I stuffed up: I forgot to pay my credit-card bill. The amount wasn’t much–$190.54–but because I didn’t pay it before the due date, the bank charged a $5 late-payment fee and $12.24 in interest*. I also had to pay all that was owing on the card, since interest-free days only apply on purchases if the closing balance is paid in full on the due date of each month. 😦
While it’s good to put off bill payments for as long as possible, it’s baaaaaaaaaaad when you fail to cough up when the money’s due. Nasty things happens: extra fees, accusatory letters from the creditor, utilities being turned off…Continual late payments also affects your credit rating, making it harder for you to leverage a good deal whenever you want to borrow money.
So what’s the best way to tackle bills? Continue reading