Are Credit Card Fees Out of Control? By Elizabeth Williams At Isnare.com Ezine Articles

We all know that borrowing money does not happen for free. In fact many consumers are so accustomed to additional “fees” that they barely blink an eye when paying them as long as they continue to have access to financing. Credit card companies know this and for years have been profiting billions of dollars off of those fees that appear on your monthly statement. It should come as no surprise then to so what is currently happening within the credit card community. As banks rush to lessen the hit from rising defaults, more and more fees are showing up on consumer statements. The problem is many consumers are no longer able to afford these fees and paying them is much less enjoyable when you have maxed out your credit which is the case for millions of Americans.

The following fees contribute to growing consumer debt and increasing profits for credit card issuers.

Balance Transfer Fees- For many consumers moving high interest credit card debt to a lower interest card is the fastest and easiest way to save money each month. While your payment may stay the same, more of your payment is applied to your balance instead of paying interest charges. In the past you could safely bet on balance transfer fees that did not exceed $75, however in current economic conditions there are now no limits. The fee is based on a percentage of the balance transferred and can rise to exorbitant proportions.

Cash Advance Fees- Using your credit card for cash may be convenient but you can expect to pay for that convenience. Not only will you get hit with a fee to access the cash but you will also pay a much higher interest rate on cash advances if you do not pay your balance in full each month. Remember under terms, consumers who do not pay their balance in full have their payment allocated to the lowest interest balance (cash advances are not the lowest). This could mean paying months and months of interest charges before you actually pay back the cash advance.

Foreign Transactions Fees- With summer travel season just around the corner many people have plans to travel abroad. Your credit card may be accepted at millions of location world wide but again, you will pay for the convenience of using your credit card for purchases. To facilitate the transaction your credit card company will charge you a 3% fee.

Late Payment Fees- One of the most common fees consumers occur is the result of making a payment past the due date. Fortunately this is one of the fees that remain within your control. Take the necessary steps to ensure your payments are posted to your account on or before the due date each month to avoid incurring these fees which have risen in the recent years. Keep in mind paying late not only leaves you vulnerable to late fees, but also a higher interest rate and damage to your credit.

Over the Limit Fees- Another fee that you can control is the fee charged when you exceed your credit card limit. Over the limit fees are similar to overdraft charges in that they can quickly balloon out of control making it more difficult to get your account in good standing. Always pay attention to your balance, especially now when card issuers are slashing credit limits.

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