Credit cards – Credit card feesThe moment you get you first credit card bill you are exposed to the endless world of numbers which comprises of a long list of fees that you end up paying your credit card provider every month. These may include fees right from annual fees to, penalty fees like late payment fees, over limit charges, cash advance fees and so it goes on and on.

A fortunate few just end up paying this long list of fees just once or twice during the major span of time they use a credit card. But more common are the ones who end up paying one or more or sometimes all of these fees every other month.

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The whole computation is so complicated that most people take ages to decipher it and by the time they do they would have already joined the huge list of Americans suffering from credit card debt. A survey conducted recently that new users are the ones who end up paying more fees to their credit card providers than seasoned users. The study that was undertaken to find out whether being seasoned users cause a significant difference in the amount of fees that you would need to pay indicated that new users on an average pay an extra of 15 dollars more than old users of credit cards.

The reason behind this is that it takes quite some time for credit card users to find out the way their plastic works. In fact the same survey revealed that the fees start reducing by an average of 75 percent within the first four years of using the credit card. This can be attributed to the experience that a user gains after using a credit card for some time. When a user buys a credit card for the first time in their life they are in no way aware of what happens beyond the actual nice and smiling face of credit card providers. It is only as time progresses that these numerous menacing faces come into the picture in the form of cash advance fees, late payment fees and default charges.

Credit Card Fees – What can you do about this?

The process starts from the moment you make a decision about getting a credit card. It is important that this decision is taken with a lot of caution because the credit card you use should be one that will not prompt you to spend unnecessarily. It should ideally also take as minimal fees from you as possible. So it is crucial that you read the terms and conditions document in great detail so as to know what you are getting into.

This is something that has to be practice with great diligence from the moment you get your first credit card bill.

If you have the confidence that your bill will be within the limits that you can afford every month then it is best that you set the automatic payment for it so that you can be guaranteed of making payments dot on time.

If you do not have the means to make the payment fully then make sure that you at least make the minimum payment so that you do not encounter late fees.

The survey proved that the troubles associated with not paying your dues on time would prevent you from making the same mistake all over again.

This may be true but would it not be better to make the mistake at all if it is as serious as it sounds.

The next common mistake that new credit card users make is to make huge volume purchases on their credit cards. One reason for this is the excitement in owning a new credit card for the first time.

The other more common reason are that they fall blindly for the cash backs, discounts and offers associated with a high volume first purchase that most credit card providers commonly offer for all their credit cards irrespective of the credit card type.

It is important to reafrain from using credit cards for purchasing electronics, consume goods or other high volume purchase before you really learn to handle it well because that would be the simplest way to run into credit card debts.

A credit card company will give you an offer or a perk only if they are sure that you would be worth the value of that benefit.

So it would not be a wise decision to spend for the sake of an offer or a reward.

After all however big or attractive the reward may be the bill comes to you every month and you would need to shell out cash for it from your hard earned income.

CREDIT CARD FEES – WHO PAYS MORE CREDIT CARD FEES- NEW USERS OR OLD? is a post from: Credit Card debt help online News