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What are the worst consumer finance fees and why?

 

While “junk fees” impact every household differently depending on their needs and budget, the fees that hit the hardest are the ones that deceive consumers about the initial cost of a product or service beforehand. Whether booking a flight or place to stay, renting a car, or even applying for a mortgage, consumers may reach the end of the confirmation or comparison process to discover fees that change their total costs entirely. At that point, even if they decide not to spend the extra money or use a different service, they’ve already lost their time and will often have to spend even more to weigh the “real” costs. In short, the worst consumer fees are the hidden ones.

 

How can consumers get rid of the fees, or at least curb the amount they have to pay?

 

While I have yet to find a strategy to avoid them entirely, one of the most effective and easiest ways to curb these fees is to simply ask about them. Before comparing your options or just accepting a fee, ask about it first. Many times, fees are much higher than the actual expense covered, so by asking about them, you can get to the root of what you’re actually paying for. And you’ll often find that many fees can be negotiated or even removed. For example, you may be able to call your bank if you’ve accidentally overdrafted your account to avoid an overdraft fee. You can contact your credit card company to ask about removing a late payment penalty. You can even talk to your lender about waiving hefty fees that are often tacked on to loans. As simple as it sounds, one of the best strategies a consumer can use to reduce fees is to simply ask.

 

How can consumers get in front of the problem and avoid having to pay certain fees before they become a monthly issue?

 

It always helps to do a little homework before taking any large financial steps. For example, when applying for a loan, be sure to ask about any application or associated fees. Ask banks about overdraft fees and protections before opening an account or comparing rates. Research the fees associated with certain booking sites before comparing products or services on them. Taking this one extra step in advance is an investment that can save consumers valuable time when calculating the true costs of an expense. And if you’re anticipating an unavoidable fee for a service, include an estimate for it in your budget from the get-go to make sure you don’t forget it.

 

Insert a long beautiful story about your business and how it has started. Tell about your team members and write an article about the Founder of this business. Insert your own photos, so customers can learn about you more and trust you. 

 

 

 

Insert a long beautiful story about your business and how it has started. Tell about your team members and write an article about the Founder of this business. Insert your own photos, so customers can learn about you more and trust you. Insert a long beautiful story about your business and how it has started. Tell about your team members and write an article about the Founder of this business. Insert your own photos, so customers can learn about you more and trust you.