Hidden fees

How to Avoid These Common Hidden Fees

Emily Guy Birken — Tue, 03 Mar 2020 09:00:08 +0000

When I found out that my favorite comedian was coming to town, I couldn't wait to buy tickets. Each seat in my preferred section cost $84, which was a little high, but I figured it was worth it to see someone who consistently makes me laugh. But after adding in the service charge, taxes, and a fee to email the tickets to me, the two $84 tickets came to a total of just over $200.

Anyone who has recently bought tickets to a music, sporting, or comedy event has had a similar experience. Hidden fees increase the price of your seat, but you won't even realize until it's time to enter in your payment information. At that point, you're already excited about the event and don't want to back out because of an unexpected cost.

Buying tickets is not the only time you find yourself staring down a hidden fee. Here's what you need to know about the surprise extra charges on common purchases, and how you can either plan for them or fight them.

Events

Buying tickets to events has changed a lot in my lifetime. Back in high school, I actually had to visit a box office or local retailer to purchase tickets to an upcoming event. I even camped out to be among the first in line for a popular band that came to town. When buying them in person was the only way to get tickets, the face value of the ticket was much closer to the amount you would pay for it. In general, you'd only pay sales tax on top of the ticket price.

All of that changed when Ticketmaster became the primary method for buying tickets. The event sales giant started charging everything from service fees to delivery fees to processing fees to facility charges. These additional fees are revealed only after you have chosen your seats at the base ticket price, and while you're watching a clock tick down the amount of time before the tickets are released to another hopeful concert-goer.

These fees add 25% to 35% to the price of your ticket, and the use of the countdown clock and the belated reveal of the fees both work to make you grumble but ultimately fish out your credit card to pay anyway.

For a short time, Ticketmaster held an absolute monopoly on tickets, and it still represents more than 80% of the market share of the ticket-sales industry. However, that doesn't mean you have no choice.

Avoiding the fees

The savvy concert-goer and sports fan has several options available for reducing ticket fees. To start, you can purchase directly from the venue to reduce your fees. Even if you buy the tickets online through the venue's online portal, you can usually get a lower price than you would through the big ticket brokers. This is what I did to buy my comedy tickets. As unhappy as I was paying an additional $32 for them, it represented only a 19% markup. Had I gone through Ticketmaster, the markup was just over 34%.

If you have more time than money, rocking the old school method of buying tickets in person at the box office can save you even more money.

Airline tickets

Within the past 10 years, airlines figured out they could increase profit by reducing the freebies they used to offer. They started by levying a checked baggage fee, which ranges from $10 to $150 per bag, depending on which airline you fly and how many bags you're checking.

From there, travelers started seeing seat selection fees when booking online. While there are always a few "free" seats that are covered by the cost of the ticket, you'll often find they're sparsely spread throughout the cabin and often not next to each other. This means that you (and your traveling companions) will each have to pay a seat selection fee if you'd like to be seated together.

Additional fees may include charges to watch the onboard entertainment and for drinks and snacks. All of these fees can inflate the cost of your flight by as much as 50% or more.

Avoiding the fees

Within the airline industry, fees vary a great deal. That means it's still possible to shop around to avoid extra expenses on top of your airline ticket. Some low-cost airlines allow you to bring up to two checked bags for free, skip seat selection fees, and enjoy complimentary snacks, drinks, and entertainment onboard.

Even if you don't have many airline choices because you don't live near a major airport, you can still keep your fees lower by purchasing your tickets as far in advance as possible. The sooner you buy your tickets, the more likely it is you'll be able to pick your seats for free.

In addition, making sure you understand exactly what fees your airline charges can help you to avoid last-minute surprises. Knowing before you reach the airport that you'll have to pay for a checked bag gives you the option of packing light with just a carry-on. And you can come to your flight prepared with snacks and entertainment to avoid paying for them on the plane. (See also: How to Save Money on Flights Using Fare Alerts)

Hotels

Booking a hotel room online allows you to easily compare room rates so you can find the best deal. Unfortunately, the rates you see online don't necessarily match the amount you pay once it's time to check out. That's because of charges like resort or amenity fees, parking fees, online booking fees, and Wi-Fi.

These fees vary and can be difficult to determine ahead of time. For instance, the resort fee is a daily additional charge levied for your use of the hotel's amenities, from gym and pool access, to using the hotel's private beach or enjoying the breakfast spread. Even if you have no plans to use any of the amenities covered by the resort fee, you're still on the hook for the fee. Most hotels charge a flat daily rate for their resort fee, but some charge a percentage of your room rate or a per person rate per day.

Avoiding the fees

Parking fees and Wi-Fi charges tend to be the easiest fees to determine ahead of time. Calling around and asking what these fees will be can help you decide where to stay. You may also be able to ask for discounts on these fees based on membership to groups like AAA or AARP or a hotel loyalty program.

Many countries prohibit charging undisclosed fees like resort fees and online booking fees, but the United States has no specific prohibition — although deceptive pricing is against the law. This means you can find the information about resort and other fees by either looking on your preferred hotel's website or by calling and asking. However, the fees are not necessarily going to be easy to find or calculate ahead of time.

There are several options for opting out of resort fees. The first is to only book rooms at hotels that do not charge them. You can check if a hotel charges resort fees at ResortFeeChecker.com.

In addition, booking a room using travel rewards points often means that your resort fee and your booking fee are waived. Hotel loyalty programs can also potentially earn you fee-free stays. (See also: How Travel Rewards Cards Can Help You Score Luxury Travel Perks)

Finally, opting out of hotel stays altogether can be another method of avoiding fees. Finding a place to stay through a peer-to-peer homeshare like AirBnB or VRBO can offer you cheaper per-night costs that have no fees tacked on.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Signs It's Time to Find a New Savings Account

Dan Rafter — Fri, 20 Oct 2017 09:00:06 +0000

If you're putting any money into a savings account, congratulations: You're ahead of most U.S. adults. A survey published in 2016 by GOBankingRates found that 69 percent of American adults had less than $1,000 in their savings accounts.

