Automate Credit Card Payments Now
Impulsive spending, emergencies, buying too many things that we just don’t need – these are all reasons we usually come up with reasons why people make late credit card payments.
It turns out, according to a new report from NerdWallet, the most common reason for late payments was people who simply forgot to pay.
The report looked at delinquencies (defined as credit card debt overdue by 30 days or more) and associated fees, and found that 35 percent of late payments could be attributed to forgetting to pay, followed by money for payment for basic necessities and the need to pay. in case of an unforeseen situation.
There is a simple forget-to-pay solution that you will find in almost every article on getting your finances in order: Automatic Payments . Set up your account for auto payment (you can do this on your issuer’s website).
If you’re worried that you won’t have enough money to pay your bill every month (which is a completely different matter), set automatic minimum payments.
The analysis found that $ 23 billion in credit card debt was overdue in the first quarter of 2018. In addition to late fees (the current maximum late payment is $ 38), accrued interest, and annual penalties (a higher interest rate that activates if you are late in payment), late payments will also appear on your credit report, thus lowering your account and will cause even more headaches in the future.
“If you don’t make payments for so long that the credit card debt is written off , that black mark could remain on your credit report for seven years,” says the NerdWallet report. “Not only that, but you may still owe money to the collection agency.” Paying at least the minimum will help you avoid all of this (although you should be able to pay your full bill – otherwise, you will spend too much).
When you set your account to auto pay, you can also request reminders by email or text (or both) from your bank when the due date is due. “As soon as you receive this warning, review your credit card statement to ensure that all transactions are valid and that you have money in your account to cover the scheduled payment,” the report said. Never miss a payment again.