No Late Fees

Late fees are an absolute killer to any budget – whether you are building up a money surplus or trying to get out of debt.  The worst thing about late fees is they are an entirely unnecessary part of your cost.  They are akin to having an unforced error in tennis in the sense that you are the cause of your own harm.

Companies want you to see late fees as a part of life.  In fact, late fees are built in to the forcasting of revenue.  Don’t be one of the people that feeds them this extra money.  Don’t be casual with late fees. You obviously know why late fees are harmful to you, but do you know how bad they hurt your pocket book?

Let’s say you rent a DVD for $3.99.  You have five days to watch it and end up forgetting to return it until day 6.  This extra day adds $1.99 to your charge.  In effect you paid $6.98 to watch 1 DVD.  Ask yourself, would I have paid $6.98 to watch the same DVD when I rented it?

Stated another way, you just added another 48.87% to your initial purchase cost.  This is an unbearable increase to any purchase and a highly inefficient use of your money.

Stop thinking in terms of, “Oh it’s just a $1.99″ or “It’s just another 99 cents.”  Start thinking in terms of percentages and you will become much more efficient.

In terms of late fees, eliminate them completely.  You can not afford to pay for any unnecessary charges.  Late fees come with many purchases and in a variety of ways – credit card payments, video rentals, sign-up late fees.  To stop paying late fees, make sure you keep yourself out of situations that will put you any where close to the deadlines.

Here are my tips on avoiding late fees:

1. Keep a detailed to-do list that you review every morning with dates assigned to tasks.  Follow this list religiously.

2. Put items such as video rentals near the door so you take them on your way out.

3. Avoid purchasing, returning, or paying anything at the last minute.  If you wait until the last minute, you have put yourself in a position dangerously close to being late and having to pay associated fees.

4. If you are unsure of a deadline, call and ask when exactly it is.  Don’t put off learning this information until later when and/if you get around to looking for your papers.

5. Stay aware of items that come with late fees and HOW MUCH those late fees actually cost you.  Huge fines are a great motivator to pay early and on time.

If you do incur a late penalty, it never hurts to plead your case as a valued customer and attempting to reverse your fines.  Emphasize how much business you provide to that particular company and any referrals you have sent their way.  If you have met a road block with an entry level employee or receptionist, ask to speak with a manager.  Sometimes persistence pays off with late fees and you can take red money off the books.