But just because you're saving money doesn't mean that you're putting it in the best savings account. And sometimes, there are signs that you should move your dollars to a new account. (See also: The Types of Savings Accounts: Which Is Right For You?)

Your bank is charging you fees

Because banks don't pay you much interest on savings accounts, they shouldn't charge you any fees, either. Still, there are plenty of savings accounts that do come with fees.

The most common is the maintenance fee, usually ranging from $5 to $35 a month. Most banks will waive this fee if you keep a minimum amount of money in your savings account at all times. This minimum can range from $100 to more than $1,000, depending on your bank.

Other banks limit the number of free transfers or withdrawals from a savings account to a certain number every month; usually about six. If you go past that number, you'll be hit with a fee for every additional transfer or withdrawal you make. That fee could be as much as $10 for each of these additional moves.

If your balance doesn't get too low and you don't plan on making many withdrawals each month, you might never be hit with these fees. But why take the chance? There are plenty of savings accounts that come with no fees. Search for one of those instead. (See also: Are You Paying These 6 Unfair Banking Fees?)

You're not making enough in interest

You won't get rich off your savings account. Banks are stingy when it comes to earning interest, often offering as little as 0.06 percent or less. Don't expect to grow your savings much with such a paltry rate.

But there are some banks that pay higher rates with their savings accounts, some in the range of 1 percent. Again, an interest rate of 1 percent won't make you a fortune. But if you can find a savings account that pays higher interest while not charging you any fees, why not take it? (See also: 5 Best Online Savings Accounts)

The online banking options are too limited

In addition to low fees and higher interest rates, you should also be hunting for a savings account that is convenient. This means one that offers a robust online banking platform. You want to be able to log onto your account from your laptop, phone, or tablet and quickly transfer money from a checking account into your savings account. You'll want the option of mobile deposit, too, in which you can snap a photo of a check with your phone to deposit it in your savings account.

What you don't want is to have to travel to your bank every time you want to make a deposit in your savings account. That's too much work, and now that online banking is so common, unnecessary. (See also: 4 Things to Consider Before You Open an Online Savings Account)

Your bank is closing its most convenient locations

Yes, online banking is easy and simple. But there might still be times when you actually want to visit your bank in person. If your bank is shedding branches, and the branches that it's closing are those closest to you, it might be time to consider moving your dollars to a new savings account.

Because savings accounts generate so little financial reward, it's important that they also cause you as little inconvenience as possible. If you have to drive miles to get to your bank's nearest branch, it might be time to hunt for a replacement bank that's just a short walk or drive from your home. (See also: 8 Ways Your Savings Account May Be Costing You)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Things You Might Miss in Your Credit Card's Fine Print

Annie Mueller — Thu, 28 Sep 2017 09:00:05 +0000

Be honest: Do you ever read through all that fine print in your credit card agreement? Or do you simply skim and sign up? While poring over fine print might feel like a waste of time, it's important. It can hold critical information about your new card; read it carefully to understand the following key terms and conditions.

1. How your credit limit can change

First things first: Make sure you know exactly what your credit limit is. Introductory offers often include language like "You can be approved for as much as $10,000!" or "Up to $20,000 credit limit!" Those "as much as" and "up to" phrases are important, because they don't guarantee that amount of credit; they just imply that it's possible. Know exactly what your credit limit is so you don't go over it, because doing so tends to invoke fees and trigger a high interest rate.

Once you know how much credit you have on a certain card, find out what actions or events might change your credit limit. If you miss a payment, make a late payment, or incur a fee, will your credit limit change? It's important to know, particularly if you plan to use the card to make a big purchase. (See also: 4 Questions to Ask Before Getting a Credit Increase)

2. How the interest rate will change

You'll often see the interest rate for a new credit card in big, prominent print on the initial offer. That's because a low interest rate is often the marketing tactic used to appeal and bring in new cardholders. How soon will that introductory interest rate change, and what will it become when it does? Look through the fine print for terms like APR (annual percentage rate), variable rate information, interest rate, and introductory interest rate to be sure you know exactly when that introductory offer is over, and what happens when it ends.

Be aware, also, that something as simple as one missed payment could cause you to lose the introductory interest rate sooner. Those terms should be spelled out in the fine print, and it's important to know that slipping up on a payment may bump your interest rate up sooner than you expect. (See also: Everything You Didn't Understand About Credit Card Interest, Grace Periods, and Penalty APRs)

3. How your payments will be allocated

If you use a credit card for purchases as well as cash advances, you probably have two different interest rates. Typically, cash advances come with a higher interest rate than purchases made on the card. And if you use the card for purchases made after that introductory, low-interest period, you'll have three different interest rates in play. (See also: How a Credit Card Cash Advance Costs You More Than a Purchase)

You want to find out exactly how your payment will be allocated for these different interest rates. In some cases, the default terms might put a much lower percentage of each payment toward the higher interest rate charges. Find out in the fine print if that's true, and if you have the option to request a particular payment allocation yourself for each payment you make.

4. How extra fees might add up

Credit cards come with plenty of extra fees: missed payment, late payment, and extra fees for cash advances or particular types of purchases. Look, too, for fees that kick in if you use the card over the credit limit.

Read the fine print to find out how many potential fees come with the card, when those fees are charged to you, how much each fee is, if there is a limit to how many fees can be charged, and if the company can change the fees at any time.

