5 Tips to Avoid Late Payments
You may have dozen of bills coming every month. Not all your bills are going to have the same due date. Failure to make your payments on time can charge you penalty and it will quickly get recorded on your credit history. All these can get you into serious financial issues. Only after you are charged with such penalties and late fee, you realize how much money you could have saved, if you had paid your bills on time. Fortunately, there are several ways that will help you to avoid making late payment. These tips are intended to make it easy for you to manage your finances and help you plan your payment in such a way so that you never have to pay another late fee ever again. So the five major tips are-
Know How Much You Owe And Stay Up-To-Date
The first step towards avoiding late payment is to know exactly how much you owe and maintain up-to-date records. Maintaining a record of your invoices will help you to keep an eye on your cash flow and plan the repayments accordingly. When you have a record of everything it will be easy for you to remember and make the payments on timely manner.
Make A Proper Planning
A foolproof way to avoid late fee is to plan to pay all your bills a week in advance. Whether you pay your bills online or via snail mail, one week is more than enough. You can also set a reminder on your Smartphone and pay your bills as soon as possible. You can note down the due dates on a daily planner or calendar right after you receive your credit card statement.
Set Up Automatic Payments
Once you have set up automatic payments, you can rest assured that you are never going to miss to pay your credit card bills on time. All you will need to do is pick the date and time when the funds will be withdrawn from your checking account. This particular payment system can be easily set up for a few months or perpetual. Be careful when you specify an amount. Paying off the balance of your credit card in full might not be possible for your every month. Therefore, you can preferably set a maximum amount that can be drafted from your account. Setting amount on an automatic draft will be a lot stress free.
When it comes to avoiding late fee, setting up automatic payments is the best way out. You will just need to make sure you have enough funds in your account to cover your monthly dues. Else you are going to end up with insufficient funds fee from your bank and then the credit card company will charge you a late payment fee.
Plan Your Monthly Bills
If you are not comfortable with an automatic payment system, you can take out some time aside every month and plan your monthly payments. You should first survey the bill and then determine the right drafting date so that you can avoid any fees. Scheduling a meeting with your bills every month will help you to keep your payments on track. Skipping bill payments just because you were too busy will add additional fee and other penalties. So, right after your payday, try to schedule a bill session and simply the situation. When you have enough cash in your bank account you can easily pay your bills with confidence.
Adjust Your Payment Due Dates
Whenever you are consistently late with your credit card bill and other payments for months you should first look at the factors surrounding such occurrence. Your payday might be several days after the due date. If this is the case you can work with the creditor and get the due date changed. Making such a request is common. Besides, the credit card companies always want their consumers to have an easy time with bill payments. If your creditor does not change the date, you should start looking for a new card provider.
Following these tips will definitely help you to avoid late payments. All you will have to do is be responsible with your finances, be organized, plan ahead and utilize automatic payments and payment alerts services. Finding what best works for you will ensure that you make your payments on time and avoid those dreaded late fees.