Tag Archives: late fees

Late Fees Kill Your Savings

My friend and I caught up on movies. He’s a big moviephile and loves every genre. Good reviews, bad reviews, it doesn’t matter to him. He’s been getting his fix from his local RedBox, DVD rentals for $1 a day. Sounds like a great deal and I’ve used them myself. However, he told me some disturbing news. He borrowed five movies in a day and had planned to watch them throughout the day and night. Life happened and a week went by. End result? No movies watched and late fees galore. If you add up the numbers, that’s 5 DVDs, 7 days, $1 each for a grand total of $35. He could have bought those DVDs outright for his own collection. This reminded me about other late fees.

Remind Yourself

Pick a bill, any bill. Personally, I have to deal with my rent, credit cards, and utilities. Others may need to also remember their mortgage, car, and cable. When I first moved, I was thrown off by the sheer volume. I have settled down by setting monthly reminders a few days before my bill’s due date. I selected a few days ahead in case of unexpected events. There were times when I cut my bill payment too close and I ran into a website being down due to maintenance. Give yourself ample time to pay your bill on time.

Automate Your Payments

My water bill is now being automatically deducted from my checking account. One less thing to think about, but you need to be diligent and check your numbers. Although your bill is being paid, you shouldn’t set it and forget it because it is up to you to catch billing discrepancies.

Time Is Money

If you go too delinquent on a cell phone or other utility, the company pay even cut your service. You will then have to scramble, explain yourself, and get your service reactivated. Besides burning valuable time, you may get hit with a reactivation fee as well!

Final Thoughts

Ten dollars here, fourteen dollars there, may not be much, but compared to your actual bill, that is a huge percentage loss that cuts into your emergency savings or retirement funds. Don’t forget, besides the late fee, if you miss a credit card payment, they will also slap you with interest. If you don’t change your mindset, you can only blame yourself for your debt not improving or your nest egg not growing. Make that change today!

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Life And My Finances posted Goals Update and Weekly Round Up 24 and also featured My Favorite iPhone Apps

Money Cone posted Good Reads and also featured My Favorite iPhone Apps

Pay Your Bills On Time Or Face Double Jeopardy

I know I’m not using Double Jeopardy correctly, but just hear me out. Last week was a hectic week and life happened, again. In the chaos I missed making my credit card payment. Although I get email reminders, I must have hit the snooze button. Thankfully since I use Mint, it detected the $11.00 late fee.

Dodged A Bullet

I called my credit card company, explained my situation, and requested a courtesy fee reversal. They were happy to oblige. I immediately setup email and text alerts ten days before my bill is due.

Second Bullet

A day later, Mint saw credit card finance charges. It was worse than the late fee ($14.48)! What to do? Think! I almost convinced myself there’s no way to dodge this because it was a legitimate finance charge for my one day loan on my balance. But I decided to ask for a reversal anyway. Doesn’t hurt to ask right?

Final Thoughts

Voila! Like magic, they made it disappear. I dodged two bullets, but more importantly I need to remember my lessons learned. Pay your bills on time! Who needs whopping late fees and finance charges tacked on to your credit card debt? Even more insane is letting this cycle repeat itself. You would be paying interest on your interest! No wonder people get crushed under a mountain of debt. Secondly, it doesn’t hurt to ask. Take a shot in whatever you do. For example, asking for a fee reversal, applying for a student credit card, requesting a guest post opportunity, or proposing an advertising campaign. You will miss 100% of the shots you don’t take!

Stay Inspired!

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