The Dreaded Late Fee: How to Avoid It
You’ve been waiting for your monthly credit card statement. It seems like it is arriving later and later, leaving you little time to get the money in the mail. Because of the sluggish way the mail tends to run, you’re lucky if your payment makes it in the door ahead of the clock. You did your part, yet the following month, your credit card company still slams you with a huge late fee.
You can not help it that they don’t send those billing statements out way ahead of time, or that the credit card company not only wants that payment by a certain date, but has also decided to consider it late is they receive the payment after a certain time of the day. You also can not help how long it takes the postal service to get your money to the company, and you certainly are not responsible for Mother Nature, who can add to the delays. What you can do, is to be prepared and to help yourself. Here are a few tips to help you avoid paying more than you owe, simply because of late fees:
Set Up Automatic Payments
If you know you can have the money in the bank and are comfortable setting up ACH withdrawals, allowing the credit card company to automatically deduct the payment from your bank account will allow you to avoid those annoying late fees. You’ll want to stay on top of things, however, ensuring that the money is there, you don’t wind up overdrawn. Check your balance and statements often around the time of the withdrawal to ensure that everything is going smoothly and that no mistakes have been made that could wind up costing you more.
Pay Online
Most credit card companies give you this option. You’re payment will post much sooner, ridding you of headache and hassle. Simply do a manual transfer from your bank account. This is different than automatic bill pay, as you control when this occurs and the frequency of it as well.
Be Prepared in Advance
If you still prefer the tried and true method of sending money orders through the mail to make your payments, know you’re balance and due date in advance. You can call the credit card company (many have automated systems for this) to find out this information before you ever receive the bill itself. Prepare a money order for the full balance or the amount you plan to pay. That way, when the bill comes, you can drop it right back in the mail within 24 hours. Even better, if you know the billing address, you could just send it as soon as you know the balance in advance. Hang onto your money order receipts. You will want proof of payment as well as a way to track that money order, just in case.
Balance Transfers
Transferring you balance to a lower interest card might be another way to avoid those late fees, but watch out! This means you’re carrying an additional balance on another credit card where you could encounter late fees if you are not prepared.
What to Do When a Late Fee Appears
If you genuinely know that you mailed your payment ahead of time, or there was some kind of disaster, such as an ice storm or tornado or earthquake, among others, that got in the way and slowed things down, cal the credit card company. Be honest with them and ask them to waive the late fee. Often, they will do just that, so long as the privilege is not abused.
Credit card late fees don’t come cheap. You want to avoid them altogether or try to get out of them if there is a good reason why your payment is late or you do not deserve the added charge. Following these tips should help you to breathe a bit easier when opening your credit card bill.
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