Saving money has become extremely important in today’s modern world, where things can change in a heartbeat. Since a large part of our monthly income goes to credit card payments, if you manage to reduce spending in this area, your finances will thank you. Fortunately, you can do this, by avoiding unnecessary credit card fees.
Not using a credit card is probably the best way to avoid paying unnecessary credit card fees. However, this can prove difficult, as credit cards are needed in order to establish a person’s credit rating. But there are other ways.
1. Be smart from the start
Some credit cards out there offer no annual fees. If you do your research and get one such credit card from the start, you will be able to save.
2. The hidden unnecessary fee
Maybe it didn’t cross your mind, but credit card interest is an unnecessary fee. If you pay everything that you owe in full and on time each month, you will never have to deal with it.
Being a responsible user helps in this situation. It’s easy to throw money away on things that you may not need, especially with a credit card. But, if you really can’t afford those things, this becomes a huge mistake, which can both drown you in debt and destroy your credit score.
3. Stay away from cash advances
Cash advances usually come with much higher interest, as well as ATM charges. That’s why you should avoid taking out cash advances on a credit card. Unless it’s absolutely necessary, of course.
4. Respect limits
Make sure that your credit card’s balance does not exceed its credit limit. If it does, your credit card issuer may charge a fee. And this is just more money thrown out the window.
5. Watch out for insurance
Some credit cards also come with insurance plans that may cost you about 1% of the card’s balance per month. You may or may not need this insurance. But, if you don’t, you should decline any insurance offered to you by the credit card company. It’s a good way to save money.