The ability to change fees can become problematic if you're counting on a particular window of time before a payment becomes late and that window changes. Some credit card companies will even set a time of day for payments due — say, noon on the 25th — and if your payment processes after 12 p.m., you're charged a late fee. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

5. How old debts might resurface

Although this particular term may not be as common, it's one well-worth noting. Some credit card companies purchase old debts, then offer cards to those debt-holders. The first statement comes in and the old debt is included in the balance due. If you've ever defaulted on a debt, read the fine print to make sure the credit card company is not asserting their right to include old or defaulted debts on newly opened credit cards.

6. How those terms can change

One last important point to remember about the fine print: What you read in that initial agreement can change, usually at any time. Credit card companies generally retain the right to change the terms of the agreement as they see fit, but they're required to update the card holders when those terms change.

That's why reading the fine print isn't a one-and-done event. You need to stay updated on changes to your credit card agreement, which means going over any material you receive with your regular monthly statement. If you see a change you don't like, take action right away: Call the company and negotiate for different terms, or, if the terms are really bad, simply pay the card off and stop using it. It's often better to go this route instead of canceling, since canceling a card can hurt your credit score. (See also: How to Close a Credit Card Without Dinging Your Credit Score)

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Beware These Sneaky Fees on Discount Airfare

Holly Johnson — Mon, 01 May 2017 08:30:14 +0000

Discount airlines have broadened the base of those who can afford to fly. These no-frills carriers slash prices by limiting benefits and offering an a la carte airline experience. But sometimes, flying a discount airline isn't nearly as cheap as you think.

If you've ever priced airfare, you've probably wondered why discount carriers offer lower prices and how they do it. How can Allegiant Air afford to let you fly from Cincinnati to Fort Lauderdale for $122 or less? And how can an international airline like WOW Air stay afloat when a round-trip flight from Boston to Reykjavik, Iceland costs less than $320? (See also: Best Travel Rewards Credit Cards)

The answer is "unbundling," an industry practice that's been growing for the past decade. Back in the day, when you bought an airline ticket, you automatically got an advance seat assignment, checked bags, carry-ons, and even meals (it's true — ask your grandparents).

Then came deregulation and rising fuel costs, and multiple airlines went bankrupt. Those that survived sought to boost profits by unbundling all those included services, meaning you had to start paying for many things that were once baked into the airfare. Airlines pitched this as a consumer benefit — why pay for checked bags if you're just bringing a carry-on? And it is a good deal for some passengers, but it's also a way for the airlines to make money — more than they made before unbundling.

Hidden fees on discount airlines

Discount airlines have taken the unbundling concept to the extreme, making them the most beloved airlines by some, and the most despised by others.

Not only will you be charged for checking a suitcase, you'll also pay extra to carry on a bag too big to fit under your seat (in fact, Frontier Airline charges more for a carry-on than a checked bag). Usually, the earlier you pay for bags, the cheaper it will be. Wait until you get to the gate and you could pay as much as $100 for a carry-on.

Then there are fees for choosing a seat, which goes up the more legroom you ask for. And you'll have to cough up extra for printing your boarding pass at the airport, for booking using a credit card, and even for water onboard (Spirit Airlines is notorious for charging $3 for water unless you need it to take medicine).

Sometimes these fees can cost as much as the fare itself. Take Allegiant Air, for example. Round-trip airfare from Cincinnati to Fort Lauderdale rang in at around $122 for random dates in May, which is downright cheap. But if you dig a little deeper, you'll find the base fare includes almost nothing.

Want an assigned seat near a window or an aisle? There's a fee for that (at least $10 each way). Need extra leg room? Roomier seats on this particular Allegiant flight start at $21, each way. You can bring one "personal item" on the plane for free (think: a purse), but you'll have to pay another $30 round-trip to bring a standard carry-on.

If you want to check a bag, that's another $40 round-trip. And if you need an agent to print your boarding pass at the airport, that's another five buckaroos each way. Pay with a credit card? Tack on $8 each way.

All of a sudden, your $122 flight surges to $238. While that's still affordable as far as airfare goes, it's nearly twice as much as the base price you were tempted with.

The same thing is almost always true when you fly an international discount airline. That $320 WOW Air flight to Iceland? It's actually $523.92 when you add on taxes, a carry-on ($81.98 round-trip), a checked bag ($101.98 round-trip), and an assigned seat ($19.98 round-trip). Flying international for $524 is still pretty sweet, but the price is over $200 more than the $320 "teaser price."

How to win the discount airline game

When you're shopping with a discount airline, make sure you know what is — and what isn't — included. Once you're abreast of which services and add-ons are charged on top of your base fare, you can compare prices with other airlines on an apples to apples basis.

Here's a good example.

Let's say you want to fly round-trip from El Paso, Texas to San Diego, California on May 5 returning May 12th of this year. As of this writing, the total cost for your base fare is just under $80 with Allegiant Air. Score!

When you add on taxes ($60.37), basic seat selections ($18), a carry-on ($30), a checked bag ($40), and a printed boarding passes ($10), however, the price tag goes up to $228. Plus, it's an extra $16 if you pay with a credit card, so let's call it $244.

If you search for the same flight with other airlines on Expedia, you'll find prices start at around $388 on American Airlines. Your seat selection and a carry-on are included in your fare, but you'll likely need to pay for $25 for a checked bag. All things considered, the Allegiant flight is still an awesome deal, it's just not quite as awesome as the upfront pricing makes it seem.

