4 Ways to Outsmart the System, Legally
Are you tired of bank fees and overdraft statements? I’m sure you are — and if you aren’t, then you’re great at outsmarting the system. If you don’t have those skills, then it’s time to learn a few of them.
There are ways to outsmart the bank, the mortgage company, and even the system itself! Try these on for size and find new ways to keep money in your pocket. Don’t worry, these tricks are legal and very simple.
1. Hidden fees
Banks charge fees for things you would never imagine they would. For instance, at some banks, there are fees for using the teller window, writing too many checks, and speaking with a live person on the phone. This is true!
Most of us are already aware of ATM fees, but do you know what else they are taking money for without your knowledge? The solution to this problem is to request a “schedule of fees” the next time you visit your bank. This will show you for what and when they take money from your account. With this knowledge you can limit and may even eliminate some unnecessary fees.
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2. Sneaky overdrafts
Many people are unaware of how some banks rearrange the ending balance on their account. Maybe one day, you’ll be skating close to the edge; and the next day, you’re overdrawn not once, but twice!
If you don’t keep up with your account, banks can change the order of your credits and debits to their advantage. Keeping an eye on your digital banking information and reporting these incidents will eliminate this problem.
3. The bi-weekly mortgage tactic
Instead of paying by the month, try making bi-weekly mortgage payments. You would be surprised at how much money you can actually save. Instead of making 26 payments, you will only make 24. This is just the magic of using the bi-weekly avenue when paying your house payment.
There are many reasons to refinance your home loan. One reason to do so is to turn your 30-year mortgage into a 20-year mortgage. Yes, this can be done.
Not only does this option reduce your payment time, it also helps decreases your debt and gives you lower interest payments. For those who live in Canada, you might find this article useful for conducting business with mortgage companies.