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How to minimize and avoid international transaction fees while traveling abroad.

Did you know that most major U.S. credit card companies charge an international credit card transaction fee if you swipe it abroad? Only recently have many of these companies began (as per legal requirements) to clearly disclose such fees so customers could plainly see what these charges were. So how do you minimize international transaction fees while traveling abroad?

First and foremost, don’t use the credit card! Instead, make purchases using travelers cheques or local currency. Exchange currencies through your bank before you leave to avoid high exchange fees or use an ATM since withdrawals do not generally have transactions fees, you can withdraw in local currency, and your bank’s foreign currency rate is likely much cheaper than anywhere else. You can also use your debit card but be sure the vendor does not run your card as a credit card, otherwise you will be subjected to the same fees.

The easiest way to avoid foreign transaction fees is to simply sign up for a card that doesn’t charge them – you’ll get the peace of mind using a credit card without the annoying fees that can really add up. Currently, Capital One and Discover are the only major credit card companies that do not charge international transaction fees; however, Discover is not accepted many places internationally.

Tips to Reduce Your Living Costs

• Eat at home!  Small amounts here and there add up.  If you spend $7 a day eating out, that’s $49 a week and nearly $200 a month!  Buying groceries and eating in or packing a lunch is far less expensive - plus, it’s probably more nutritious and sanitary!
• Don’t go to the grocery store hungry!  Keeping your stomach full when you head to the store will ensure you don’t leave with unwanted items.
• If you are in the market for new appliances, purchase those with the Energy Star label, which means it meets strict energy efficiency guidelines set by the Environmental Protection Agency (EPA).  Such appliances use less energy, thus costing you less money over time.
• Install toilets that use less water (Toto toilets are a great example).
• Replace incandescent bulbs with CFL light bulbs - they provide more light, last longer, and can save as much as $50 a year.
• Turn down your heat or A/C when you are not home during the day to save on heating and cooling costs - doing so could save literally hundreds of dollars a year.
• Reduce your laundry by combining loads so you waste less water.
• Run the dishwasher only when it’s completely full.
• Can you cut out the extra (often unnecessary) features you’re paying for when it comes to phone and cable service?  If you can live without it, forgo the call forwarding, pay-per-view, and specialty channels you’re wasting money on.