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It seems as if my bank is hitting me with fees and extra charges on my checking account every time I turn around. How can I reduce the service charges I pay?

Last year Americans paid about $2.2 billion in ATM fees, according to Bankrate.com's semiannual Checking Account Pricing Study. ATM transactions at machines not owned by the bank where you have your account are usually $1.50 per transaction, and a growing number of banks are charging $2. Your own bank is also likely to hit you with an additional fee. Using a "foreign" ATM can trigger fees of up to $3 per transaction. Look at your monthly bank statement carefully and compare. Make it a habit to use only your own bank's ATM unless it's an emergency and you can't get to one. More and more bank customers maintain checking accounts that require a minimum balance but also pay interest. (The average minimum required for interest-bearing checking accounts is $832; the average minimum for a non--interest-bearing account is $88.) But with the historically low interest rates of spring 2003, a checking account that earns interest isn't a viable savings vehicle unless you have a long-standing relationship with a bank and earn a higher interest rate than usual. So whether you write only two checks or more than 25 each month, you are better off with a truly free non-interest-bearing checking account--one that offers unlimited check writing and has no required minimum balance, no monthly service charges and no minimum-balance requirement. You should use that account tied with a preferred or insured money-market account (a higher-paying choice than a regular savings account) for overdraft protection,

But whether you use an interest-bearing or non--interest-bearing checking account, bouncing a check is getting more expensive. According to Bankrate.com, bounced-check fees have increased every six months in the last five years. The average insufficient-funds fee is $25.82. Better to monitor your account so you never bounce a check.

Finally, you might consider an Internet bank, but shop wisely. These offer better deals, higher yields and lower fees than brick-and-mortar banks, but not by much. The drawback: While you can arrange direct deposit of your paycheck if your employer offers it, many other deposits must be made by mail and can be subject to post-office delays. However, many virtual banks reimburse customers for ATM surcharges incurred, so you can make free withdrawals almost anywhere. And it's really worth taking a look at offers from Internet banks on the rates for certificates of deposit and home-equity credit lines, because they generally offer better deals than traditional banks.

Should I use my home-equity credit line to pay off high-interest credit-card debt?

Using your home as collateral to get a loan to pay credit-card debt is risky. If, for some reason, you fail to make the equity-loan payments, you could lose your house, which is likely your most valuable asset. Before choosing this option, make sure your expenses are under control and you pay all your bills promptly. Otherwise, whatever got you into debt trouble in the first place will cause a problem again--except this time it could cost you your home. However, if your finances are in order, you might benefit from paying outstanding high-interest credit-card debt with a home-equity loan. The move allows you to convert debt that isn't tax deductible to debt that is, offers an interest rate that is often far lower than the interest charged on your credit card and gives you a long time frame to pay back the loan.

Valerie Coleman Morris is an anchorwoman with CNNfn.