Thinking of how to cut your monthly expenditure? Start by clearing up these mistakes first. These are the worst mistakes you can make because avoiding it is easy.
#1 Hidden Transaction Costs
Have you ever encountered a higher fee charged on your credit card only when you check your credit card bills? This might be due to hidden transaction costs that only surface right before you make payment. These are additional charges that only surface right before you click pay or written in the fine lines of the terms and conditions.
One such example is the Scoot hidden credit card processing fee that you will not see until you start to key in your credit card details. For some, you might not realize that you are paying more when you pay via credit card due to processing fees.
For most budget airlines, if you were lucky enough to stumble upon a discounted airfare, you might not be saving as much as you think due to the hidden credit card processing fee.
For those who are a fan of taking Uber, your ride may cost more than you think. Since the payment for your rides are processed overseas, transactional costs which are not reflected on your receipt may end up on your credit card bill.
Tip: Look for alternative payment methods that will not incur you these additional costs. E.g Pay through AXS machines to save you that $20/pax for your Scoot plane ticket.
#2 Auto-Renewal Subscription Fees
Tempted to try a new product due to the one-month free trial? Typically, companies that offer this service will require you to key in your payment details. Chances are, if you are not interested in the product after the first month, you will still end up forgetting to cancel the subscription.
This is mainly due to the auto-renewal function that incurs you that few dollars every month when you use a product past its free trial. These recurring fees will slowly creep into your credit card bills every month without you even knowing. Do not fall into this trap just because it is easier to let them charge you that small amount than to cancel your subscription.
Examples of such products are Spotify, Netflix, Apple Music.
Tip: Check your credit card bills and monitor recurring bills. Alternatively, set a reminder to remind yourself to cancel the service before your free trial or discounted subscription ends.
#3 Not Checking Your Credit Card Bills
Always check your credit card statements to ensure that no one has been using your credit card for unauthorized purchases. Sometimes, credit card frauds occur by charging you a small amount every month which you might not notice. As the saying goes, it is the little things that count. Spot any discrepancy and report to your credit card company when there are unauthorized transactions.
Tip: Keep your receipts and check against your monthly credit card statements. Take some time to review the expenditures that is charged to your credit card a month.
Now that you know, start taking note of your expenditure and avoid these mistakes that costs you more than you think.