If you have ever missed a loan payment or made a late payment then you must know about all the heavy penalties and charges that your bank or your creditor will impose upon you. Fascinatingly enough, this is just the thing you do not need at the moment.
But, this is what you get when you miss a payment or even are late at making it. When you get on this spiral, it is hard to come out of it. You make a late payment and then you are charged with late fees. Now the fees will make it even more hard to keep up to your next due payment, so another late payment and yet another fee. Soon enough all you are paying are the late fees and the payments are piling up.
So, is there a way out or a solution for this problem?
First, the creditor cannot charge you late fees when you pay an already present late fee. This means that suppose that you owed $200 on your credit card. You are late and incur a late fee of $20. Now, the next time you owe the $200 along with interest as well as the late fees. If you happen to have only $200 and interest then make that payment and inform your creditor that you are paying for that regular payment. This way you still have to pay those $20, but, you will not be charged any extra fees on that.
If you have more than a single account, then it is wise to keep up to your payments on all your accounts except the one on which you have been late already. Do not be late on this account one month and then on the other the other month. It is better to be late for those two months on that same account.
The reason is that they can charge you only with so much late fees. Instead, if you are late on two different accounts then they have all the right to bury you in fees.
In case you foresee that you will be late on making a payment then it is best to call your creditor beforehand and informing them. This surely is better than simply not paying your bill and not even explaining it.
Several creditors will also reschedule your monthly payments or even give you some extra time without any extra charge. They would rather have their bills paid instead of allowing them to go unpaid.
If one of your creditors does not reschedule your payment then you can try that with your other creditor.
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