With the current state of the economy, everyone is trying to make the best of a bad situation. This includes banks, credit card companies and mutual funds. However, with a little strategy and smart thinking, an individual can avoid paying the "price" for rising prices.
Credit Card Fees
When fees are up, it's time to make a change. In order to cope with rising credit card fees the best advice is to swap for a lower fee credit card. Shop around and look for a card that charges 0% for the first several months and has no transfer fee. This will allow the customer to maintain a credit card without paying unwanted charges and transfer fees. Avoid the credit card "percentage game" and make the best decision.
Unwanted Mortgage Fees
In the current economic standing, many banks are leery about lending due to the fear of default. In order to tackle this fear, much prevention has been ordered. Fannie Mae and Freddie Mac have added a 0.25% "adverse-market fee" to each and every loan insured. If an individual is suffering thanks to a low credit score (below 720) or is refinancing and has less than 40% equity, that individual can expect to pay as much as 3% of the loan value.
The most simplistic solution to avoid this headache is to pay the bills in a timely fashion. Reduce the credit card balance and sufficiently maintain proper payments. By maintaining strong credit, those extra unwanted fees can be left on the table for someone else to pay.
Get Rid of Mutual Funds
In order to maintain some sense of stability, fund firms had to increase fees to meet the cover costs. However, an individual can easily win in this situation by simply getting rid of the current loan. If the loan is in a taxable account, that individual can simply write off his or her losses and later revisit with a more resourceful and cheaper loan.
Rushed Financial Decisions
As always, it's important for a person to make responsible choices and always do the proper research. Understand the current state of the economy relevant to an individual's current situation. Never make a hasty or swift decision based on mere speculation. Know the facts and understand the best way to proceed in a given financial situation.
The last thing an individual needs to do is make a situation worse by making a hasty decision based on half truths or lack of proper understanding. When a person knows where they stand...that person will also know what avenues to pursue. Stay ahead of the game, and learn how to win in a struggling economy.
Source
- Bigda, Ismat Sarah Mangla. "3 ways to dodge rising fees." money.cnn.com Web.27 Jun 2009.
Bryan Parker - Bryan Parker has been a passionate and successful writer for 20 years. His enthusiasm and love for his craft are second to none. His love ...
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