Benjamin Feldman over at Lifehacker recently wrote a revealing post about the dangers of not paying your credit card bill on time. There are many reasons why paying your bill late is a problem, but the article highlights three main consequences after the first missed payment:
- You are charged a late fee
- You get a bad mark on your credit report
- Your interest rate goes up
Missing following payments only gets worse. You continue to accrue interest and late fees while slipping further and further into debt.
After 180 days, the credit card compnay will charge-off and give your information to a collections agency. Once the collections agency gets ahold of you, they have the right to call you multiple times a day asking for your money.
You never want to be in this position, so make sure you pay off your credit card bills. If you need a way to automatically pay your bills, read our article on automating your finances.