“Credit card companies usually set small-dollar minimum payments, so there’s really no excuse for incurring fees for late card payments.”
“Yet many consumers fail to pay on time. In a new study, British researchers found a no-brainer solution that is highly effective: setting up automatic payments of our credit cards.”
“The researchers started out with a different premise: that customers might learn, over time, to prevent maddening late fees after having to pay them numerous times. The researchers roundly rejected this after following nearly 250,000 U.K. credit card holders over two years. When it comes to late fees, we do not learn from our mistakes.”
“What they noticed, however, was a clear distinction between card holders who incur late fees regularly and those who don’t or who stopped incurring the fees. Setting up autopay ‘all but eliminates the likelihood of future [late] fees,’ while the probability remains “persistently high” (about one in five) among people who did not, they said.”
It’s a no-brainer. Set up autopay for your credit cards!
Thanks to the Squared Away Blog: http://squaredawayblog.bc.edu/squared-away/autopay-ends-credit-card-late-fees/
Source: Financial Planning for Women