One of the most common reasons people get a penalty charge from credit card companies is when they don’t make their payments on time. If you are being charged a lot, then it’s high time to start making sure that you pay your credit card statements on time monthly.
There are just some people who are more organized than others. This will never change. Some of us are able to say with safety that every month we sit down with our check book and balance it, pay all our bills, write all the checks and have everything in order. But others cannot do the same. We pay bills as they arrive, or put them somewhere we feel they are safe and hope we don’t forget about them, like on the kitchen fridge, and then when we get a chance or feel in the mood, we pay the bill off.
Now the surest way to pay bills on time is to arrange with your bank to have the bills paid automatically be direct debit or standing order monthly. This makes sure that bills will be paid. But you do have to make sure that you have sufficient funds in your bank account so the bank will not allow the credit card company to leave you with too small an amount. What’s worse, what actually could happen is that the credit card bill is for even more than you have available in your account so that your account becomes over drawn and your bank charges you a penalty for this.
If you aren’t sure that you have enough money in your account, then simply instruct that credit card company that you will only pay the minimum amount every month. While this means that you are more likely to have enough funds in your account to cover the payment, it also means that you will pay a lot of interest on your balance and it will take a very long time to clear your debt.
The best compromise is probably to pay a set amount each month that is more than the minimum but not so high that you will be left short.