Being unable to pay off credit card debts is becoming a fact of life for many people however did you know that missing just one payment could be enough to ruin your credit rating? In order to avoid late fees you need to be pro-active. If you choose to take action today you may find that you are able to avoid credit card late fees and avoid ruining your credit rating.
Don’t Miss a Payment
It sounds obvious but the main way to avoid being stung with late fees is to pay your credit card bill on time. Now this isn’t always easy, especially as unforeseen circumstances do often hamper the best of plans however credit card companies won’t care if your car has broken down or if you spent a bit too much on last month’s phone bill so contacting them with sob stories won’t work. Even if it means going without for a little bit longer, if it means paying your credit card bill on time you should do it.
Pay the Minimum Payment Amount
If you don’t have enough money to pay off your whole credit card statement you should try to at least pay off the minimum payment amount. The best way to ensure you have the minimum payment is to set it aside at the beginning of the month. This way if you do have any extra money by the time the bill payment is due you can add it to the minimum and start clearing your debt. Inside every bill that you receive will be instructions and guidelines concerning your payment, make sure that you follow these so that you know how much you are expected to pay to avoid fees.
“Skip a Payment”
Some credit card companies offer “skip a payment” services on a case-to-case basis. If you really cannot pay your bill and are also worried about the damage that it will do to your credit rating, you could try contacting your card company and enquiring about this service. Generally, when approved, your credit card company will waive the bill for one month to enable you to improve your finances. You may find however that this is a service that can only be used once a year so where possible you should only rely on it in emergency situations.
Before you make a purchase on your credit card you should make sure that you are aware of the interest rates and how much you are required to pay back on a monthly basis. It is also a good idea not to purchase anything on credit that you know you are unable to pay back. If you are responsible and informed you should not have too much trouble avoiding late fees.