Credit Card Late Fees - How To Avoid Them

Credit cards have become a common means of paying bills. It is very
convenient because you need not make any cash payments from your pocket.
Though credit cards are easy to use, they come with a fee that is charged by
the credit card company. It is advisable to pay credit card fees on time
because being late will cost you a lot of money.

Many credit card companies charge a penalty for late fees, so it is
advisable to pay up in time, to avoid the penalty. The average late fee for
credit card used to be 12 dollars in 1994; by 2004, it rose to 32.65
dollars. It has now gone up to a whopping 39-40 dollars. Hence, it is
prudent not to delay your payment.

You can stay away from late fees by various methods.

1. The best way to avoid late fees is to be fully aware of all the
conditions and restrictions related to your credit card company. You can get
the information of the guidelines on the back of the credit card bill that
your company sends you. Try to make use of the specified instructions of
payment in order to ensure that your money reaches them on time, without any
problem.

2. Having a good record can always help. As a responsible credit card user,
you must try to maintain a good record of your payments because many
companies that issue credit cards make considerations on the late fees if
you have a good payment record. They do this as a special courtesy for their
responsible customers.

3. If you forget to pay your credit card fees, and the due date is already
upon you, you can avoid the late fees by paying via the telephone, instead
of using the mail. To enable this, there is a toll free number on the back
of every credit card. In order to make payment you need a check number and a
bank routing number. You can find these numbers at the bottom of every
check. Once you make the payment you should tear off that check, as you
cannot use it again. Some credit card companies keep this facility free of
cost for their customers while others charge about 5 to 20 dollars. Make it
a point to ask your credit card company about this facility.

4. In case your company does not offer you the facility to pay your bills by
phone, then you can always use express mail for payments. Although using the
express method may cost you extra money, it will be less than the late fee
that your issuer may impose on you. Besides, it will help you send your
money to the company as soon as possible.

5. Try paying online. Many companies accept payment through the Internet.
This method can prove to be very useful if you are traveling.

6. If you do not have the required cash to pay your bills and the due date
is approaching, then you can talk to your credit card company and set your
own due date for payment. Set the due date at a time when your salary
arrives. Hence, enabling you to pay your bills without late fees.

Therefore, in order to keep your credit card use hassle-free, remember to
make your payments on time and in the right manner specified by your credit
card issuer. Try and stay out of the late-payment cycle to avoid the extra
cost in the form of late fees.

About The Author: Joe Kenny writes for the UK personal finance sites
http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk