Missing a credit card payment may have serious consequences, especially if your balance is large. While paying only the minimum amount due each month will cost you substantial money over time in interest fees, skipping the payment entirely often triggers late fees or interest penalties. For example, some cards may boost your interest rate by as much as 12 to 15 percent, quickly accelerating the amount you owe. Depending on your past record and their policies, some credit card issuers may even cancel your card or place a negative comment on your credit record. If you're unable to make a payment, it's best to contact your credit card issuer. Explain the situation and ask if you can arrange a payment plan. Be diligent in paying according to the new schedule and pay more than required if possible. This will save you money in interest fees and pay off the balance sooner. Avoid charging anything else on the card until the balance is at zero. While a few cards may let you skip one payment without a late fee, this isn't the bonus it might seem. Keep in mind that your total bill will continue to increase, due to an additional month of finance charges.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