The best way to navigate the total costs of your airfare is to run the numbers on every flight you book. You may have to go through a bunch of prompts and fine print to see how much more you'll pay for assigned seats, carry-on luggage, checked bags, and boarding passes. Make sure you understand whether each add-on price is for one way or round trip. Once you have a new price that includes the services you need, you can compare that price to what you'd pay on other airlines. Sometime, it's actually cheaper to just go with a legacy airline. (See also: Best Sign-Up Bonuses for Airline Miles Credit Cards)

If you really want to save money with a discount airline, you can always consider purchasing the bare-bones option. Make do with whatever seat they give you, carry only a small bag with you, and print your boarding pass at home. If you don't need a lot of luggage and can sit next to anyone, your airfare should be rock bottom. (See also: 10 Ways to Get Free (or Almost Free) Airline Tickets)

Also remember that at least one discount airline is known for "transfarency" — a term Southwest Airlines uses to describe its notable lack of fees. Southwest offers cut-rate airfare with no additional fees for seat selections, checked baggage, boarding passes, carry-ons, and even trip changes or cancellations. (See also: Why Southwest Is the Best Domestic Airline for Families)

At the end of the day, it's up to you to figure out what's included and find the best deal. Sometimes discount airlines really do offer the best pricing in the friendly skies. Other times, their prices are no more than gimmicks.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Watch Out for These 5 Sneaky 401K Fees

Damian Davila — Mon, 28 Sep 2015 13:00:40 +0000

No matter how diligent you are at socking away money into your 401K, you could still be contributing less than you think, thanks to hidden fees and plan costs. According to a study from AARP, about three in five Americans are unaware of how much they're paying in 401K plan fees.

Excessive 401K fees can eat away your returns. Let's assume that a worker invests $5,000 every year over a 35-year period in a 401K plan with an annual return of 4.9%. She would end up with $423,000 at the end of period assuming an annual fee of 0.5% of the total balance, and with $345,000 at the end of the period assuming an annual fee of 1.5% of the total balance.

To claim back control of your retirement account, here are five 401K fees to look out for.

1. 12b-1 Fee

Owing its name to the Securities and Exchange Commission (SEC) Rule 12b-1, a 12b-1 fee is a charge from a mutual fund to cover marketing, distribution, and administration expenses.

The original intent with this rule was to encourage mutual funds to invest in marketing so that more people would buy into the mutual fund. In theory, the more assets that a mutual fund can buy, the better the economies of scale. Unfortunately, the empirical evidence from the SEC shows that mutual funds with 12b-1 fees have higher expense ratios than those without those fees, and that the services rendered to earn the fees don't enhance the fund's performance.

By law, 12b-1 fees can range between 0.25% and 1% of a fund's net assets. Given that these fees have shown no benefit to investors, you should try to choose funds that don't charge 12b-1 fees at all. If all your available investment options charge such a fee, go with the one that charges closest to the minimum 0.25%.

2. Redemption Fee

A front-end load is one of many sneaky investment fees to watch out for. Front-end load funds have such a bad rap that many investment firms have started advertising no-load fund options.

However, there can be a catch. While no-load funds won't charge you for loading shares, those funds can charge you a fee for unloading your shares too soon. Known also as an exit fee, back-end load, or contingent deferred sales charge, a redemption fee is applied to an investor that exits a fund too soon. How soon is too soon? The minimum holding period ranges from 30 days to one year, so make sure to check your fund's prospectus.

Here are two useful rules of thumb when evaluating redemption fees:

The average minimum holding period to avoid a redemption fee is 65 days, so avoid funds that require you to hold onto your fund much longer than that. While your nest egg should be a last resort fund, you shouldn't be penalized for accessing your money when in need.
The SEC limits redemption fees to 2%. However, some funds may charge as low as 0.01%. The lower the redemption fee, the better.

3. Exchange Fee

Diversification is a useful investment strategy to lower your market risk. For example, it's generally better to split your investment into three significantly different assets than to "put all your eggs in one basket." If one of your investments tanks, you still have two to fall back on.

Before you fire up the online dashboard of your 401K and transfer money from one fund to another, check for applicable exchange fees within your retirement plan. Even worse, some 401K plans may tack on additional load and redemption fees when you exchange between funds.

4. Individual Service Fee

On top of your plan's administrative fee, your 401K may incur individual service fees related to features that you opted into. You may incur individual service fees when:

Taking a loan from your 401K account;
Executing participant investment directions;
Opting for a clause to terminate a contract with your employer before the contract's expiration date; or
Choosing an investment option that includes an insurance component (e.g. annuity).

There are many other types of individual service fees. Keep in mind that some individual service fees that are paid indirectly from the investment options you have chosen may not be listed in your quarterly 401K statement.

5. "Other" Fee

Along with those other fees, 401K plans can have a miscellaneous fee category for listing anything that is neither a sales charge nor an account maintenance charge.

Some examples of other fees are:

Custodial expenses;
Legal expenses;
Recordkeeping expenses;
Furnishing statement expenses;
Toll-free telephone service fees;
Transfer agent expenses; and
Other administrative fees.

Depending on the terms of your plan, another fee may be a percentage of your assets invested in the fund or a flat fee.

The Bottom Line

Do your due diligence before choosing funds within your 401K plan. To get a full picture of your investment options, you need to go beyond their average returns. The two key documents that you need in order to find out more about applicable fees are the Summary Plan Description and the Annual Report.

Summary Plan Description (SPD)

Upon joining the 401K plan, you receive a copy of your SPD. You will receive an updated copy every five years if there are significant changes or every 10 years if there are no changes.

Annual Report (Form 5500 Series)

Every year you should receive a copy. If not, you can examine a free copy from the Department of Labor.

Do you know what fees your 401K is charging you? Are they fair?

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

37 Hidden Travel Fees You've Probably Paid But Shouldn't Have

Nora Dunn — Tue, 18 Feb 2014 11:24:15 +0000

Travel budgeting isn't as easy as it seems. Hidden travel fees can take you by surprise and put a damper on your trip. Here are 37 hidden travel fees to be aware of, with some tips on how to avoid them.

