The Sneaky Ways You're Losing Money On Vacation

Illustrated by Daniel Koppich.Even the tightest budgets are rarely air-tight. Maybe you don’t overspend on groceries or entertainment, but you do end up paying for fees you were never expecting. Consumers are dinged with hidden fees almost everywhere they turn — from bank fees you almost never notice in your monthly statement to unexpected travel fees. In 2012, Americans spent $18 billion on credit card late fees alone, and while late fees aren’t necessarily disguised, they are part of the unbudgeted dues we pay for every month.



Just because these extra fees are often “hidden” doesn’t mean you should act like they don’t exist. In fact, by looking closely at what you’re paying on a regular basis and taking action to cut them down (or cut them out altogether), you could save yourself a bundle. Here’s a look at six common areas where you may be paying fees and siphoning money out of your budget without even realizing it.



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One percent of bank profits from consumer checking accounts come from overdraft and insufficient funds fees, according to the Consumer Financial Protection Bureau. These fees are prompted when customers withdraw, make a debit card payment or make or attempt to make another type of payment for more than what is available in their accounts. But, overdraft fees aren’t the only extra fees consumers are paying to banks: The Great Recession signaled the end of many “free checking” accounts, so plenty of us pay a monthly fee for our checking accounts (either if you fall below a minimum balance or period). And, because most banks charge fees when non-customers use their ATMs, you may pay your own bank and the other bank if you make a withdrawal from an outside ATM.



Simple fees for having a checking or savings account can range from $15 to $25 per month, says Cristina Briboneria, CFP, vice president of Atlanta-based oXYGen Financial, Inc. No one should pay an extra $180 to $300 a year just to hold your money, she says.



In most cases, you can avoid paying fees for your checking and savings accounts by using your debit card monthly, linking your credit card for overdraft protection, carrying a minimum balance, or setting up direct deposits to your account. You may also avoid such fees by opening an account with a small regional bank or credit union, which can also give better interest rates on loans because they don’t have high overhead costs, Briboneria says.



If you need to make a withdrawal, try to use your own bank’s ATM to avoid fees. If that’s not possible, “head to a store like CVS that offers cash back for free and pick up a small item like gum,” says consumer and money saving expert Andrea Woroch. And, if you overdraw your account, as long as it’s not a habit, call your bank’s customer service hotline and ask if they can waive the fee. For customers who don’t abuse the privilege, many banks will reverse those charges.

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