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Fees may be a fact of life but that doesn’t mean you have to simply accept them. Fees can easily be overlooked when it’s just a few dollars, but even small fees can really bust your budget.

Here are a few fees that can be avoided:

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1. Gym sign-up fees

Fitness centres are known for pushing this fee on new customers. Initiation fees can run up to $129 or more and are pure profit for the fitness centre. The fitness market is extremely competitive, so shop around for a gym that will waive the sign-up fee.

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2. Mortgage life insurance

If you own a home, chances are you were offered mortgage life insurance. This insurance is not required and must not be a prerequisite for qualifying for a mortgage.

Term life insurance is much cheaper and offers greater protection than mortgage life insurance offered by your bank. Mortgage insurance is the one financial product which declines in value as you continue to pay. [More: Why you shouldn’t buy mortgage insurance]

3. Give up your landline

About 2 million Canadian households no longer have a landline, opting for wireless service.

There are some risks — 911 emergency services have a harder time identifying your location, monitored alarms and other services require either a landline or added-cost wireless technology, and during bad weather, call volumes can increase exponentially causing disruptions to cell phone service.

But if the phone is mainly used to receive telemarketing calls at dinner time, consider dropping your landline service to reduce household expenses.

Skype, Google Voice, and Voice Over IP services can often drop phone service costs down to just a few dollars a month.

4. Cellphone roaming fees

Talk to your mobile carrier about a pre-paid long-distance/roaming package before travelling to the U.S. or elsewhere.

Paying a bit up front could save you hundreds of dollars, and they usually last for 30 days so if you don’t use them on a first trip you have them for the remainder of the month. But beware - data and text roaming may not be covered, and there are other pitfalls to avoid.

5. Cellphone cancellation fees

Cancelling a cell phone contract or a cable package before the end of the contract (or “service agreement”) can bring fees of several hundred dollars.

Bell and Rogers both charge up to $400 to cancel a cell phone contract early — plus additional fees if you have a data plan. Be aware of the fine print in your service agreement and choose your time to change contracts wisely, or don’t sign a contract in the first place.

6. Annual credit card fees

Platinum and gold reward cards can carry annual fees of $75 to $120 for features you don’t use, unless you are a high spender or business user.

They offer faster accumulation of reward points like Air Miles or Aeroplan, but if it takes you more than two years to earn enough to fly, you’ve already paid a hefty amount of your reward in fees.

There are no-fee credit cards that offer rewards. They include MBNA Smart Cash MasterCard (3 per cent cash back on groceries and gas, 1 per cent cash back on everything else), or the President’s Choice Financial MasterCard (points toward groceries).

Don’t carry around extra credit cards. You can be hit with fees for forgetting to make a monthly payment on a card you rarely use. [More: Choosing the best reward credit card]

7. Prepaid credit cards

Visa, MasterCard and American Express offer prepaid gift cards that can be used just like credit cards at merchants across the country. Unlike regular gift cards, prepaid credit cards come with a host of unnecessary fees.

There’s a $3.95 fee just for purchasing an RBC Visa gift card. After six months, a $1.50 fee will be charged monthly until the balance reaches zero.

Stick to buying regular store gift cards that come without the fees and expiry dates. [More: Are pre-paid credit cards good for students]

8. Banking fees and ATM fees

Banks and credit unions usually offer accounts that waive monthly fees if you maintain a minimum monthly balance. Online banks like ING Direct and PC Financial offer no-fee chequing accounts and don’t require a minimum balance.

Avoid non-bank cash machines in convenience stores, bars and plazas. You are charged $1.50 to $2.50 at the machine and often another levy by your own bank for a total of up to $4.50 a transaction.

Plan ahead, use a smart-phone app to locate your bank’s own closest machine or be aware of other locations.

CIBC customers, for example, can use President’s Choice machines and ATMs in most Mac’s Milk outlets without fees. Credit unions have their own extensive shared ATM network. [More: How to fight your bank and win]

9. Airline fees

Pack carefully — Air Canada and WestJet charge $20 for checking a 2nd bag, and bags that exceed the maximum weight or size can cost you an additional $50. And book your tickets online to avoid a telephone booking charge. [More: Correcting credit scores takes tons of work]

10. Coin-counting fees

Rolling loose change is a chore. Many people use coin-counting kiosks, found in grocery stores and malls, which quickly convert your loose change into paper currency. This convenience comes at a steep price, however, with companies like Coinstar charging a hefty 11.9 per cent processing fee.

Skip this fee and roll your change at home. You can buy coin wrappers at a discount store, or buy a small coin-counting machine for home use.

If you insist on hauling your loose change out of the house, most banks offer free coin counting to their customers. Bank of Montreal Coin Counters are free to use for both BMO and non-BMO customers.

11. Probate fees

These are charged by provincial governments to prove that a will and executor have been certified by a court, which can help avoid potential disagreements in dealing with an estate.

These fees (really taxes) vary by province and with the size of the estate — in Ontario, the fee on a $500,000 estate amounts to $7,000. But there are ways to reduce the amount of probate fees paid, with some planning. [More: How does probate work?]

12. Credit report

Under Ontario law, you are allowed to check your credit report to see what information financial institutions are sharing about your credit history.

It’s a good idea to make sure the information is correct before you apply for a loan or mortgage. But as Moneyville columnist Ellen Roseman has pointed out, the consumer reporting agencies want you to pay $15, despite the fact it’s your right to get it for free once every 12 months.

Read more from the original source:
12 annoying fees Canadians should avoid