Late Fees: How to avoid them!

It is simply ridiculous, the charges credit card companies impose on consumers who are late making payments. In this unfortunate time, we know that even employed American’s are going to take a credit hit.

Yes, creditors have a legal right to do what they are doing, however, ethically speaking that is certainly open to debate! Let’s look at some ways you can avoid costly credit card late fees:

1. Pay your bills on time. This one is obvious but can prove difficult if funds are low or if you have been affected by COVID19 or laid off. Ideally, when you get your bill, open it up and pay it right away. Waiting means forgetting or hoping that your payment arrives on time. It won’t mail or pay itself. Even those on a fixed income can budget with the right tools. Click here to get our free 6-year budget package.

2. Pay online. Paying via your computer is faster than mail services, but there is still some lag time from when you authorize a payment and when the payment is finally credited to your credit card account. Generally about 24-48 hours.

3. Automatic payment. If your credit card provider permits it, have them automatically deduct a set amount from your account every month. That way they’ll get their funds well in advance of their due date.

4. Fight it. Just because the credit card company said that your payment was late doesn’t mean that it was late. Call them up and ask them to reverse the charge — now as high as $39 — and to adjust their records accordingly. If you have a good report with them, they are usually pretty awesome about providing one time gratis.

5. Furlough it. Most people don’t read the fine print or check all of the boxes but by law, most credit card companies offer a disability or unemployment clause that will delay, pay your minimum balance, or adjust the payments to $0.00 for a specified period of time. Check with your creditors to see if this is an option for you.

Allowing credit card companies to run roughshod over you is one sure way to worsen your credit card woes and take a huge hit to your credit score. Know your rights and take action as required. During this pandemic, it’s important to stay on top of your finances and we can help. Take advantage of our free resources! Join our Facebook Group to get daily updates, ask questions and get resources. Get your free consultation or credit evaluation. Book today!

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