How to Avoid Credit Card Late Payment Fee

It’s not fun when you realize you’ve missed paying your credit card bill by its due date, after all it comes with a hefty late payment fee. It becomes a leaking tap into your financial savings if you are forgetting to pay credit card bills repeatedly.

Below is the illustration to show calculation of late payment charges based on various bank’s statement. Generally below three components are charged as part of late payments:
  1. 1. Interest on outstanding amount
  2. 2. Late Payment fee
  3. 3. Service Tax on above two items
Considering a late payment fee of Rs. 400 (typically charged by banks in India), Service tax at 12.36%, and an outstanding balance amount of Rs. 10,000 on your credit card, you would have to pay approximately Rs. 1,500 towards interest and late payment charges, below is rough calculation for reference:
Total Amount Due = Interest + Late payment fee + Service tax + Outstanding amount
= Rs. 1000 + Rs. 400 + Rs. 110 + Rs. 10,000
= Rs. 11,510.0

Remember, even if you have Rs. 100 balance from your last credit card payment, the bank will calculate interest for entire outstanding amount as per last bill. All your new transaction will also cease to have grace period and will be charged interest instantly.
If you are trying to save money, the first thing to do is stop allowing this to happen by using technology enabled Android app. There are so many bill management apps available in market and TimelyBills App is becoming more popular out of them. Free TimelyBills is a fastest growing ‘Bills Reminder & Payments’ App with awesome user experience. I tried many apps and found TimelyBills far ahead in areas like intuitive user interface, smart reminders and online bill payment functionality which makes this app unique across apps I have seen. Also TimelyBills app is a free app with full version and not a trial app. Just give it a try TimelyBills App.

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