Related Consumer Finance Programs - The following sub-directories of companies offer a wide variety of financial programs to assist you with the management of your finances. Consolidate debt with a consolidation loan or use a debt counseling service or mortgage refinance for help with the consolidation of your charge card debt and other monthly payments.
- Credit Card Debt Consolidation - Are your bills piling up? Lower your monthly payments and consolidate them with a debt consolidation loan or a related service.
- Debt Management Services - Do you have too many monthly bills and payments to manage them effectively? Visit this directory of sites in order to review and compare different debt management programs that may be able to help.
- Need Personal Loan - Looking for a personal loan to consolidate your credit cards? These loans are usually unsecured, meaning you are not required to provide collateral. Approval is often based upon factors as your income, credit and job history.
Avoiding Costly Banking Mistakes: No Trivial Pursuit
Here are clues to preventing expensive errors with your checking account, credit card or other financial services. After all, this isn't play money!
Paying your credit card bill late
Don't assume it's okay to be late with your card payment just because the minimum payment due is fairly small. In fact, you can be hit with fees or penalties any time you miss a payment deadline, even if it's only by a day.
You can expect a late-payment fee of about $30 or more. You may also face a major hike in your interest rate — often to between 29 and 35 percent — on this credit card and possibly other cards or loans, especially if your credit record shows other signs of risk. And if you're late paying by about a month or more, you might find your credit score reduced, which can make it harder or more expensive to get a new loan or even a new job or insurance (because prospective employers and insurers can review credit histories when deciding on applications).
What can you do to avoid or minimize late payment penalties — beyond just paying your bill on time? First, closely review your card member agreement so you know what may happen if you pay late. "The wrong time to question the consequences of a late payment is after you've missed the deadline," said Kirk Daniels, an FDIC Supervisory Consumer Affairs Specialist.
Also, if you haven't yet missed the deadline but you can't mail the payment on time, consider either making an online payment at your card issuer's Web site at least a day or two before the due date, or paying by phone by providing bank account information to authorize an electronic fund transfer from your checking account. "Even though there may be a small service charge for these options, it will likely be less than a late-payment fee," Daniels noted.
Other words of advice: If you're short on cash, it's better to pay at least the minimum amount due on time, rather than withhold payment entirely. And if you do pay late but it's a first-time or rare occurrence that was caused by unusual circumstances, call your card issuer immediately and ask what, if anything, they may be willing to do as a courtesy to a good customer.
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
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Last updated on 11/08/2006