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The amount of profit that credit card companies have made off of credit card late fees has reached record levels in the last few years as more and more individuals find themselves unable to make their payment on time.  Credit card fees are destroying family budgets by adding additional charges to the credit card, making it more difficult to pay off and causing the payment of more interest to the credit card company.  Making a payment late can affect a person in a number of ways as well, such as a rise in the interest rate for the credit card, less credit available on the credit card, and a negative entry on the person’s credit history.

Many credit card companies have increased the fees for a late payment by a significant amount over the last several years.  In the 1980’s, the late payment penalty may have been $10 at most credit card companies, but now, the fee for making a late payment on a credit card is close $40 for any credit card company.   If your payment is late, you will be paying the credit card company a large amount of money that you are getting no benefit from.

How Can I Avoid A Late Fee?

There are many ways to avoid having to pay a late fee to the credit card company.  One of the easiest ways to prevent these charged is to pay your credit card bill as soon as it arrives in the mail each month.  By not waiting until the last minute to make the payment, you make sure that the due date for the payment does not slip your mind, triggering a late fee.

Another way that you can use to avoid credit card late fees is to post reminders in prominent places to pay your credit card payment on time.  Notes on your calendar or an alert on your PDA can warn you that the day is approaching that you will need to make your credit card payment.  This will serve as visual cue to check the balance in your bank account and mail the check to pay the bill. 

Many credit card companies have multiple ways for their customers to make their payments and some can be useful if you have forgotten to mail off your payment.  Other methods of paying your credit card include payment by telephone, which involves talking to a customer service representative, and making a payment on the credit card company’s website.  Credit card late fees account for a significant portion of the fees charged by credit card companies, giving the credit card company free money out of your pocket by paying your credit card bills a day or more late.