Within personal finances you have to try to save as much as possible. Also in financial products.
In financial planning and the budget that you set, it is essential to reduce expenses as much as possible. And that, indeed, happens by looking at everything you use. Beyond savings, the money that comes out of your account also matters.
Here comes the always important chapter of the commissions that are paid to the bank: from the use of credit or debit cards, to current accounts. Cutting costs then matters for achieving financial goals, optimal financial health, and collaterally achieving financial freedom.
Taking this chapter into account, credit card commissions are the order of the day and more and more customers are fleeing from them in search of other alternatives. But how do you avoid these charges? What other options are there on the market?
Ways to avoid credit card fees
The credit card is a product with which you can make certain payments up to a certain limit, without having that balance in your checking account. In addition, it allows the installment of payments in months or adapt them to your needs in exchange for a specific interest.
The question is, do you apply commissions?
One of the main problems of this type of card is, indeed, the commissions that affect the client. There are banks that offer them "free" in exchange for a series of requirements that customers must meet.
An example would be that you can be exempt in exchange for direct depositing your salary, having an average balance of 2,000 euros, and a long etcetera. Such requirements depend on the banking entity and without differences in different cases. Therefore, you should read it in the contract with your particular bank.
And what is the average amount of these commissions? On average, about 20 euros are charged on average per year in commissions for credit cards. It is an important cost that is passed on to the customer for having this type of card. For this reason, before hiring it, ask for the specific costs.
Likewise, the main problem with this type of card is the negative consumption habits that it can generate.
There are clients who misuse it, spending more than they can afford and entering a spiral of debt that they find difficult to get out of. Once they start, they can't stop at any time.
That is why, despite having these cards, it is important to be careful and control what is entered and what is spent.
But there are alternatives. So much so that you can live perfectly without a credit card.
One of the main options is to use a debit or prepaid card. These are very popular modalities in which you pay with your balance and it is discounted at the moment. They are the safest options.
Also, opt for fast financing: there are businesses that implement this type of alternative to a credit card, to pay in installments without having one.
In this line, requesting a loan can be a solution. In the event that you need to make a large payment, you are still interested in a loan instead of paying little by little and later through the card. Also, you can request a higher amount than with the card and distribute it over different months. Compare all the interests that are going to apply to you.
The last ace in the hole
The last bullet you have left may be trying to negotiate with your bank. Surely you have already done it with your telephone company on some occasion and this cannot be less. Years of seniority in the bank may be your most reliable strategy. This will probably help the bank agree to negotiate the costs of the products that we do not want to pay for.
But it must be said that the vindictive mode does not always work as you expect and you may not achieve your goal. Although, with a bit of luck you will save a good peak in commissions and that is always extremely positive.
