Have you ever been late to pay back a loan?
It seems like banks and other lenders hit you with big fees right when you need money the least. This is the last thing you need, especially if it's hard for you to make your payments on time. It's like a spiral: you're late on a payment, so you get a late fee. The fee makes it harder to make your next payment, so you get another late fee or a late fee from one of your other accounts. Before you know it, you'll be spending all of your money on late fees instead of making payments.
So, how should you deal with this?
Well, the first thing you should know is that you can't be charged a late fee for paying a late fee late. Take the example of owing $100 on a credit card. If you were late, you could be charged $20. You'll still owe $100 plus interest the next month, but you'll also have to pay a $20 late fee. If you only have enough money to pay the $100 plus interest, pay that amount and tell the lender that it's your regular payment. You will still have to pay the $20 late fee, but you can't be charged a late fee because you didn't pay it back on time.
So, if you have more than one account, you should try to keep all but the latest one up to date. Don't be late this month on one bill and next month on another. Both months, stay late on the same account. This is because the account you're late on can only charge you a certain number of fees. If you are late on more than one account, each one can charge you a fee.
What to do if you can't pay your bills on time
The best thing to do if you think you might be late on a payment is to call the creditor and let them know. This is a lot better than just not paying the bill without giving a reason. Many creditors will let you move your payments to a different date or give you more time to pay without charging you extra. They would rather work with you to pay the bill than have you not pay it and leave them in the dark about what you plan to do.
If the creditor you're going to be late on won't let you reschedule the payments, you might try with another one and let that one get a little late instead.
