In challenging economic times, consumers may face the hard choice of paying for a necessity or skipping a credit card payment. Current data shows 8.9 percent of credit card balances are in some form of delinquency right now. Financial advisers remind us there are very good reasons to avoid the temptation to be late on a credit card payment.
Most people understand a late payment can negatively affect their credit score. A card issuer may decide to report a late payment to credit bureaus after being 30 or more days overdue. Another problem with missing a payment is the balance on which credit card interest is charged remains high. So, if you think you are saving some money, you’re creating more debt.
Missing a payment also can trigger a late fee, which can be as high as $40. The Consumer Financial Protection Bureau issued a ruling in 2024 that late fees cannot exceed $8. But the rule has yet to take effect. Worst of all, a late payment may cause the card issuer to impose a penalty annual percentage rate (APR) to apply to any new card purchases. That rate could be as high as 29.99 percent.
You Shouldn’t Be Strapped for Cash in Retirement
Additional retirement income can give seniors a little more breathing room. That’s one reason why Council of Seniors is working tirelessly to get Congress to pass The SAVE Benefits Act. You need this bill to pass because the annual Social Security cost-of-living adjustment (COLA) has fallen short of what’s needed in recent years. The amount of $581 was withheld from seniors, and it must be returned.
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