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Quick Credit Lesson #12:
Late fees and over limit fees can increase your credit card debt to another level, a level where the risks of your credit history being ruined is very high. While some creditors negotiate with their clients and waive their over limit and late fees, most creditors don’t. This is where debt consolidation program or a debt management program comes into place. Once enrolled into the program, the credit counselors talk to your creditors and help you in eliminating late and over the limit fees.
Late and Over-the-Limit Fees - Don’t send your payment in late - not only does it hurt your credit, but you’ll be charged a late fee of up to $35. A similar fee is charged when you exceed your credit limit. Many people believe the card won’t work when it’s maxed out - this isn’t always true. You will continue to be charged an over-the-limit fee every month until you bring your balance under the limit.
LIBOR (London InterBank Offered Rates) - Five major London banks daily determine these fixed rates for specific maturities. What does this mean to you? LIBOR may be used by some banks instead of the Prime Rate to set Annual Percentage Rates.
Lien - A legal claim made against a borrower’s property in order to secure a debt.
