How late payment fees can add to your debt

When you have several credit cards and are struggling to keep on top of your finances it can be very easy to miss a payment on your credit card. If you are late with a payment a credit card company will charge you a fee for doing so, this is normally £12 for every separate occasion. If you are a customer which pays by cheque or direct debit and the payment bounces you will also be charged £12 for a returned payment. This can seem harsh as in some cases it can be out of your control. If you have many credit cards and miss your payments regularly you could be adding hundreds or even thousands of pounds on to you debt unnecessarily. Not only will you be left with a lot of money to pay but missing your credit card payments does nothing for your credit score.

Missing your credit card payments effects your credit score in a bad way as it shows you are not responsible. Most banks or lenders will understand the odd slip up and will let you off but if you are a serial offender then you will have to pay the chargers. Having a valid reason for missing a payment is understandable as it is easily done. If you are trying to sort your financial situation out and have transferred your balance to a 0% interest credit card it is really important to set up a direct debit to pay your monthly amount. If you do not like to do this as you like to asses your financial situation first, setting up a direct debit for the minimum payment will ensure that the payment is made on time and you can still do what you need to do. If your bill has not been set up to come out by direct debit and you do not have the funds to pay the bill when it comes around it is important to contact the bank before the payment date goes pass. Some banks and lenders can be understanding and they can sometimes offer extensions. This is not normally offered to customers who are constantly missing monthly payments.