Avoiding Fees in Everyday Life

Life is expensive – almost everyone has taken steps since the recession hit in 2008 to cut back on their expenses, and some are faring better than others. The problem with budgeting these days, is that things don’t always cost what you think they are going to. Take for example, buying train tickets online. Many ticket sellers will add on a booking fee of around £1.50, which doesn’t look like much on paper, but this extra amount could throw your whole budget off if you’re trying to make the most of every single penny. Little fees (and much larger ones) are part of almost every aspect of life, but it is possible to override them most of the time. Here’s a rundown of the most common fee pitfalls.

Credit Fees

When taking out credit, like a loan for instance, then you could end up paying back much more than what you borrowed plus the interest. This is because some lenders have hidden fees, which can only really be found when you read the small print and the terms and conditions. If you've found a loan through a broker, then it’s likely that you’ll have to pay a loan finder fee, which is usually added to the full amount that you have to pay back. This is not an upfront cost to you, but it does mean that you’ll end up paying more than someone who went to the lender directly. You should also be aware of late payment fees, statement generation fees and early settlement fees.

Payment Fees

When you buy something online, you’d hope that the final price of the item is what you pay. Unfortunately, if you’re paying by credit card, you can often be hit by a card payment fee. These can range from 50 pence all the way up to £4.50 or even a small percentage of your original spend. Some sites will also ask for a fee if you pay via PayPal, which means that entering your debit card details is sometimes the only way you can avoid paying anything on top of what you want. Ensuring that you have a separate current account for online shopping could help you to budget for internet shopping, avoid the payment fees and keep your cash safe should your details be compromised.

Travel Fees

Travel fees can come in many forms. We mentioned the train ticket one above, but there are also other fees which can particularly be found when travelling by air. Saving money by flying with budget airlines is pretty common, but the added fees for baggage allowance, picking your own seat and even using the bathroom when on board can really push the prices up. Make sure you read the small print when booking and if ordering your tickets online, never click the confirm button until you've read everything on the page!

‘Offense’ Fees

Being fined for things like not paying for a parking ticket or leaving your bins out long after rubbish collection day can be easily avoided. Keep mindful of what you’re doing and always keep your paperwork organised.