Penalty fees for making late payments are some of the most outrageous, yet preventable, charges consumers are facing today. Much of the time, consumers aren’t even making the late payments because they don’t have the funds — they’re doing it because they forget. One of the surest ways to stop making late payments for good is to embrace a free bill reminder service, such as Manilla.com, so that you get automatic SMS or email reminders to pay your bills on time. That means no more late payments and no more late fees. Until then, this is what you could be facing.
[More from Manilla.com: Why You Need a Bill Reminder App]
1. Credit card late fees. Most credit card companies issue a penalty fee if you fail to make a payment by the respective due date. Oftentimes, you’ll be charged $25 for your first violation, but you could be charged $35 (plus interest) for each violation thereafter.
2. Late payment on property taxes. If you make a late payment on your property taxes, you’ll oftentimes be charged a fee (plus interest — see a theme here?) and see it automatically added to your bill. But, be careful: If you acquire enough penalty fees, they can add up to a substantial amount and could even cost you your home. Because states heavily rely on the property taxes they receive, they pay serious attention to on-time (and not-so-on-time) payments.
[More from Manilla.com: How to Take Advantage of Online Bill Pay Reminders]
3. IRS Failure-to-File Penalty. If you were wondering if you’d get penalized for forgetting to file your taxes, the answer is overwhelmingly yes. If April 15 rolls around and you have not requested an extension, you’ll be charged right away. If you did request an extension and still failed to file on time, you’ll be charged on your extension date. Typically, the penalty fee is equal to 5 percent per month on the owed tax liability, but it can never exceed 25 percent of the originally owed tax amount.
[More from Manilla.com: Fees, Fees, Fees! How to Get Rid of Them]
4. Mortgages. Defaulting on a mortgage payment is never a good idea. It can drastically lower your credit score and it can ultimately lead to the take-over of your home or property. First, though, come the late fees. If you default on a mortgage payment, you could end up paying interest from 18 to 85 percent on your outstanding mortgage payments. It makes the average credit card interest rate (16.75 percent) look like nothing.
More from Manilla.com:
- What To Do If You Default on a Loan
- A Bill Reminder Service That’s Worry Free
- 3 Bills You Don’t Want to Forget to Pay
- Politics & Government