Buzz
Throughout our lives, we’re constantly nickeled and dimed. There are the essentials (or desires) we must pay for, and then there are the fees that get tacked on top of those prices: things like mysterious hotel charges, exorbitant airline fees, punishing car rental costs—the list is endless. What really stings about these fees is the sense of being manipulated—we're expected to pretend that this isn't just a money grab layered over the agreed price.
That said, some fees are far more infuriating than others. While it’s impossible to avoid every fee imposed by our capitalist overlords, there are many ridiculous fees you can steer clear of—and you should never agree to pay them.
Coinstar charges
If you've yet to adopt a cashless lifestyle, you're likely still wrestling with the ever-growing mountain of loose change that piles up in your pockets throughout the day. Eventually, you end up with a jar full of coins, and when your paycheck is stretched thin enough to see through, that loose change starts to appear like real money. And then there's the Coinstar machine at the local store...that will take almost 12% of your coins' value in fees.
The term scientists would use to describe that fee is outrageous. To bypass this charge, you have two options:
Gift card. Coinstar allows you to exchange your coins for a gift card instead of cash, and there’s no fee for choosing this option. While the gift card choices are limited, they hold the same value as cash as long as you're buying from the participating retailers.
Bank. Most banks won't offer coin-counting services and will kindly turn down a pile of dirty pennies. However, you can usually get coin rolls from them for free (just ask!) and roll the change yourself. Once the coins are properly rolled, you can easily deposit them into your account. Though it’s time-consuming, a reasonably priced coin counter will soon pay for itself.
ATM fees
Being charged a fee to access your own money is one of the most ridiculous charges ever, but ATM fees are almost unavoidable when you're in need of cash and stuck with a sketchy ATM at a 7-11. However, you can take a few steps to eliminate these fees—primarily by moving your funds to a bank that reimburses these charges.
In a tight spot? One workaround could be asking the store if they can give you cash back when you make a purchase. Of course, this only makes sense if you're actually buying something you need from that store—otherwise, it's just a fee disguised in a quirky way.
Credit reports
If you're not already reviewing your credit reports annually, it's time to start. Identity theft can go unnoticed for a long time, and even honest errors on your report can seriously damage your credit score and life. But if you're ever asked to pay for a credit report, don't fall for it—by law, all three major credit bureaus (Equifax, Experian, and TransUnion) are required to give you one free report per year. Just visit AnnualCreditReport.com to get started. Some banks and credit card issuers also provide free credit reports to their customers, which can give you an additional report—because you can never have too many.
Late fees
Paying late fees on credit cards or other credit accounts is simply avoidable. While paying only the minimum balance isn't ideal, it's still much better than letting a hefty late fee be added on top. Setting up automatic payments is a wise choice—it ensures you won't miss a payment, though you can still manually adjust the amount to pay more than the minimum. That way, even if you forget, you're protected from unnecessary fees.
If you happen to forget or make a scheduling error that results in a late fee, don’t hesitate to reach out to your lender. If it’s your first time being late, they may be willing to waive the fee if you explain the situation.
Most car dealership fees
Buying a car can feel like a draining, demoralizing ordeal for many. Visiting dealerships, dealing with pushy salespeople, and trying to navigate a maze of options is enough to wear anyone down. To make matters worse, many dealerships tack on unnecessary fees to your purchase. Advertising fees, delivery fees, and undercoating fees—just a few of the extra charges that make car sales feel like a game. The silver lining? You can often get these fees removed by simply asking about them—once you point them out, they tend to disappear.
Gym initiation fees
If you’ve ever joined a gym, you've probably noticed an 'initiation fee' included on your first bill. This is a typical example of a ridiculous fee, designed solely as a cash grab.
To avoid paying this fee, simply ask about it when you're checking out the gym, then request that it be waived. Gyms often face pressure to meet membership targets since people join and leave frequently. Many of the salespeople trying to get you to sign up have quotas to meet, which means they’re usually willing to eliminate the initiation fee if you make it a condition for committing to a yearly membership.
Investment fees
If you’ve set up an individual retirement account (IRA), great job. Setting aside tax-deferred money for your retirement is a smart move, and an IRA is a relatively safe and straightforward way to make that money grow. However, be wary of account maintenance fees. While these might seem small, keep in mind that the institution managing your funds is already profiting off your balance. Maintenance fees are just excessive. You can transfer your IRA to a different account at any time, so consider finding a provider that doesn’t charge fees—or contact your current bank or financial advisor and ask them to waive the fee. Most would rather keep your business than lose it over a small fee.
Car insurance processing fees
Owning a car brings with it a variety of costs. In addition to fuel, maintenance, and depreciation, there’s also the expense of car insurance. If you opt to pay your insurance monthly, your insurer may charge you a “processing fee” for the privilege. This fee helps cover their costs, as every time they process your payment, they incur a charge on their end.
If possible, paying the entire premium upfront will save you from that processing charge. However, if you can’t manage a lump-sum payment, you’re likely stuck with the monthly processing fee.
Mortgage fees
Buying a home is costly. Beyond the down payment, you’ll be paying interest on your mortgage as well as closing costs. The total adds up quickly.
That’s why you need to be careful about avoidable fees that some lenders bundle into your mortgage. Application fees, underwriting fees, rate lock fees, and various mystery processing charges can pile up, adding significant costs to your loan. The most important thing to keep in mind is that you are negotiating. There are many lenders available, and unless you are urgently seeking a specific home or have a strict deadline, you can shop for the best deal. This means you can—and should—ask your lender to reduce or eliminate these fees. While you may not get all of them waived, even a few reductions can make a big difference.
Utility card processing fees
The world is moving towards a digital-first approach, and many services are going paperless. You may no longer receive physical bills from your utility providers, and when you opt to pay online, you’ll often encounter a processing fee for using a credit card.
However, there's no need to pay these frustrating fees. Most utility, water, and sewage providers allow payments through e-checks or direct bank withdrawals. E-checks work just like a paper check—you simply enter your routing and account numbers, and the bank processes the payment accordingly. While it may take a few minutes to set up, it’s a safe and fee-free way to keep your accounts in good standing.
Overdraft charges
Banks often present “overdraft protection” as a helpful service. If your account balance runs out, the bank steps in to cover the extra amount, preventing bounced checks or declined transactions. This convenience comes at a cost, usually a fee under $50.
Yet, if you're only slightly overdrawn, a $50 fee can seem excessive. Rather than relying on your bank's overdraft protection, consider linking your savings account to your checking account so funds are automatically transferred when needed. If that’s not an option, simply disable the overdraft protection and stay informed with low-balance alerts available through your bank’s app.
