Avoid Credit Card Penalty Charges

Posted on March 9th, 2009

Acquiring penalty charges along with not being able to pay off your balance is a bad sign. You may have money management and extreme debt issues. While these charges are against the law and worth fighting, it is important to look at your repayment practices and figure out where you need help.

To avoid accruing these charges in the first place here are three simple steps to follow:
1. Know your minimum payment. Each credit card has a minimum payment which is in most cases based on a percentage of your overall balance on that card. Make sure you Keep track of your minimum payment for each card.

2. Set up an automated payment system - Set up a Direct Debit to pay off your card each month. This will allow you to be on time for your monthly payments. However, do keep in mind that paying only the minimum each month will take a considerable amount of time to pay off. For this reason whenever it is possible you should continue to mail in monthly payments, this will double your monthly payments lowering your debt that much more each year.

3. Don’t go over your credit limit.
It may be that your debts are simply from overspending. There are a number of ways to tackle this, shift to better value products. If you are getting credit card fines, this is a good way to deal with them.

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