Money Saving Tip: Pay Your Bills on Time

In Nine Steps to a Great Credit Score -- Save Yourself Thousands of Dollars I noted how a good credit score can save you thousands of dollars. Then in Boost Your Credit Score I highlighted the fact that paying your bills on time was the single-biggest factor in determining your credit score. So how big of a deal is paying your bills on time? Consider this fact from Bankrate.com found in the March issue of Money magazine:

After one late payment, the average family will pay an extra $1,129 annually in higher interest and fees.

It's just a highlighted fact in Money, not an article, so we don't get any information on how these additional fees come about (maybe through adjustable rate mortgages and/or credit card balances), but even if the amount is half this in reality, it's still a lot of money! (especially for missing only one payment) So the money saving tip I get out of this is:

Pay your bills on time!!!!

Comments

[carolina_pirate]

Businesses love when you pay late. That is where the money is...late fees and more interest. Im not sure if they will ruin your credit for just being slow paying.....if your a slow payer......You are a better customer then someone who pays on time....

Banks hate you people that never bounce a check and always keep the minimum in your accounts. The best customers are those who consistently bounce checks and pay fees.

Peace from the future heretic of the PF world
http://thegreedypirate.blogspot.com/