union, or local bank – or just save your cash until you get enough to put in
• Check card fees… GRRR! Again – use cash instead – budgeting is easier w cash anyway
• Over limit fees on credit cards – watch your limit carefully so you don’t exceed it, even by a $1 – if you do, the fees can escalate quickly and compound
• Insurance – is your deductible high enough- $250? Can you afford $500 – if not yet, make a plan to save $500 and then raise your deductible – you can save your deductible sometimes in as little as 3 to 5 years
• Insurance- shop around – price your policy – while also being careful to deal with a AAA rated company – often you can save hundreds by shopping
• Overdraft – obvious – balance your account – and be careful
• Renting a car – insurance on the rental – get a free credit card that offers this coverage so you don’t have to pay for it when you rent
  
  May prosperity be yours,
  
  
  Mackey McNeill, CPA, PFS, IAR
  CEO/President
  
  Mackey Advisors
  525 West Fifth Street
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  Covington, KY 41011
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  CultivatingProsperity.com