Related Services - The following company listings on the Debt Consolidation Loan Directory are offered to assist you with handling your credit card bills and other monthly payments. Also, in addition shop for other financial services ranging from credit card offers to home and car insurance.
- Debt Consolidation Services - Learn more on how debt consolidation can work for you and compare a detailed company list of lenders and related services offering help to people that need to consolidate debt.
- Personal Loan Companies - Looking for a personal loan to consolidate your credit cards? These loans are usually unsecured, meaning you are not required to provide collateral. Approval is often based upon factors as your income, credit and job history.
- Debt Settlement Program - Are you finding yourself unable to meet your monthly budget because of too many credit card payments? Negotiating your debts may or may not be the right choice to get help with your financial situation. Compare programs designed for helping people with similar debt problems.
Avoiding Costly Banking Mistakes: No Trivial Pursuit
Here are clues to preventing expensive errors with your checking account, credit card or other financial services. After all, this isn't play money!
Not considering fees when opening a bank account
A high interest rate or Annual Percentage Yield (APY) on a checking account is definitely an attention grabber. But that great rate shouldn't divert your attention from fees that can significantly reduce, if not wipe out, your earnings. Examples include monthly fees for going below a minimum balance, monthly or quarterly "inactivity" fees if you've had no deposits or withdrawals for a certain time period, and annual service charges on Individual Retirement Accounts (IRAs). "For small accounts, these fees can make a big difference in the total return," cautioned Howard Herman, an FDIC Consumer Affairs Specialist.
For example, a $2,000 IRA with an APY of five percent and a $20 annual service fee "will earn $100 interest after a year but, after deducting the service fee, your actual return is four percent, not five percent," Herman said. "Under federal law, fees are not factored into APY calculations, so consumers are on their own when it comes to determining whether fees will have a negative impact."
To get the best deal possible, first think about how you plan to use the account and how much you expect to keep on deposit, then compare different accounts at a few different institutions. Do the math as best you can, figuring your interest earnings after a year and then subtract the estimated fees for services or a low balance based on your expected use of the account. Sometimes an account that pays no interest can be a better deal than an interest-bearing account that's heavy with fees you are likely to pay.
Also remember that just because an account is advertised as "free" or "no cost" doesn't mean you'll pay nothing. Under Federal Reserve Board rules, an account may be described as free even if certain fees are charged, such as for ATM withdrawals or overdrafts.
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
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Last updated on 11/08/2006