People everywhere are feeling the economic slump. If their own budgets haven't taken a hit yet, they're likely to experience loss of money in their retirement accounts and other investments, or fear that their job may be on the line. Businesses are reporting decreased sales and many are closing shop because they are unable to keep up with rising costs against decreased sales. Even the credit card industry, an industry that earns billions of dollars in interest and late fees every year, is reporting that they're struggling.
In fact, the financial struggles of the credit card industry have resulted in some changes to some card holder accounts. For example, many credit card users report having their credit lines slashed – which in turn results in lower credit scores. Many people have mentioned having their interest rates increased, even though they've been making their payments on time all along. Still others have reported that their credit card due date has been moved earlier into the month, making it harder for them to pay their credit card bills on time (especially the first month or two when the person may not be expecting the change in due dates!)
Making Late Payments
As you already know, making a credit card payment even just ONE DAY late is bad news. While it may not reach your credit report for being one day late, it will almost always result in a late fee added to your account, ranging between $20 and $50. Paying a credit card late also can result in the lender raising your interest rate.
What you may not realize is if you were to change the due date of your credit card account, you may find it easier to make payments on time. Most credit card companies will allow you to change your due date if you just make a phone call and request it.
Changing Your Due Dates
If you find that on paper you earn more than enough money to pay all of your bills, but you're still making late payments from time to time the trouble may be that your income comes in a way that makes it difficult to pay bills by their due dates. Changing the due date on your credit card accounts and other accounts so that they are after your payday can eliminate this problem.
If you get paid bi-weekly, you'll want to stagger your due dates so that they are equally divided between the first part of the month and the second part of the month. Use your first check to pay for utilities and credit cards, and your second check to pay for your rent or mortgage. If you're paid once a month, you don't have as many choices! You'll need to make your due dates a few days after you receive your pay each month so you can go through and pay for everything all at once. If you get a weekly paycheck but find you have too many bills due in the same week, just spread your due dates out over the month so you can make your payments easier.
While credit card companies won't complain over getting money out of cardholders in the form of late fees, they don't like to spend their time and resources calling consumers about late payments. If you call and ask to change your due date, chances are they will be very accommodating – and in some cases, you can adjust your due date yourself through your online account management system. By selecting due dates that work better with how you receive income at home, you can eliminate paying late fees and reduce your financial stress level.
Change Your Credit Card Due Date
