Originally published March 14 2005
Late credit card payments have stiff consequences
by Mike Adams, the Health Ranger, NaturalNews Editor
Credit experts urge consumers to pay close attention to the details of their credit card agreements. Many card issuers charge late payments immediately, and will raise interest rates after only one or two late payments. Some issuers will even raise interest rates when the late payments were made to other creditors. A payment that is even one day late can carry large penalties and fees.
Consumer Action has released its annual Credit Card Survey of 140 cards from 45 issuers.
The survey revealed that many immediately charge late fees on payments not received on the due date and raise interest rates after only one or two late payments.
The survey also suggests that credit card providers are more likely than ever to raise your interest rate after only a couple of late payments, even when those late payments went to other creditors.
Late payment penalties for many of these credit cards may be quite harsh.
Given that most credit cards require a minimum monthly payment of 2% of the balance, the late fee as a percentage of that payment can be over 100%.
According to the survey, consumers with a $2,000 balance on one of the top 10 credit card issuers pay late fees that are 129% on average.
The Credit Card Survey found that 44% of credit card issuers increase interest rates based on customers' poor payment records with other creditors.
Nearly a third (31%) acknowledged that one late payment can trigger a penalty rate, and 35.5% said two late payments in consecutive months or a six-month period would bring about the penalty rate.
Paying credit card bills on time is more important than ever to avoid high late payment fees and higher interest rates.
Pay attention to bill due dates and make sure to allow ample time for bills to reach the creditors.
Debbie Wilburn is County Agent/Family and Consumer Science Agent with the Hall (770)535-8290 and the Forsyth (770)887-2418 County Extension Service.
The articles are the views and opinions of the author and do not necessarily represent those views of AccessNorthGa.com, Jacobs Media Corp. and its subsidiaries.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml