Jul 27, 2009 6:30 pm US/Eastern
Paying Bills On Time Can Be Easier
Credit Card Companies Just Itching To Charge Late Fees
NEW YORK (CBS) ―
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Joe Raedle/Getty Images
In the last year, nearly 34 million Americans were late making a credit card payment. For many, that's an unavoidable cost of living paycheck to paycheck, but there are some ways to minimize those charges, and in some cases, even eliminate them.
Credit card companies charge an average late fee of $39, and yet 26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time.
Janet Siroto, executive editor at the Good Housekeeping Research Institute, said it's very easy to get charged for being late.
"If your check arrives just a day or two after that deadline, you will get hit with a late fee," Siroto said.
To get back on track to paying your bills on time, experts say organization is the key to staying on time. First, organize and file them by date, keeping a calendar of when you need to mail the payment so it gets there on time.
If most of your monthly bills are due on the same day, Siroto advises spreading out the dates for the payments.
"Talk to your lenders about changing your due dates and ask them to move it from say the 10th of the month to the 30th of the month to better accommodate your cash flow needs," she said.
If you're getting socked with one big bill, like your mortgage, ask your lender to convert the loan into bi-weekly payments. The conversion might trigger a one-time fee, but you'll pay less interest over the loans life.
"Over the course of a 30-year, $100,000 loan at 5 percent you would actually save $17,000," Siroto said.
Another way to avoid late fees is by paying your bills online. Most bills can now be paid just a day before the due date and sometimes even on the same day its due.
Some creditors may also be willing to offer a one-time extension, if necessary.
Experts say credit card companies are more eager to work with their customers these days. If you continue to find you simply can't pay all your debts, you should consider seeking the guidance of a credit counselor.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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