Credit Card Debt Blog

Americans cognize all too well how much it costs to utilize credit cards. The average household in the U.S. now have nearly $10,000 in credit card debt. Carrying such as debt is fine, as long as you recognize that there are costs associated with it. The interest rates aren’t particularly low and the fees charged for paying late or going over your bounds can be steep. Late fees of $39 aren’t uncommon, and they are assessed if your measure neglects to get by the owed date, even if it was delayed in the mail.

The credit card companies have got got been hearing to consumer ailments about expensive late fees and respective of them have responded. American Express and Citibank have got both recently introduced cards that are both advertised as having no late fees. There may be a turn involved; Citibanks’s Simplicity card carries no late fees as long as you do a purchase each calendar month within the charge period. But no late fees? Aren’t late fees the card company’s manner of making certain that you pay your measure at all? What haps if you don’t wage your bill?

That’s where the mulct black and white come ups into play. Your understanding necessitates you to pay your measure on time. With the Citibank card, paying late carries the usual fee of up to $39 if you pay late and haven’t made a purchase during the charge period. If you have got got made a purchase within the charge period, but you have still paid late, Citibank may, at its option, rise your interest rate. In fact, they can raise your interest rate as high as 23.99% above the premier rate. American Express will also raise your interest rate if you wage late twice in a year, though not as high as the 30% Oregon so that Citibank will charge.

With interest rates potentially rising to nearly 30% and applying to your outstanding balance, you’d be much better off keeping an existent card and paying the late fee than the 100s or even thousands of extra dollars you’d pay on a large balance after the punishment interest rate is applied. Of course, you can avoid both late fees and interest rate tramps by simply paying your measure on clip and maintaining a small balance or no balance at all. If you desire a card with no late fees, you probably already have got one. Don’t wage late, and there is no fee.