Flying

Budget airlines are terrible for tacking on hidden fees; it's how they make money. But they're not the only offenders. Here are some unexpected fees to beware of, some of which you'll incur before you even arrive at the airport. (See Also: How to Get Through the Airport Faster)

Taxes and Surcharges

Some airlines sneakily tack on various taxes and surcharges just before the final payment screen. And if you are booking a free flight with frequent flyer miles, remember that it isn't really free; you're still on the hook for the taxes.

Frequent Flyer Mile Cancellation Fee

I recently booked a reward ticket using frequent flyer miles. When I had to cancel, I was told I'd have to pay $150 just to redeposit the miles to my account. You can sometimes avoid this by canceling the reservation and leaving your miles in limbo. Then, use your reservation code to call in later and book different travel with those points; you'll pay a change fee, but it generally works out better. (See also: Everything You Need to Know About Frequent Flyer Miles)

Reservation Changes and Cancellation Fees

Changes to your reservation usually result in extra fees, anywhere from $30 to $200.

Booking Over the Phone

Expect an extra fee (approximately $30) to make your reservation over the phone as opposed to online.

Travel Insurance

Some airlines automatically add travel insurance to your booking, requiring you to specifically deselect it (provided you see the charge in the first place). Read everything carefully before you pay for your flight.

Airport Parking

I used long-term airport parking once (the weekly rate was reasonable); imagine my surprise when I was charged double the weekly price because I stayed one extra day.

Baggage Fees

Some airlines charge extra even for carry-on bags. Depending on how exorbitant the baggage fees are, you might want to ship your baggage separately. To reduce checked baggage fees, fly with carry-on only. (See also: The Ultimate Carry-On Packing List).

Oversized and Overweight Baggage

Even if the airline doesn't charge for baggage, they will penalize you if your bag is overweight or oversized.

Water

You can't carry water through security, and the price of bottled water on the other side is often higher. I carry an empty water bottle with me, and if I can't fill it anywhere in the airport, I ask the flight attendant to fill it on the plane. Added benefit: You're saving on wasteful airline cups.

Airline Meals and Drinks

The more budget the airline, the greater the chances are that you'll pay for meals, snacks, and even drinks (including non-alcoholic drinks). (See also: 15 Easy-to-Pack Airline Snacks)

Pets

To fly with a pet, you must call the airline directly to ensure they have a spot available (they only allow a certain number of pets on a plane). This means you'll likely incur a charge to book over the phone in addition to any charges to bring your pet.

In-Flight Movie/Entertainment Devices

Some airlines charge for headsets and/or entertainment devices to watch movies. (See also: How to Budget and Track Expenses for Your Vacation)

Pillows and Blankets

Best to bring some warm clothing to wear on the plane and/or use as a makeshift pillow; having to pay to rent them is a low blow.

Hotels

Sometimes you won't be aware of hotel hidden fees until it's too late and you're presented with a bill on check-out. Here are some precautions you can take to minimize these fees. (See Also: Is Your Hotel Hiding These 5 Fees in Your Bill?)

Goodies Outside the Minibar

Everybody knows to stay away from the minibar and its exorbitantly-priced snacks. But hotels will sometimes place bottled water or a snack in another part of the room to make it appear complimentary when it's not.

Parking

If you've got a car, always check on the parking rates before you book.

Towels

Some hotels charge extra for pool, gym, or beach towels. Super budget hotels or hostels may even charge for bath towels and soap.

Currency Conversion

I recently needed to change a small amount of cash. When I tried to do this at the hotel's front desk, they said I could do it way less expensively elsewhere. I was lucky to have the warning; most times hotels won't afford you that courtesy.

Phone Calls

Don't do it. Just don't. Making calls from your room (to any outside line) generally costs an arm and a leg.

Car Rentals

Have you ever rented a car and ended up with a bill that is double the rental rate you booked? Here's why. (See also: 10 Easy Ways to Save on Your Next Car Rental)

Insurance

Insurance fees can easily double your quoted rental rate. Before you accept their exorbitant insurance, check to see if you have automatic coverage either through your personal auto insurance policy or your credit card.

Key Replacement

Don't lose that key or accidentally go swimming with the fob!

Fuel

You're required to return rental cars with the same amount of fuel as you left with. If you choose not to, the rental company will gallantly refill the tank for you — at a premium.

Extra Drivers

Expect a fee for each extra driver registered on the rental.

Age

If you're under 25, you'll likely pay a surcharge.

Accessing and Converting Money

Accessing cash and converting currencies involve cryptic hidden travel fees. Here are some of the worst culprits.

Credit Card Conversion

Most credit cards charge an automatic conversion fee, averaging 2.5% of the transaction amount. Some vendors give you an option to charge the expense in your home currency; beware! This usually entails even heftier (entirely hidden) conversion charges. (See also: Best Travel Reward Credit Cards)

Debit and ATM Conversion

Your bank is also in on the swindle; debit purchases and ATM withdrawals have hidden currency conversion fees, which are taken off the top and calculated as a percentage of the transaction amount.

ATM Withdrawals

In addition to currency conversion, your home bank often will often charge you when you use a foreign ATM, as will the foreign ATM machine/bank. One simple withdrawal can cost up to $10 in combined fees.

Direct Debit Charges

Depending on your bank, you might be racking up per-transaction fees every time you use your debit card for a direct purchase on the road. (See also: Using Your Debit Card on the Road)

Credit Card Advance Fees and Interest

I've visited a few places where my debit card didn't work in ATM machines. I was thus relegated to making withdrawals with my credit card. Not only is there a credit card advance/withdrawal fee, but also, from the day you make the advance, interest accumulates (without the usual grace period as with traditional credit card purchases) — on your entire credit card balance. Imagine my surprise when my statement came two weeks later, and I was slapped with a $5 withdrawal fee and $85 in interest charges. (I always pay off my card in full each month; that was simply compound interest on my purchases that month).

