Let’s talk about late fees. Many economists talk about impending double-dip recession, which is nothing but another year of recession after a short growth period (not growth but a bit of improvement). However, many have also claimed we might experience a Lost Decade, which is a decade of negative growth, similar to the once experienced by Japan from 1992 to 1999.
Economists may be true, or maybe they are just blabbering simply because they are asked to. However, there is certainly not much evidence of improvement. Unemployment rate isn’t improving, housing rates are still down, and may go down further, and there is no significant growth in companies’ figures.
Although we, consumers, cannot do much to change the economic situation, we can at least try to ensure we don’t suffer as much as we did in past. People with poor credit score are the ones who would be affected the most. Hence, it’s important to maintain our score, and save as much as we can, so we don’t sink into another debt hole.
One of the things that we don’t want to spend on is late payment fees. On an average, a credit card company charges around $39 as late fee, and most of the revenue they earn is charged by such fee. Alright, we are talking about improvement in economy, and increase in bank’s revenue may a bit helpful. But you don’t have to sacrifice your $39 simply to boost the economy. Pay bills on time, and save $39 every month.
I know it’s not easy, especially when you have to tackle many bills many bills with similar due dates, and all you are left with is one paycheck. Sometimes, late fee is simply unavoidable. Besides, you also fight the risk of increase in interest rate due to missed payments.
How Do You Pay Bills on Time to avoid late fees?
You need to probably start with understanding how it works. If you due date is 1st of the month, and they charge you late fee after fifteen i.e. 15th of the month, understand your due date is not 15th but 1st.
If you are not very sure about how it works, you must call up the service provider and take the necessary information about it. Besides, you can pull out the copy of your application form or the initial kit, and read the fine print.
To make sure you don’t forget your due dates, derive a way that works for you effectively. Keep a reminder on your desktop or write it down in your diary, or simply mark the dates on the calendar. But don’t forget the dates.
Spread Out Dates
You may have difficulty in paying off your bills because most of the bills are due on same time. Changing the dates might take off some pressure and help you repay the balance. You can do this by simply calling up your creditor and asking for another payment date.