Credit Card Fees

Bottomless Pit of Fees

Sometimes if seems like you are in a "Blackhole", the more fees you pay the more fees you get. As you soon as you begin to make any headway, you receive that dreaded letter from your credit card companies telling you that they have changed your interest payments. Just when you thought you might one day be able to pay of your large sums of debt, it seems as if credit card companies always find a way to pull you back in to paying more fees and blocking your escape to financial independence. Be that as it may, we as consumers need to take responsibility for our spending habits. We also need to take steps to avoid those unnecessary fees and eliminating them all together.

There are several ways to reduce your credit card fees and keep your payments down.

1. If you typically have funds in your account and can be certain that there is always enough money in your account to at least pay the minimum credit card fees, then it is advisable that you set up automatic payments with your credit card companies. Many times life takes over and we forget the little things. Maybe you forgot your payment due date and you receive a late notice in the mail notifying you of a $39 late fee due to late or non-payment. Maybe you have so many credit card bills that you actually thought the bill was paid and came to realize that you overlooked a different payment. Not only does this incur the fee machine of the credit card companies, but you risk going into default on your credit card and having your interest rates increased to astronomical proportions. If at all possible, set up automatic payments and in the end you will save yourself a lot of money.
   
2. Minimize the use of your credit cards. Try to buy things with your debit cards instead. While this option leaves you with less purchasing power, it will save you a fortune down the line and will teach you to only buy things that you need. You might end up realizing that the shoes, dress or jeans you thought you had to have weren't that important afterall.
   
3. Pay attention to you credit card bills. Many people never even take a look at the statements sent by their banks or credit card companies. This might be due to the fact that they don't want to know how much they owe, which is a major mistake. This might also be due to plain and simple denial. The fact of the matter is that the bill collectors will eventually come. If you face your fear and actually pay attention to the charges in your credit card statements, you might actually find inspiration to change your ways. Out of sight and out of mind is not the way you want to go.

Read the notifications that are sent to you by the credit card companies. New laws have have been passed forcing the credit card suppliers to be more transparent in their disclosures. These new laws of transparency have made it easier for credit card holders to exercise some control over their interest rates being increased. In the past you would be sent what amounted to a complex legal document from your credit card company in addition to your statement and many people simply ignored the disclosure without ever reading it. What these consumers failed to realize was that in many cases they could have prevented their credit card companies from increasing their interest rates by writing a letter to the credit card companies telling them that they rejected the rate increase.

Once you write the letter telling your credit card issuer that you reject the rate increase, all you have to do is to avoid using your credit card for any additional charges and your interest rate would remain the same. The moment you make a new charge on that credit card the rate increase would take effect. Rather than going to debt consolidation companies, which in some cases can be more harmful than bankruptcies, you could then simply shelf your credit card and continue making payments at the lower and more manageable interest rate until your debt is paid off.

There are ways to reduce and totally eliminate your credit card fees. It's your credit, so know your rights.