Related Credit Card Article

"Penalties may be severe for credit card late payers"

By Reno | August 25th, 2010 | General

Whilst most credit card users now realise that if they make a late payment or miss a payment on their credit card debt they will be hit with a late or missed payment charge many may not be aware of the full severity of the penalties that they may face if this happens.

According to a recent report the penalties on certain credit cards may be even more severe than many consumers realise, and a missed or late payment on their credit card debt could end up costing them dearly. Experts have warned consumers to ensure that they read the small print to familiarise themselves with just how much a missed or late repayment could affect them.

Reports have stated that people who have interest free purchase or balance transfer credit cards, for example, could really lose out if they miss a payment even if only by a few days, as this could result in them having the interest free offer withdrawn altogether which means that they will suddenly be hit with interest charges on the debt.

In addition to this consumers are hit with a £12 fee for missed and late payments, and could see their credit report or rating damaged, which can make a huge difference to their financial future in the long run. Having their interest free deals withdrawn could make finances even more of a struggle for these people.

There are a number of credit cards from a wide range of providers that offer generous interest free periods of well over a year on purchases and balance transfers, which can save consumer a huge amount of money in interest. However, cardholders should always ensure that at least the minimum monthly repayment it maintained and on time, as otherwise they could lose the interest free facility.

Tags: debt, Credit Cards, finance, interest rates, credit card

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