I’m like most people, I pay most of my bills monthly or on a regular basis every few weeks. I got an insurance notice today and noticed that the service charge for paying monthly had increased by $0.33 per month. That’s an extra $3.96 per year (that’s 2.76 coffees@ 1.43!) for a total of $22.56 in service charges over the course of a year (that’s 15.77 coffees @ $1.43!) that I pay for the privilege of paying monthly instead of every 6 months or once a year.
I love my insurance company and the agent I deal with is very honest and really great, he did tell me about these fees for the monthly plans when I signed up… I don’t know why I never did anything with that knowledge, laziness?
Instead of throwing my money away like that I should just be socking away the money every month as if I were paying by the month and getting interest in one of my high interest savings accounts until the insurance renewal comes due. That’s what I should be doing! Grrrrr. I am a little angry at myself for not realizing this money savings technique sooner.
Do you pay any hidden fees like this? How long did it take you to realize they existed?