Millions of consumers will pay billions this year in fees that are not listed on their credit card statements, bank statements or any other financial record. From rate spikes to endless fees, it seems that credit card companies are finding more and more reasons to take your money. The most costly of these hidden fees or charges may be referred to by many different names such as “interchange fees,” discount fees”, “checkout fees”, “currency exchange fees”, or “convenience fees”.

Most consumers are ignorant to the fact that they are paying interchange fees, which are hidden in the price of virtually everything we buy and are estimated at $27 billion annually in the United States. Consumers are unaware of these hidden fees because the credit card companies don’t want you to know. Even though consumers are unaware of the fact that credit card companies and banks charge a fee on every single transaction this doesn’t keep it from happening. Retailers pay your bank and credit card companies every time you make a purchase with plastic. However, as more and more consumers start to use plastic for their purchases, the cost that the retailer is paying to your bank or credit card company goes up. The retailers then have to build this expense into the cost of their product, which is then passed along to consumers in the form of higher prices for all products. More importantly this is being passed along to almost every consumer not just the ones using plastic. However, there are certain places that charge a different price if you use cash rather than credit. For example a service station called ARCO charges a $.40 fee for debit or credit, but there is no additional fee for paying with cash. So keep this in mind, the next time you purchase a ½ tank of gas (almost 8 gallons) you will be paying an extra $.05 per gallon. Since today’s gas prices are so outrageous who would want to pay more. My advice is to be aware and if you can afford it use cash on as many purchases as possible. Reports show that the average household paid more than $230.00 in hidden fees last year. Imagine what that extra money could have done for you!

Credit card companies are also trying new ways to squeeze money out of you. They have ever changing grace periods (the time between making the purchase and your credit card company charging you interest). It used to be if you made a payment before the grace period you would not have to pay interest on that purchase. Say you start your month with a zero balance and charge an amount that you don't pay off in full at the end of the month. If your card uses the average daily balance method to calculate interest, you are charged nothing for the month you made the purchase, and interest only for subsequent months in which payment is outstanding. Unfortunately, this former interest method has gone to the wayside and two-cycle billing is taking over. With two-cycle billing, interest charges begin with the day you make the purchase and gives no consideration to when you pay off the purchase.

And if that wasn’t bad enough paying your bill by a certain date will not even guarantee you don’t get charged a fee. Card statements are very clear about what day your payment is due, but are not so up front about what time on that date your payment has to be in. Some banks have set a 9 a.m. deadline on the posted payment date which is normally before the mail even arrives. You are expected to pay by a certain time in the day. If your payment is not recorded before this time elapses you may be stuck with a late fee.

Another tricky maneuver that credit card companies like to pull is checking up on your credit report to see if you have defaulted on any other credit cards, personal and auto loans, utility bills or your mortgage. This is referred to as a “universal default.” You can make all your credit card payments religiously for a long time, but fall behind on your electric bill and, suddenly, you're a high risk borrower and you will be charged accordingly. If you have missed a payment on any of these installment contracts you can probably assume that your interest rate will sky rocket to at least 25%. For those of us who received a great introductory rate, this could be devastating.

The easiest way to avoid any type of hidden fees or costs is to pay your bill on time - as soon as you receive your bill. Another helpful hint is to pay more than your minimum so you can pay your bill off faster and ensure that you pay the bill and not just the interest. Hidden fees and costs are out there, it is your responsibility to be aware and avoid them. Credit card companies and banks won’t tell you what the hidden fees are, unless you ask them. You should never be afraid to question them or put them in a position where they have to explain their actions. To protect yourself and your credit it is important that you should always be aware of the costs and how you can prevent them from being charged to your account.

If you are already in a situation where you are beginning to default on any of your payments or are having trouble paying your bills on time, it may be time to seek outside help. You can contact a reputable debt settlement agency and see how they might be able to help reduce your debt. Most reputable firms will offer a free consultation.