SPEND RESPONSIBLY - Reduce your bank fees
Cutting the cost of lines of credit
Lines of credit are like a personal overdraft. You have a predetermined credit limit that can be redrawn at any time. While these facilities can be extremely useful, like all forms of credit they should be used wisely – and this includes keeping fees to a minimum.
Trimming exception fees
The terms and conditions of your line of credit will explain the sorts of exception fees you could be charged. The most common fees are outlined below:
Having insufficient funds in your account to meet a regular repayment can result in a ‘dishonour fee’. Checking your account balance regularly, particularly if you make a payment by cheque, or if you anticipate a direct debit payment, will help to ensure your account has adequate funds to cover the payment.
Late payment fees
Your line of credit statement will specify the amount required to be repaid each month - and when the payment is due.
Missing this repayment date may result in a ‘late payment’ fee.
The best way to avoid this fee is simply by reviewing your statements each month, noting the due date and ensuring you make this repayment on or by the due date.