How to Get Out of Debt - Watch Those Fees

When it comes to cutting spending and paying off debt, one area that you may have overlooked is the fees that you are paying on everyday items. By themselves, those fees may not seem like a big deal, but they can quickly add up and take a substantial bite out of your budget every month. Some of the fees that you may be paying are obvious while others you may not even notice until you take a closer look at where your money is really going on a regular basis. Saving money means keeping a watchful eye on every aspect of your income and expenditures.

The first step to avoiding unnecessary fees is to get organized. This will mean paying your bills on time every month. Aside from the interest that you are already paying on credit cards, automobile loans and your mortgage, you will also be hit with an extra fee if your payments are late. While late payments may be unavoidable once in a while, you should do your best to pay your bills on time in order to put your money to the best use possible. Even a single late payment can do real damage to your monthly budget. For example, some landlords will charge an extra $50 if your payment is five days late.

Another area where you may be paying unnecessary fees is at the ATM. Automatic teller machines are a handy way for you to get cash when you are away from your bank but they can also sock you with unnecessary fees that you may not notice. Typically, an ATM from a bank other than your own may charge anywhere from $2 to $5 on every withdrawal. It does not take very long for these fees to add up. Try to avoid these ATM fees whenever possible.

Another fee that you may not realize that you are paying is when it comes to over the phone payments. Many companies will charge a convenience fee of $2 to $10 simply because you choose to make a payment over the phone rather than sending your payment to them in the mail. Before you make any over the phone or online payment, make sure to check for these extra charges. If you keep a close eye on the extra money that you are being charged, you may find that you can save hundreds of dollars every month simply by avoiding these unnecessary fees.