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How can you avoid additional finance charges on credit card debt?

Michigan consumers who want to avoid late fees and other finance charges added to their credit card must avoid late payments. In fact, it may be beneficial for consumers to be aware of all the requirements of their credit card providers. While it is common for card issuers to credit an individual’s account immediately upon receipt of payment, there may be exceptions. It may, therefore, be a good idea to submit payments for credit card debt a few days prior to the due date.

The card provider may require certain conditions to be met by credit card holders in order to have payments reflected in their accounts on the same day. This may include a requirement for submission of the payment by a specific time on the due date. Consumers will generally have until 5 p.m. or close of business on that day. It is advisable to include an identifying account number with the payment to avoid confusion that may lead to a different account being credited.

It is important to ensure that the payment is sent to the correct address. A payment that is received by a different office of the credit card provider may reach the correct destination days later, resulting in a late payment and subsequent financial penalties. When online payments are made, the same care should be taken to ensure that the payment is made to the correct account.

It may be very convenient to settle your credit card debt by monthly electronic debit; however, the due amount often changes from month to month. If an unexpected large automatic debit goes through your account when there are insufficient funds, penalties may be incurred on both your checking account and your credit card account. This will have a negative impact on your credit score. By strictly following the payment instructions of the card issuer, consumers could avoid unnecessary penalty charges. Michigan consumers whose credit card debt has become overwhelming may want to consult with a bankruptcy attorney. to discuss the protection offered by personal bankruptcy.

Source: consumer.ftc.gov, "Using a Credit Card", , Aug. 24, 2014

Source: consumer.ftc.gov, "Using a Credit Card", , Aug. 24, 2014

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