Late and over-the-limit fees do more than just cost you money. They also raise your minimum payment, thereby making it harder to meet your minimum payment for the following month.
In order to eliminate these nuisance fees, you must bring your account current. There are three ways to do this.
- Pay down balance: Getting the balance below the credit limit is not enough. If you do not account for additional interest and fees adding to the balance, it can push the account back over the credit limit, causing more fees. Even annual fees can cause you to exceed your available credit.
- Hardship: If a life changing event contributed to you falling behind, you may sometimes be granted hardship consideration. The event must be severe, such as job loss or major medical emergency. Also, it must be feasible for you to get back on track within 6 months. A hardship consideration can be difficult to obtain.
- Re-age the account: Credit card issuers will frequently be willing to re-age the account, meaning that it would reflect as current and all subsequent late and over-the-limit fees would be waived. You must be accepted into a debt management program in order to qualify for account re-aging.
For more information on how to eliminate fees and get back on track, speak with a financial counselor. We can show you what options could work to help you regain current payment status and avoid fees.