Most Americans are all too familiar with the convenience that credit cards have to offer. In fact, the average U.S. household has $10,000 in credit card debt, alone. While having this debt is not necessarily bad, if you do not realize the costs associated with it, it can lead to serious financial problems. When your debt reaches are certain point you will likely have higher interest rates and incur fees for late payments or going over your credit limit. Late fees are accessed even if you bill is late due to the mail, these fees can easily reach $39.
There are some credit card providers who have responded to consumer complaints about the hefty cost of late charges and responded by advertising no late charges. However, there is typically a twist, which may still wind up costing you. For example, Citibank, who is one of the “no late fee” cards, requires you to make a purchase each month with the card to take advantage of this benefit.
However, you still have to wonder how they can charge no late fees, after all this is how most companies make their money. This is where the fine print comes into play. For example, if you pay late with a purchase Citibank reserves the right to raise your interest rate. This is not a fact that is told, which is why you should always read the fine print. Remember the old adage “Nothing in this world is free,” this definitely applies to the credit card industry, which you should understand to avoid creating a debt that you cannot handle.