Fighting Increased Fees in Your Finances

The cost of living is always on the rise and it is not much different in the world of personal finance. Consumers are spending more money each month paying off fees and other charges they may not even realize exist.

Here are a few places you can fight the high cost of fees on the homefront:

Mortgage Fees
It is not secret the housing and mortgage industries are still suffering the repercussions of national financial woes. Mortgage lenders are still afraid to lend money so they have tightened the rules for lending and have become stricter about their qualification process. Their efforts are in place to help reduce the risks of mortgage loan defaults and subsequent foreclosures. Some of the fees now associated with mortgages include an “adverse market fee” for Freddie Mac/Fannie Mae backed loans. Refinancing a mortgage can also cost consumers up to 3% of the loan value if there is not 40% or more equity in the home. Those borrowers who have less than a 720 credit score may also end up paying fees to ensure a loan. Your best bet to avoiding these additional fees is to improve your credit history prior to applying for any loans. You can do this by paying your bills on time each month and avoiding all other applications for new credit.

Credit Card Fees
In light of the recent adoption of new credit card rules, credit card companies stand to lose some potentially big profit in 2010 when these rules take affect. Many card companies are looking to get what they can while they still have the power to do so. They get this profit by increasing fees and interest rates. Some fees include surcharges on balance transfers, annual membership fees, and even fees for buying products outside of the country. Your best bet for avoiding these fees is to be knowledge and aware of what is going on with your account. Sadly, many consumers never look at a monthly statement beyond their required payment amount. Check your statements for fees and other charges each and every month. If you find you are paying fees for no reason, consider switching to a new credit card that doesn’t have such fees. If applying for a new credit card, read the fine print.

Bank Fees
Like the credit card companies, banks are trying to make a profit any way they legally can. They are able to increase revenue by charging customers fees on services and transactions that used to be free. There are fees for using the ATM, having accounts, transferring money, and even paying bills. Again, many consumers continue to pay these fees without even noticing the fees on their account. If you find your bank is now charging you fees for services that used to be free, contact your bank and let them know you are considering taking your business elsewhere. If you are a long-time and loyal customer, the bank manager may be willing to forgo some or all of the fees they’ve been charging you. If they are unwilling to work with you, start shopping for a new bank that has less or no fees for similar services. Banks are quite competitive and you may be able to find a much better deal than the one you are currently getting.