5 Ways To Avoid Late Credit Card Fees
Credit card late fees can be dehabiliting and cost money each month that the payments are not received on time. One of the worst things about credit card late fees is the fact that they can be easily avoided if the consumer is diligent and takes measures to ensure that the payments are received to the credit card company on time each month.
Credit card late fees are added to the balance of the credit card payment which is due immediately. Depending on the balance which has been accumulated towards the account, this amount can increase upwards of fifty dollars! It is important to avoid these unnecessary fees in order to make the most of your money.
Here are some ways that you can take to avoid credit card late fees:
Take Advantage of Pre-Authorized Debits
Pre authorized debits can be used to allow the credit card company to withdraw the money from the bank account as soon as the amount comes due from the statement. This can also be set up with another credit card to repay the payments. Taking advantage of pre-authorized debits means that you will not be subject to late charges ever again!
Pay the Bill as Soon as it Arrives in the Mail
Paying the bill the moment that the statement arrives in the mail could mean that fewer late fees will accumulate, as the bill is issued at least two weeks before the deadline for payment with most companies. Take advantage of alternate payments method to repay the debt before late charges accumulate.
Take Advantage of Online Payment Processing Systems
Online payment processing systems can allow the consumer to repay the minimum payment or other payments within forty eight hours. Most often, when you use the internet or online banking system to repay credit card bills the payment is processed within forty eight hours and is applied to the credit card account shortly after. This can ensure that the payment has been made to the account before the payment deadline; therefore no more late fees can be accumulated on to the credit card account.
Pay towards the Credit Card Bill after You Have Made a Purchase
In the case of most credit card companies, if a payment has been made within the month, it is allocated towards the minimum payment amount which would have been charged. Therefore, making multiple payments throughout the month can mean that you are an on a “payment vacation” and do not have to ensure that the minimum payment is made that month, as you have previously repaid the balance. This is a great way to stay on top of spending while decreasing the amount of debt which is accumulated towards the credit card.
The Risks of Buy Now Pay Later Credit Plans
Nearly every retail store offers buy now – pay later plans that come along with interest free financing. These deals are a way to get what you want now, even if you don’t have the money. Although you are not being charged interest on these purchases, can you really determine that these types of payments plan come without risk? Here are some of the risks of buy now – pay later payment credit plans:
After the initial term, the interest increases. After the term of the buy now – pay later plan the interest can go from zero to upwards of thirty percent within a month! A couple of months before the term is over, the consumer is sent notices that will warn you of the impending interest rate which could accumulate upwards of several hundred dollars per month, depending on the price of original purchase. If you are unable to repay the buy now – pay later purchase within the term than the purchase should be avoided.
What if your situation changes? These terms often last an average of twelve to eighteen months. How secure is your job? Are you going to have regular employment in eighteen months? With the current state of the economy, it can be a bad idea to plan for the future and purchases that you are going to have to fund. Even if you start saving now, are you going to be able to continue the saving plan to pay for the purchase? Read more