Ever missed a payment on your credit card? Have you then been thumped with unexpected charges from your bank?
Banks conduct regular reviews on your credit card limit and interest rate, based on a number of factors of which repayment history is one. Thoroughly check the terms and conditions on your credit card to avoid nasty surprises. You might notice that failing to make just one payment on time might mean a reduced credit card limit or possibly even a higher interest rate, making it harder for you to cope with debt.
Banks calculate and charge interest differently; they also penalise late payments differently. Generally, you can expect to pay up to $60 if you are late in making a minimum repayment. So may people focus on interest rates and fees, when many cardholders (especially those who pay late) would better benefit from looking at how interest is calculated and think twice before choosing their credit card.
When it comes to managing credit cards and to make sure your credit card debt stays under control, keep in mind two simple rules:
- If you think that you won’t be able to pay your card off in full every month, forget about ‘free days’ and try to get the lowest rate possible (aim for under 12%).
- Set up a reminder for your minimum monthly repayment. You might want to synchronise the repayments with your pay day.
Our goal at Life After Debt ® is to provide debt solutions that help you STOP the collections calls and AVOID legal action or Bankruptcy. If you are struggling with unmanageable debt, contact us today to obtain a free and confidential financial assessment.