Tips to Avoid Bank Fees

Hello dear, this is Dora L again.

Many people have sent emails to me wanting to know why is it on their bank statement they keep getting all these extra added on fees and charges. It’s quite simple honey, the banks are in business to make money and they will do whatever they can to squeeze as much of it out of you as possible. You must understand a bank is not your friend. They want your money and as much of it as they can possibly get. However, we can minimize this with a few little tips.

  1. Get credit card payment protection. If you miss a payment or are late, your benign 0% credit card can go up to a whopping 16 to 21% monster that you will find can be an anchor around your neck and drastically affect your lifestyle. Most people never read the fine print on their credit card application and they blithely sign it and think nothing of it. In fact, can you put your hand on the paperwork they came with your credit card? No, I didn’t think so. Most people throw it away right after they pull the card out. This is all designed in how the paper is folded, lettered, and colored. It is created specifically to make it as unreadable as possible so people won’t take the time to do it. This is one of the biggest moneymakers that credit card purveyors use to pad their bottom line.
  1. One of the worst things you can do is pay the minimum amount on a credit card. That and paying on time are two ways to either landing you in the poorhouse or end up paying on your credit card for the rest of your life. Download a financial calculator of your choice and go through the formula that is plainly written up for you. You will see that you never pay off the principle all you are doing is paying off on the interest. Moreover, if you pay on time you’re already being docked interest payments.Your best bet is to pay early and double the minimum amount if you can. In this way, you pay down the principle and prevent the interest from increasing the amount of money you owe.
  1. Do all your banking at an ATM that belongs to your bank. Do not go to a teller window. This is another little “Oh by the Way” that banks use to suck your money out of your wallet or purse. You are hit with a fee for just asking a question of a teller. You also get charged a fee if you use any other ATM than the one from your bank. Most of you should already know this but you would be surprised how many people want to talk to a teller about every little thing having to do with their account.

George is calling me, my favorite TV show is on. NCIS and Leroy Jethro Gibbs, even though he’s 70, still gets my blood pumping. So, until next time this is Dora L signing off.