If you find yourself facing a large amount of credit-card debt, you'll want to implement a strategy for paying it off as quickly as possible.
While you do this, it's critical to pay attention to any fees that are adding to your problem.
Here are some of the most common credit-card fees:
- Annual fee: Charged once per year, an annual fee can be as high as $500 to $1,000.
- Balance transfer fee: A balance transfer is a great way to secure a credit card with zero percent introductory rate, but it doesn't come free.
- Finance charge: When you carry a balance from one month to the next, you're charged interest on the total amount. This is why it's so important to pay down your debt.
- Foreign transaction fee: If you use your credit card outside the country you could be hit with this fee, which can quickly add up over the course of a trip.
- Late fee: You're expected to pay your credit card on time. If you don't, your issuer has the power to charge a late fee.
- Over the limit fee: If you charge more than your limit, it's likely this fee will come into play.
While there is no avoiding some of these fees, don't forget that you can always contact your credit card company to ask for them to be removed. For example, if you're never late paying your bill, your issuer may agree to waive a late fee the first time.
If your credit-card debt continues to worsen, despite your best efforts, you may want to consider eliminating it through a bankruptcy filing.