A Tale of Two Wallets — Watch out for What’s in Your Wallet!

The plastic card fees and the APRs for the credit cards documented in this report can really add up for consumers. Because the fees are $1 here, $1.50 there and $2 here again, many consumers do not realize just how quickly those dollars can become hundreds of dollars. Also, many consumers would be shocked to see how much they are paying in interest each year on their credit cards. This section of the report contains “A Tale of Two Wallets” and the wallets described contain plastic cards, which mount hundreds of dollars in fees and interest over the course of the year.

Wallet #1: Consumer’s wallet contains two credit cards and one ATM/Debit Card. Plastic cards in the wallet would cost a total of $375.45 for the year based on the following usage profile:
Credit Card One:	Balance - $1000 APR - 13% Payments - minimum monthly payments Total interest paid over the course of one year	$120.32
Credit Card Two:	Balance - $1000 APR - 18% Payments - minimum monthly payments Total Interest paid over the course of one year	$170.41
ATM/Debit Card	ATM Fees (based on consumer making on average two foreign ATM transactions per month over the course of the year). Debit Card Fees - (based on consumer making on average two PIN-based POS transactions per month over the course of the year).	$67.92 per year $16.80 per year
Total Cost for One Year for Fees and Interest for Plastic Cards in Wallet # 1:		$375.45

Wallet #2: Consumer’s wallet contains one pre-paid card and three gift cards. Plastic cards in the wallet would cost a total of $318.18 for the year based on the following usage profile:
Pre-Paid Card:	Activation Fee Participation Fee POS Transaction Fees (based on consumer making on avarage two PIN-based POS transactions per month over the course of the year). ATM Transaction Fees - (based on consumer making on average two ATM withdrawals per month over the course of the year). Load Fee - (based on consumer adding money onto their card on average two times per month over the course of the year).	$50.12 per year $69.70 per year $20.64 per year $76.56 $34.56 per year
Total Fees for One Year for Pre-Paid Card -		$251.58
Gift Card One:	Expiration Fee	$15
Gift Card Two:	Service Fees - (based on paying a monthly service fee of $2.50 for 6 months out of the year)	$15
Gift Card Three:	ATM Transaction Fees - (based on consumer making on average one ATM withdrawal with their gift card per month over the course of a year)	$36.60 per year
Total Cost for One Year for Fees for Plastic Cards in Wallet #2:		$318.18

Introduction | ATMs-Always Taking Money | Debit Card Confusion | Pre-paid Cards-The Priciest Plastic of All | The Credit Card Trap
Bye-bye Paycheck-Payroll Cards | Don't Save that Gift Card for a Rainy Day | Recommendations | Methodology | Attachments