Make prompt payments to dodge credit card debt
Many households are paying up to 30 per cent more in bank fees than necessary, according to the latest figures, much of which can be attributed to credit card debt.
The Australian Bankers’ Association’s (ABA) assertion follows a recent report from the Reserve Bank of Australia which assembled information regarding the amount paid out by households each year in bank fees, according to bankers.asn.au.
Chief executive of the ABA David Bell told the website: "The fees which could be avoided are $954 million-worth of exception fees."
However, he added that households could save even more than the estimated 30 per cent by taking common sense steps including switching to low-cost accounts.
Further money-saving tips from Mr Bell included using your own bank’s ATM to avoid additional charges, not going overdrawn and paying credit card purchases off on time.
Overdraft charges and fees for unpaid credit card payments cost Australians approximately $1 billion each year, according to the Sydney Morning Herald.
Last year Australian banks charged Australian citizens over $1 billion in charges for overdrawn accounts and unpaid credit card fees, according to the Sydney Morning Herald.
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