Auditing your debit card statements annually can save you money

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I get so many of these little billing emails from Apple that I stopped reading them years ago.

In the age of huge digital photo albums, how many people pay Apple or Google for extra storage space for their photos and device backups? The tech giants won’t tell.

However, Telsyte’s study found that 44% of device users use cloud storage services for their digital data. Of these, more than 30% have paid for this privilege.

These storage plans are the up-selling of products from the technological universe.

Apple gives you 5GB of storage for free, but it doesn’t take long to fill up before giving you extra space — for a fee. Same agreement with Google, whose free cloud storage space is capped at 15 GB.

Cloud storage plans have also become more feature-rich over time, which has led to price increases. The more expensive types can total up to $120 per year for a family plan.

I found out that I was paying for both Apple and Google photo storage which was a waste of money.

The other hidden bill that becomes clear if you go further and check your credit card statements is the amount of interest you are paying.

Nearly half of credit card customers pay interest because they don’t pay off their outstanding balance in full each month.

With an average credit card balance of $2,877 and an average interest rate of 17%, that’s about $430 in interest per year if you only pay the minimum amount.

To put that into perspective, the average electric bill is around $1,500 a year, so many people have a credit card interest bill that’s almost a third of their annual electric bill. .

However, debit cards are still much more popular than credit cards. It’s good because they do almost everything a credit card does without racking up an interest bill.

Checking your debit card statements annually is like moving house. It forces you to look at each item and ask yourself “do I really need this”?

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These little purges are good for your bank balance, so why not do a “Marie Kondo” on your debit card at least once a year?

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. Before making financial decisions, they should always seek their own professional advice that takes into account their personal circumstances.

Joel Gibson is the author of KILL BILLS. Catch his money-saving segments on Nine Radio, Today and on Twitter @joelgibson.

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