QoD: #1 reason people give for paying their credit card bill late? (2024)

FAQs

What is the #1 reason that people give for paying their credit card bill late? ›

Question of the Day: What is #1 reason that people give for paying their credit card bill late? Answer: They forgot! Questions: Why do you think that so many people forget to pay their credit card bill?

Not Enough Money

Some common underlying factors are all bills due at the same time, irregular paychecks, insufficient paychecks, paychecks that come after the due date, or overspending. Additionally, there is the potential that a service provider is overcharging the consumer on their bill.

One major reason people pay bills late: They simply forget.

Many people are late on their credit-card payments because they simply don't have the cash. But an even more shocking number don't pay because they, well, forget.

During this call, highlight that you're a good customer who routinely makes payments on time and that this was a one-off situation while being respectful of the rep and asking politely. The stronger your on-time payment history is, the more likely your credit card company will waive the late fee.

So even if you mail a payment before the due date, if it gets delayed in the mail, it will still be considered late. If you make an online or phone payment, it must be done by the due date. Online and phone payments made the next business day will be considered late.

Even if this is the first and only your payment is late by 30 days, it can still impact your score—by about 100 points or more, depending on the scoring model and your current credit score.

Late payment excuses can have severe effects on your business: Cash Flow Constraints: Excuses for late payments can disrupt your cash flow, hindering your ability to meet financial chores and invest in growth opportunities.

You may incur a late payment fee, penalty interest rate and risk damage to your credit score.

Late payments cause cash flow problems and drain business resources too, in the form of working hours spent chasing them, having to negotiate late payments with their own suppliers, potentially incurring costs through, say, overdraft facilities or credit cards, and having to go, cap in hand, to the bank.

Overspending and failing to make timely repayment due to insufficient funds. Dependency on physical bills sometimes end up missing due dates due to postal delays. Waiting until the last day to make the most of the interest-free period resulting in a missed payment.

Which type of credit has grown the fastest? ›

Back in 2010, student loan debt outstanding in the United States surpassed outstanding credit card debt. Student loan debt hit the $1 trillion mark in 2013. It's still the fastest growing consumer debt and a lot of it isn't getting paid back.

$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt.

Keep it short and sweet. You might consider writing a goodwill letter if you missed one or more payments due to a medical emergency, a divorce, job loss, or a natural disaster. An issue with mail delivery due to a move could be another valid reason to write a goodwill letter.

“We haven't received your invoice”

Often, a client who is trying to delay payment will wait until payment is due before advising you that they didn't receive your invoice. Response: Send your client an email asking for confirmation of receipt of your invoice – for example, seven days after dispatch.

When explaining a delay in payment, honesty and transparency are key. Begin by acknowledging the missed deadline and express your commitment to resolving the situation. Clearly state the reason for the delay, whether it's a financial discrepancy, processing error, or unforeseen circ*mstances.