What a missed credit card repayment could mean to you
It is very easily done by most of us – an overlooked or late credit card payment is not unusual when you lead a busy lifestyle trying to juggle work and family as well as manage your finances. However, recent reports have highlighted just what an impact a missed credit card payment could have, potentially costing your several hundred pounds and possibly resulting in a tarnished credit history, which could affect your ability to get finance in the future.
 According to recent information released by moneysupermarket the cost of a missed credit card repayment could amount to around £278. This could also mean the loss of special privileges and benefits on the cards, as well as damage to your credit rating and history.
For example, those on a 0% interest credit card could lose the introductory interest free period as the result of a missed repayment, leaving them to deal with paying off their debt at the standard APR which could end up costing them a small fortune depending on their balance.
There are over thirty credit cards on the market that will revert back to the typical APR from the 0% interest rate as the result of a missed repayment, and consumers could find themselves facing extortionate and unexpected interest charges if they miss a repayment on one of these cards.
Rob Kenley, head of credit cards at moneysupermarket.com, said: "Those on a zero per cent balance transfer introductory period may not be aware of the severe penalties a single missed payment can result in."
Many people that have found themselves in unmanageable levels of debt through credit card spending, and many have turned to debt management agencies and groups to help them to sort out their finances. However, this has invariably led to missed repayments on credit cards, and for many consumers this has simply added to their level of debt, with some card issuers that were previously charging no interest applying hefty interest rates to the account and swelling the amount that the consumer needs to repay in order to clear the balance.
Tom Smith
16th February 2007
More Information:
- How To Avoid Paying Those Pesky Credit And Debit Card Fees
It seems that UK credit and debit card providers would like to charge us each and every time we use our plastic cards these days. While the charge for each separate individual transaction may not seem like much, add them up over a month or two and suddenly the amount has some value. So, how do we avoid having to pay pesky fees to UK credit and debit card providers?
- Common Credit Card Mistakes
With credit cards now outnumbering people in the UK you would be right to assume that not everyone in this country uses their credit cards either correctly or wisely. But what are the most common mistakes that credit card holders make when using their credit cards?
- Causes and Cures Of Credit Card Debt
For some, credit cards can prove a temptation too far, and soon they find themselves in debt. Simple precautions will keep the savvy card holder from such dangers.
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