The Hidden Cost of Missing Credit Card Payments

Outlook Money

Missing one or two credit card bills may seem like no big deal, but even without you noticing, your debt keeps piling up

Interest on Unpaid Balance

Unpaid balances continue to accrue interest on the principal in addition to any accrued interest. Many revolving credit lines and credit cards have high interest rates, which may pose a snowball effect on your debt. 

Late Fees Can Add Up Fast

One missed payment may trigger a late fee. If you miss more than one, fees increase month upon month, along with your total liability.

Hidden Charges

Other than regular late fees, the charges for foreclosure and processing silently increase the overall amount of your dues in arrears.

Debt Piles Up Fast

Overlooking dues makes your debt grow faster than expected. A Rs 50,000 credit card balance can easily spiral into Rs 60,000 or more with interest and fees.

Impact On Your Credit Score

Missed payments lower your credit score, which then affects loan approvals, interest rates, and even future credit card limits-restricting your financial flexibility.

Steps To Prevent Damage

Set reminders, auto-pay, or strategically pay dues. Even small steps prevent late fees, interest, and drop in credit scores.

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