Top 5 Places To Look For Hidden Fees & How To Avoid Them
Brian New
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NORTH TEXAS (CBS 11 NEWS) – Admit it. From time to time you’re guilty of not reading every line on a bill or all that small print before signing-up for a credit card or bank account.
So-called “hidden fees” cost the average consumer hundreds of dollars every year, and these fees may be in more places that you realize or think about.
“It’s not always that they are hidden but maybe we saw it in the fine print and said that will never ever apply to me,” said Todd Mark with the non-profit Consumer Credit Counseling Services of Greater Dallas.
Mark said in many cases these fees can be reduced or even dropped. “Be your own best advocate,” he said. “Negotiate. Ask ‘What if I don’t pay? Will you still do business with me?'”
With Mark’s help, here’s our top five places to look out for hidden fees.
Bank account – There’s more than just an overdraft fee. According to WalletHub, the average checking account has more than 30 different fees. Many banks these days will even charge a fee for using the bank’s own mobile app.
Internet bill – Until recently modems were usually offered by Internet providers to customers for free. But now many Internet companies charge a monthly rental fee for this – usually around $6. At that monthly rate you could buy your own modem within a year.
Mortgage – On a $200,000 home, the average buyer can expect to spend roughly $2,400 in closing costs. A lot of those fees you might not be able to avoid, but one worth asking a lender to waive is the application fee. This fee can run between $100 and $300 and, when faced with losing a customer, some lenders have been known to drop the fee.
Hotels – Before you book a hotel room check to see if you’re being charged a resort fee. Some hotels will add this fee simply for having a swimming pool. Also, if you’re going to pay for a drink or snack from the mini-bar, read the fine print so you know if you’re going to have to pay for a “restocking” fee on top of it.
Retirement account – Management fees can take a big cut out of your retirement money. Many financial experts advise investors to adhere to the general rule of not investing in a mutual fund where the management fee is greater than 1-percent. Also, beware of upfront load fees or funds that impose a sale charge when buying shares. There are plenty of no-load funds available on the market.
(©2014 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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