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Credit Card Late Fees - How to Avoid Them |
Credit cards have become a common means of
paying bills. It is very convenient because you need not make any
cash payments from your pocket. Though credit cards are easy to use,
they come with a fee that is charged by the credit card company. It
is advisable to pay credit card fees on time because being late will
cost you a lot of money.
Many credit card companies charge
a penalty for late fees, so it is advisable to pay up in time, to
avoid the penalty. The average late fee for credit card used to be
12 dollars in 1994; by 2004, it rose to 32.65 dollars. It has now
gone up to a whopping 39-40 dollars. Hence, it is prudent not to
delay your payment.
You can stay away from late fees by
various methods.
1. The best way to avoid late fees is to
be fully aware of all the conditions and restrictions related to
your credit card company. You can get the information of the
guidelines on the back of the credit card bill that your company
sends you. Try to make use of the specified instructions of payment
in order to ensure that your money reaches them on time, without any
problem.
2. Having a good record can always help. As a
responsible credit card user, you must try to maintain a good record
of your payments because many companies that issue credit cards make
considerations on the late fees if you have a good payment record.
They do this as a special courtesy for their responsible customers.
3. If you forget to pay your credit card fees, and the due date is
already upon you, you can avoid the late fees by paying via the
telephone, instead of using the mail. To enable this, there is a
toll free number on the back of every credit card. In order to make
payment you need a check number and a bank routing number. You can
find these numbers at the bottom of every check. Once you make the
payment you should tear off that check, as you cannot use it again.
Some credit card companies keep this facility free of cost for their
customers while others charge about 5 to 20 dollars. Make it a point
to ask your credit card company about this facility.
4. In
case your company does not offer you the facility to pay your bills
by phone, then you can always use express mail for payments.
Although using the express method may cost you extra money, it will
be less than the late fee that your issuer may impose on you.
Besides, it will help you send your money to the company as soon as
possible.
5. Try paying online. Many companies accept
payment through the Internet. This method can prove to be very
useful if you are traveling.
6. If you do not have the
required cash to pay your bills and the due date is approaching,
then you can talk to your credit card company and set your own due
date for payment. Set the due date at a time when your salary
arrives. Hence, enabling you to pay your bills without late fees.
Therefore, in order to keep your credit card use hassle-free,
remember to make your payments on time and in the right manner
specified by your credit card issuer. Try and stay out of the
late-payment cycle to avoid the extra cost in the form of late fees.
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