Banks make billions of dollar a year in fees alone. Here are 5 tips to beating credit card fees:
1. Pay the minimum amount due on time.
This really is a credit card necessity. If you're not organised enough to remember to transfer money every month, set up a direct deposit. This will avoid irritating fees (typically from $10 to $40) and the loss of your interest-free period.
2. Ditch the annual fee.
Many credit cards now come with no annual fee – and you could be better off with a cheap, fee-free credit card than paying for rewards programs you don't really need.
3. Avoid the cash advance.
A cash advance can seem convenient, but it's typically a very expensive way to manage your money. Cash advances usually attract high levels of interest from the moment you withdraw the money.
4. Rethink the supplementary card.
Supplementary cards can cost between $15 and $65 per person, per year. They're a great way to consolidate your credit cards, but make sure they're getting used.
5. Never exceed your credit limit.
Overlimit fees (of $35 or more) apply as soon as you max out your card, and bad credit ratings will follow. If you're approaching your credit limit, make sure to keep checking your balance before making purchases. Better still, top up your account with a payment, or look into a balance transfer to shift the debt to a lower interest rate.