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The problem lies in the fine print oftraditional financial products.
The traditional system is broken, Williams said.
Here are a few ways to avoid junk fees if it’s crucial that you borrow money.
Ideally, you should search for products with asimple and transparent fee structure.
Use fintech solutions with simple fee structures that do not accrue or compound over time, Williams said.
This is easier to understand and manage in difficult scenarios.
Always Pay Bills on Time
Late fees are a common junk fee and they are easily avoidable.
If you use credit, never pay late, Williams said.
Fees [such as late fees] cost billions.
Our Cash Poor Report found that credit cards cost consumers $11.5 billion in fees independent of the APR.
Carrying a balance can lead to expensive interest charges and increase your debt, Williams said.
Only use credit that you’re able to pay back in full.
When you do this, you will never pay interest.
Stay vigilant after your purchase is complete.
Credit cards are convenient and they make it all too easy to overspend, he said.
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