The High Cost Of Being Late
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Some people pay every bill on time; some people procrastinate unpleasant chores like bill paying. Unfortunately, procrastinators end up paying dearly for their bad habits. If you ever hope to get out of debt, you need to get into the habit of paying all your bills on time.
If a person pays their credit card bills late, the credit card companies can take numerous negative actions. They can report it to a credit scoring agency which will send the person’s credit score plunging by hundreds of points. They can, and will, add fines and late fees.
If a person pays any bills at all late, in fact, it is likely to be reported to the credit scoring agencies.
If they pay their bills TOO late, services like cable TV, utilities, and telephone can be cut off, and there are always reconnection fees.
Once a credit score has plunged, it becomes much more expensive to borrow money because the borrower is seen as high risk and they have to pay significantly higher interest rates.
Sometimes it is impossible to pay a bill on time. If you do not have enough money then the important thing to do is to contact the company and explain the situation to them and tell them when you can pay – and then DO pay!
However many people simply don’t pay on time because they’re disorganized or they hate unpleasant chores. Just put those bills on automatic. It’s very easy to have a bank or an online service send out payments on time these days; doing so can save you a lot of money in the long run, and can save your credit rating, too.
If you want to reduce your credit card debt, you need to pay your bills on time. You will save money in interest charges and you will avoid high late fees.