If you must do a credit card cash advance, go online immediately and pay off your card in full to avoid the interest. (See also: Using Your Credit Card on the Road)

Traveler's Cheque Commissions

Traveler's cheques are accepted in fewer and fewer places. And although they're among the least expensive ways to access your money abroad, they're not free of fees, which are generally hidden. Some vendors also charge extra for you to pay with traveler's cheques.

Converting Cash

Beware of airport currency exchange counters, which are the most convenient and also the most expensive with hefty hidden commissions. Local bank branches or currency exchange counters in the center of town are usually better options.

General Hidden Travel Fees

But wait — there's more! Here is a collection of random travel expenses you might not have considered.

Cell Phone Roaming

You could end up with hundreds — if not thousands — of dollars in roaming fees in using your cell phone abroad. A $150 10-minute phone call was my hard-earned lesson here.

Now when I travel, I buy a local pay-as-you-go SIM card and insert it into my unlocked phone.

Payphones

You know those payphones in airports that allow you to insert your credit card to make a call? Don't do it. That was another $150 mistake of mine.

Tips

Some restaurants in tourist hot spots include gratuity automatically (especially if you're traveling in a group). And they don't point it out; they're hoping you'll miss it and tip on top of it! Scrutinize your bill before you tack on a tip.

On cruises, the gratuity is often added to your bill at the end; don't be surprised at an extra $30 per day, to cover tips for housekeeping and restaurant staff.

Travel Visas

Depending on where you go, you may have to apply for a visa to enter the country, which can be pricey. This isn't a hidden travel fee per se, but it might surprise you if it's not in the budget. If you use a travel visa service, the cost will be even higher (but you will save on time and frustration).

Pet Care

If you're leaving pets at home, you might need to pay somebody to care for them. Alternately, save your pennies and put your home and pets in the loving hands of a house-sitter, or consider a home exchange. (See Also: 10 Tips for Landing the Perfect House-Sitting Gig)

Wi-Fi

From hotel Internet to airport connections to in-flight Wi-Fi, the Internet isn't always free. In some hotels, the Wi-Fi is free in the lobby and common areas, but you pay for it in your room.

Departure Tax

Don't get caught out at the airport at the last minute by departure tax! Although sometimes it is included in the cost of airfare, other times you'll need to pay up before you can leave the country. And in many cases, they only accept cash.

Have you ever been caught out by hidden travel fees? What were they?

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This article is from Nora Dunn of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Real Estate Clauses to Watch Out For

Julie Rains — Mon, 07 Feb 2011 21:44:26 +0000

Link:

http://www.openforum.com/idea-hub/topics/money/article/9-real-estate-clauses-to-...

A real estate clause for a property I was investigating gave me sticker shock. I could easily calculate and understand the present value of a stream of loan payments for purchased space, and its comparison to monthly rental amounts on leased space. What surprised me was that the add-on charges alone for space owned in an office building could exceed the all-inclusive lease expense. The culprit was common area maintenance (CAM) fees.

I learned that the expenses for maintenance and periodic improvements of commercial space (office, industrial, or retail) can be high, especially for properties with expansive common areas and manicured grounds. These expenses may be shared among property owners or passed from developers and landlords to tenants.

Developers selling new space and landlords leasing existing space will rightly protect their financial interests. Preserve your financial well-being by being aware of their techniques. Here are some fairly standard clauses to consider as they can add significantly to your business’s operating costs:

1. Common Area Maintenance

Whether a business leases or owns space in an office building, industrial park, or other space, CAM fees may be charged. Similar in concept to homeowner association (HOA) fees, these cover expenses to maintain common areas such as lobbies, elevators, kitchens, break rooms, and restrooms.

Proper upkeep is essential to sustaining desired aesthetics and preserving property values, so developers and owners are not likely to skimp here. They may forecast these expenses and charge flat fees based on estimates, add a percentage to base rent, or use another formula.

These fees may be referred to as a load factor, indicating the allotment of cost based on the square footage that your business occupies.

2. Rent Escalation

Lease agreements typically include clauses that allow the landlord to charge more than the originally agreed-upon monthly rent to cover increasing costs of building ownership and operations. There are several types of escalation clauses that specify the method of calculating this incremental increase.

Generally, the lease agreement should include just one of these types of clauses, such as CPI Escalation or Operating Expense Escalation. The CPI escalation calculates increases based on the consumer price index, theoretically reflecting higher costs throughout the economy and easily tracked so that your business can verify the reasonableness of these charges.

Operating expense escalations reflect actual increases in the landlord’s costs. These may be associated with security, housekeeping, insurance, property taxes, facility repairs, maintenance, and utilities. This approach should require tracking and reporting of these fees with indication of the amounts that have risen above base amounts. This type of escalation seems reasonable but may serve as a disincentive to cost control.

3. Special Assessments

The cost of improvements to infrastructure, such as major upgrades to heating and air conditioning systems, parking lots, and sidewalks, may be passed along to tenants or part-owners, separate from CAM fees.

4. Hours of Operation

Leases for retail space in particular may require that businesses observe certain hours of operation including extended hours during holidays and special events. Staffing with qualified employees may overload payroll expenses, especially if foot traffic is not particularly heavy for your business.

5. Design and Other Operating Requirements

Complying with requirements that are aimed at standardizing the overall look and feel of a property can add expenses. These specifications are most likely relevant to leasing of retail space and may cover issues such as signage, merchandise displays, and posting of exchange polices. There may also be restrictions relating to day-to-day operations such as timing of inventory restocking and methods of trash disposal.

6. Add-On Charges for Sales

Retail leases may require payment of add-on charges equal to a percentage of sales that exceed a certain level or break point. These fees may run 3-15% of sales after the business’s volume has reached this designated amount. Compare your forecast with this threshold to anticipate whether your business will incur these charges, which will significantly erode profit margins.

