Payment Card News

Late Fee Gouge

634 0

A new survey shows that consumers shelled-out $55 billion from late fees from all kinds of loans last year. Credit card late fees may account for more than $10 billion in 2006. Unfortunately, interest rates may be reset after falling behind in payments. Cambridge Credit Counseling says if a consumer makes a late payment on an account with an interest rate of 12%, the rate could skyrocket to as much as 29%. Assuming that the account had a balance of $5,000 prior to the increase, the consumer would have expected to repay $7,200 to retire the debt. But, after the penalty rate was applied for late payments, they would have to repay a shocking $12,000 on the same debt, an increase of 118%. The best way to avoid a late fee is to send in your payment the moment you receive your monthly statement. For more information visit: “http://www.cambridgecredit.org”:http://www.cambridgecredit.org

Leave A Reply