How Late Payments Can Hurt You

Many people create a very tight budget that leaves them very little room for flexibility. Often, these individuals will live from paycheck to paycheck and have no or only small amounts of money left over for saving purposes. For those in this situation, any missed work time may result in their inability to pay off bills by the set due date. Unfortunately, late payments often have terrible consequences for the consumer.

Penalties

Late payments can hurt consumers in several different ways. Debtors may experience a dip in credit scores, a rise in credit card interest rates, and an increase in fees and rates tied into all other accounts. All of these consequences may severely complicate one’s financial state:

• Credit Scores: These scores reflect one’s reliability with regards to paying bills off on time. Low credit scores will seriously hinder one’s chances of obtaining a mortgage, loan, or insurance coverage.
• Credit Card Interest Rates: Failure to pay credit card bills on time will result in a higher interest rate – sometimes up to numbers as high as 20%. These days, many credit card companies are raising rates for people who miss payments to other creditors based on “reliability” reasons.
• Fees and rates in other accounts: Many times, other companies – auto insurance providers in particular – will raise rates based on a low credit score.

These penalties may simply escalate one’s financial troubles, and in these situations, many will feel as though their debts are spiraling out of control. In situations like these, the assistance of an experienced bankruptcy lawyer can help debtors come to a reachable solution.

Contact Us

If you are seeking financial assistance to help you with your debt, contact the Austin bankruptcy lawyers of Slater, Kennon & Pugh Ltd.LLP today at 512-338-1100 to speak with a qualified attorney about your situation.