Avoid Late-Payment Fees

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FDIC Consumer News – Summer 2007 – Using a Loan or Credit Card


Related Financial Services - The following list of company and services directories offer a wide variety of programs for consolidating bills and other similar services, such as a getting a mortgage refinance interest rate quote from a lender or an online quote for life or car insurance.

  • Credit Card Debt Settlement - If you have a large amount credit cards and other unsecured debts, and have fallen behind your payments, this form of debt negotiation may be the right option for helping you with your financial problems.
  • Debt Management Programs - Too many credit bills for you to handle with your budget? Compare different programs and find the one that is the right match for your individual situation.
  • Debt Consolidation Help - If you have a large amount of  credit card and other debts, now may be a good time to consolidate your debt and lower your payments.

Cutting Your Costs

Simple Strategies for Saving Money on Loans and Credit Cards


11. Avoid late-payment fees. These are penalties, typically $30 or more, charged by your lender when you don't make a loan or credit card payment on time. One way to prevent late fees is to arrange, at no charge, for an automatic withdrawal from your checking account to cover these and certain other recurring expenses (such as a utility or insurance bill). The automatic debiting of your account also takes the hassle out of making scheduled payments and saves on postage. However, be sure to record these automatic payments in your checkbook, said FDIC attorney Susan van den Toorn. "If you don't," she cautioned, "you might end up accidentally overdrawing your checking account and subjecting yourself to fines and damage to your credit score."


It is also possible to pay your loan or credit card bill online, but it's recommended that you pay about two days before the due date to be sure it is processed on time. Also know your financial institution's cut-off time for recording payments each day. If you're bumping up against the deadline and you can't pay online, consider calling your card company and asking for other options, such as 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," said Kirk Daniels, a supervisor in the FDIC's consumer affairs section.


Should you pay the old-fashioned way — by regular mail — allow enough time for delivery and processing by sending your payment about a week before the deadline.


Summer 2007 | Pay Your Bills on Time | Don't Have Too Many Credit Cards | Check Your Credit Report for Accuracy |
Periodically Review Your Exsisting Loans and Credit Cards | Compare Prodcuts Offered by Banks and Credit Cards |
Focus on Long-Term Cost | Take Advantage of the Internet | Read the Fine Print |
Don't Pay for Expensive Insurance Coverage | Avoid or Limit Interest Charges | Avoid Late-Payment Fees |
Closely Review Account Statements | Don't be Afraid to Ask for a Break |
Use a Reputable Counseling Service When in Serious Debt | Don't be Afraid to Complain


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 8/10/2007

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