Obviously, your business should already be tracking and reporting sales for internal purposes; nevertheless, having to prepare sales reports for your landlord requires expending hours to generate a report in a standard format and adhere to a schedule. Sales reports and supporting documentation may be audited and being out of compliance makes your business subject to deficiency fees.

7. One-Time Charges

Signing a new lease or purchase agreement may trigger start-up fees for administrative set-up, announcements relating to your business’s opening, and links to your website from the property’s website. These may have exorbitant mark-ups; for example, a website link on a mall directory may incur a fee of over $500.

8. Build-Out Fees

Property developers and landlords will often need to customize spaces for tenants. If your business is expected to pay a hefty amount for lease or purchase, then you may feel that basic build-out (e.g., installation of lighting) should be included at no charge or a flat fee. Developers and owners may think otherwise. Check allowances for build-outs because getting the space into working condition may be much higher than expected.

9. Insurance

Landlords will often require insurance coverage at designated amounts as a way to ensure protection for your company and theirs. Generally, you may be asked to carry liability and property insurance to cover potential claims for property damage or on-premise personal injury.

After considering all the benefits and all of the costs of a real estate purchase or lease, make your decision about what your business needs and can afford.

This article is from Julie Rains of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Avoid Bank Fees

Philip Brewer — Fri, 28 Aug 2009 20:00:01 +0000

I don't pay any bank fees, except rental on my safe deposit box. That leaves me of two minds about the fees. On the one hand, I feel bad because the fees tend to fall hardest on the people who can afford them the least — the poor, the ignorant, the stupid, the careless, the lazy, and the unlucky. On the other hand, the fees other people pay help cover the costs of the many free services that I get from the bank. (See also: 7 Banks Still Offering Free Checking and Great Interest Rates)

Economic research firm Moebs Services just announced results from a survey that indicated that fees are now providing the bulk of bank profits. In fact, at almost half of all banks, overdraft fees alone exceed total bank profits.

Banks use a lot of tricks to maximize the fee income. In particular, they process the largest checks first. If one big check overdraws your account, the bank can then charge an overdraft fee on every check that clears. If they processed the checks in the opposite order, they might only be able to charge the overdraft fee on the last one. (Another trick is to add new fees with little fanfare, so that you don't know you're paying them until you check your bank statement.)

Most people are like me, paying little or nothing in the way of bank fees. For example, according to an FDIC report last year, less than 14% of all bank customers pay over 93% of the overdraft fees.

Although the poor tend to get hit most with fees, it isn't primarily the poverty that does it. The key to avoiding bank fees is keeping your finances under control. The only way that just being poor exposes you to fees is that the narrower the gap between your income and your expenses, the harder it is to keep your finances under control. You have less room for error and are more vulnerable to simple bad luck. But being poor tends to be associated with other things that make it tougher to avoid bank fees.

If you're poor, you can't afford to keep a large minimum balance. If your parents were poor, they may never have learned that it's not necessary to pay ATM fees and bank transfer fees and fees to check your balance and fees to talk to a teller. And whole categories of poor people are not only poor — they're poor and they don't speak English, or they're poor and they come from a cultural background that doesn't trust banks. These people easily fall victim to predatory firms that charge huge fees for services like check cashing and small loans.

So, poor or not, how do you avoid bank fees? After the obvious things — don't overdraw your account and don't go over the limit on your credit card — the most important step for avoiding bank fees is to read the stuff from your bank and understand what services are free and what services aren't. Every bank makes many services available free to certain customers — you just need to make sure that you're one of those customers.

Common Special Deals

Bank fee structures are, of course, ridiculously complicated. Most banks have multiple fee structures, depending on things like what kinds of accounts you have, which services you use, minimum balance, and even age (seniors often get good specials; students often get crappy ones). There are a few practices that show up pretty often, even if they're not universal, so it's worth being aware of them.

High minimum balance

Lots of banks offer no-fee deals for people who keep a certain minimum balance. (At some banks there are several tiers of these.) With interest rates as low as they are now, it costs very little to leave some cash lying around in your checking account. It'd take a couple years for the lost interest from having $1000 sitting idle in your checking account instead of in an internet savings account to add up to as much as just one bounced check fee.

Packages of accounts

Lots of banks offer package deals, where certain fees are waived if you get a certain group of accounts (savings, checking, line of credit, etc.). The idea is that if they can pull in a certain critical mass of your financial activity, it'll increase the chance that you'll use them for other, high-profit services like your mortgage and your IRA.

Packages of services

Many banks have long waived some fees if you have your paycheck directly deposited into the bank. More recently, some banks have started offering higher rates to people who agree to some minimum number of debit card transactions. Others offer deals to people who use the bank's bill paying service.

Any of these can be a excellent deal if the packages or minimums happen to match how you were going to arrange your finances anyway. The banks are all a little different, so look around and see if you can find one that's a good match.

This is another place where the poor tend to get nailed: If they live in a poor neighborhood, they probably don't have a dozen different local banks to choose from, reducing the chance that they can find one that offers a deal that matches their circumstances.

Other Financial Fees

Because there's so much money in fees for financial services, everybody is trying to get in on it — including states. Many states have started making cash assistance (unemployment, food stamps, etc.) available via a debit card — but a debit card that comes loaded up with fees: fees for using an ATM, fees for checking your balance, fees for trying to charge more than is left on your card. There are even fees for not using your card! (That probably doesn't deserve an exclamation point — lots of kinds of accounts have inactivity fees these days — but I still find it shocking.)

Like with other bank fees, most of these are avoidable if you understand the rules, and not too onerous as long as the cash assistance isn't your only source of income.

