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Owning a credit card can prove to be very costly if you do not manage it effectively. Of the many fees associated with the credit cards, the annual fees and late payment fees are the most common. Before the implementation of the CARD Act in 2009, customers were at the receiving end with banks increasing the late payment fees without prior notice. However, with the implementation of the CARD Act, this practice has been curtailed to a great extent. This has caused banks to lose out on a lot of revenue, but they are still making a lot of money from the fees, thanks to people who don’t pay their credit card dues on time. Not paying the dues on time does not only set you back by a few dollars, it also has an impact on your credit history. It is imperative to pay off your dues on time and for people who are unaware of how to do it, here are some tips to help you.

The best way to avoid late payment fees is by paying your credit card dues twice each month. Don’t wait for the credit card billing statement to arrive at your doorstep and then set aside funds. Rather than that, make two small payments each month to avoid defaults on your account. Another option is to request the banks to change the due date to coincide with the time your paycheck comes in so you don’t run short of funds to make at least the minimum payment due. You can also ensure that the date coincides with the due dates on the other bills so all payments are made on time.

Opt for direct debit payments from your accounts to avoid missing your payments. However, you need to ensure you keep your account sufficiently funded to avoid the check returns. In addition to the minimum payment, ensure you pay at least 2% of the total outstanding so the subsequent payments go down and you can clear off your debt fast without defaults.

If the payment due date is pretty close by, sending the check to the card company will not work because it does take time for the check to reach the account. Hence, it is recommended that you either make the payment by phone or the internet so the funds reach your account on time and prevent you from having to pay late payment fees.