When you are facing an overwhelming debt situation, it is very tempting to stop paying attention to the details. If you can't pay off an account anytime soon or even make headway, is it worth the effort to look too closely at what is becoming a depression or anxiety-inducing situation? The answer is yes -- you should always pay attention to the details, even if you're struggling to make minimum payments each month. In fact, you should pay attention especially if you are struggling.
If you turn away too long, credit card companies can run up your balance even when you aren't buying anything. Did you know that many credit card companies charge fees for all types of things? In some cases, if you transfer balances to a lower or no-interest card to try to save money or catch up, you can end up worse off because of these fees.
First, almost all credit card companies will charge a fee if you are late with a credit card payment. Late is typically in the $25 to $35 range, but could be more or less depending on your account details. In addition to a one-time late fee for each late payment, credit card companies might add additional finance charges, up interest rates or back out of no-interest rate deals based on the number of late payments made. All of this information would be in the fine print you agree to when you open a card or transfer a new balance.
If you go over your credit limit with an account, you are probably being charged another fee. If you're struggling to make a monthly payment large enough to bring the balance under the limit, it doesn't help when a fee keeps bumping you back over it, resulting in more fees.
These are just a few ways credit card companies continuously bring up your balance. If you are dealing with such issues and you can't see a way out of the struggle, consider bankruptcy as an option. Bankruptcy lawyers can help you understand all of your options so you can see a way out of the debt struggle.
Source: Dummies.com, "Look Closely at Your Credit Card Finance Charges," Gail Perry, accessed March 23, 2016