None of us like paying late payment fees on our credit cards. The good news is there are simple ways to avoid late or missed payments that we can share with you. Here are our tips to help you avoid missing a credit card payment and being charged a late payment fee.
Give me the main points
- Your credit card statement tells you exactly when your payment is due and how much you need to pay. Check it each month.
- Change from paper statements to online statements to avoid mail delivery delay that might result in less time to pay.
- Consider setting up payment reminders.
An automatic payment arrangement is a good way to avoid missing a payment. Just make sure you always have enough money in your account to cover the payment.
Check your credit card statement
To avoid a late payment fee you need to pay your ‘Total minimum monthly payment’ by the statement ‘Due date’. Just remember, making the minimum payment by the due date is not enough to avoid paying interest.
You can find your ‘Total minimum monthly payment’ and ’Due date’ information on your monthly credit card statement.
Online credit card statements
Waiting for your statement to arrive in the mail only reduces the amount of time to pay. You can generally register to receive your credit card statements online through internet banking. Then you’ll receive a reminder when they’re ready to view. You are then usually able to access your statements anytime and from anywhere you have internet access.
Pay during your statement payment ‘window’
Find out how many days make up your payment ‘window’ – which will vary by type of credit card. To avoid a late payment fee you must pay at least the minimum monthly payment on your statement, during this period.
Keep in mind that BPAY payments, cheque payments and transfers from different bank accounts can take several days to receive and process and your payment must be received by the payment due date.
You can make payments before your statement period ends to help reduce your credit card balance and stay under your credit card limit. But, you’ll still need to make the minimum monthly payment shown on your statement to avoid a late payment fee.
Set up reminders and automatic payments
We recommend you either set up an email or SMS payment reminder (where this is available) or a direct debit through internet banking to avoid missing a payment, especially if you’re going on holidays.
If you’re in financial difficulty
If you’re struggling to make your credit card repayments because of financial difficulty, contact your bank to talk about your options.
We’re here to help
Have a chat to a financial adviser who are equipped to provide you with advice to help you manage your debts efficiently.
Office Manager - Ambleside Wealth Advisers
I’d like to think that having to share one bathroom amongst my four siblings and taking it in turns to ‘get the cows up to the dairy’ for Dad gave me some early insights into what it takes to work alongside others. Over the years, I have learnt that the most important ingredient required to create a successful team is to be supportive.
So, to put it plain and simple, I really like to help. I like helping my team out wherever they need assistance and I like finding new, innovative ways to increase our office efficiencies, so the team can achieve that work, life and balance we all strive for. I also like utilising social media platforms to help spread the benefits of good advice. I aim to continue to support not only my work colleagues but the local community so that little stresses in their lives can be a thing of the past.
It is important to note that all content published on my behalf, may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.