The easiest thing to do for things like unemployment insurance where you're allowed to get the money as cash, is to do just that. You typically get one free cash withdrawal per month at an in-network ATM. Use it to get all the money out and put it into your regular bank account. If you're not allowed to get the money as cash (as with debit cards for food stamp benefits), you can minimize fees by treating it like an ordinary debit card — track each transaction and keep a running balance so you don't have to pay a fee to check the balance. Then, use the card to pay for whatever's allowed until the money runs out.

Avoiding fees is pretty straightforward for people whose finances are under control. They know what services they need, so they can shop around and find out which banks offer those as free services (with which kinds of accounts). They pay attention to things like which ATMs they can use for free. They keep track of their balance and don't overdraw their account. If they need a service that isn't free, they shop around to find where they can get it cheapest.

It's not that much work to nail down all these details, and over time it can save a fortune in fees.

This article is from Philip Brewer of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Dirty Secrets of Credit Cards

Paul Michael — Thu, 08 Mar 2007 00:02:22 +0000

The average American household carries almost $16,000 in credit card debt (only counting indebted households), according to a recent study by Nerdwallet. If that’s not bad enough, the credit card companies are involved in what can only be described as a conspiracy to keep Americans in debt, permanently.

I watched an incredible PBS documentary online last night called “Secret History Of Credit Cards”. You can watch the 5-part eye-opener here at your leisure. But if you don’t have an hour to spare, here are some of the biggest dirty secrets for you. You may want to sit down for these.

1. Minimum Payments Are Ripoffs

The minimum payments banks require on your monthly bill are not regulated. Banks are required to set minimum payments that will allow borrowers to pay off the debt in a "reasonable" amount of time, but after that, it's up to the banks to calculate their own minimums. The result is often minimums that shave only a few percentage points off the principal, which extends the time borrowers pay interest. Here's an example. Let's say you owe a modest $2000 on a card with a decent interest rate of 13% and a minimum payment based on paying 2% of the principal. Your minimum payment would be a mere $40, but it would take you almost 15 years to pay off the balance! Before that debt is retired, you will have paid the bank $1813 in interest. Cha-ching.

2. A Late Payment Can Skyrocket Your APR

Before the CARD Act became law this was really bad, and thankfully, that law has mostly eliminated the practice of "Universal Default," which allowed banks to hit you with a skyhigh APR if you were late paying any creditor, not just your credit card company. And while things are definitely better, the banks can still bump your APR to 25% or 30% or even higher if you make even one late payment. This "Penalty APR" will be noted in your card agreement and will be applied to all new purchases. If your payment is really late, 60 days or more, the bank can apply the penalty APR to your existing balances, too. (Ouch!) Card issuers are required to review any account that has been slapped with a Penalty APR after six months of on time payments, but that's no guarantee the Penalty APR will be reduced.

3. Late Payments Can Cost You More Than a Late Fee

Have you seen the credit card commercials that claim cardholders won't be charged a fee if they make a late payment, especially if they've been good customers? First of all, every cardholder should know that it's easy to get a late fee waived: Just call and ask. Every cardholder should also know that a late pay can hurt in other ways, too. For one, if you've been avoiding interest charges by paying your balance in full each month, a late payment will immediately incur an interest charge on your balance, and it may take two billing cycles for the grace period to get put back in place. Depending on how late you are, the bank may report your account to the credit bureaus as a late pay, dinging your credit score. If the account has been open for a year or more, the bank could apply the Penalty APR to future purchases. Finally, every day you're late is another day you're paying interest on that debt.

4. There Is No Federal Limit on Interest Rates

Don’t you find it odd that in a time of very low interest on anything from car loans to mortgages, credit card companies can hand out APRs that embarrass loan sharks? Well, it’s not unusual to see 34.99% APRs, especially as a penalty rate, and the reason is simple. Most credit card companies reside in states like South Dakota or Delaware, states that have very weak or even no “usury laws.” So, there’s no cap on interest. By law, there’s nothing to stop them charging whatever interest they want. Here’s a map that links to the locations of top 10 credit card issuers.

5. Grace Periods Are Getting Shorter... or Being Eliminated

There's nothing in the law that requires banks to offer a "grace period" on purchases before charging interest. It's a holdover from the beginnings of the industry. Still, most cards continue to offer them as a perk, and it really is a good deal for consumers, as long as they pay their balances in full and on time. Slip up and leave a small balance for next month, however, and you'll lose your grace period and start incurring interest from the moment you make a purchase. Worse, it can take two months of paying balances in full to reinstate the grace period, if it can be reinstated at all. Check your card agreement and pay off those balances!

6. Cash Advances Hit You Twice in the Wallet

First, as I’m sure you know, you’ll get a different, higher APR applied to your cash advances. But you also get hit with a transaction charge, around 2.5%. Even credit cards that confidently announce “no finance charges” can still bill you for these transaction charges.

7. Good Payers Are Called "Deadbeats"!

Deadbeat – it’s what credit card companies call those folks who are responsible and pay off the balance each month. They don’t like those people, not one bit. That’s because they make little to no money off of them. No, credit card companies like you to carry a nice hefty balance and pay only the minimum each month. If you’re one of those people, known as ‘revolvers’, you’re part of the crowd that contributes roughly 90% of the credit card company’s income. What a crazy upside-down world credit is.

8. You Can Demand, and Get, a Better Deal

APR too high? Hate the annual fee? Want a longer grace period? It turns out your credit card company may just have to do your bidding. See, the fees they charge are not considered a necessary cost of doing business, so you can request, firmly, that they be reduced or eliminated. Now, imagine what would happen if we all did that? No wonder they want that one kept secret. And remember, if all else fails, find a lower cost APR card and transfer your balance. You have at least that going for you.

That’s the scoop, folks. If you happen to be in spiraling credit card debt, there are places you can go to for help. PBS has a great list of resources right here. And from now on, I hope you all look a whole lot closer at that handy piece of plastic in your wallet. It’s far more ominous than it first looks. Pleasant dreams everyone.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: