Page 65 - Benjamin Franklin\'s The Way to Wealth: A 52 brilliant ideas interpretation - PDFDrive.com

28 D-DAY

Once upon a time you probably thought the worst date you could
forget was your anniversary. That would have been before you missed
that repayment date. As Franklin said: ‘creditors are a superstitious sect,
great observers of set days and times.’ It pays to stay on the right side of
those superstitions.

Forget your anniversary and you’re in for an orgy of flouncing, slammed
doors, industrial-strength sulking and whiny tears. That’s presuming your
partner is a man. You think that’s bad? Try forgetting a bank payment.

DEFINING IDEA…
If you make a couple of late payments on a new card with an
introductory rate,…your annual percentage rate could jump as much
as fifteen percentage points.
~ KEN MCELDOWNEY, CONSUMER EXPERT

You may have read that the charges imposed for late payments in the UK
have been lowered to a flat fee of £12 by the Office of Fair Trading after a
nationwide campaign against unfair and potentially illegal fees being charged
by lenders. Excellent news.

You might even be tempted to think that the new £12 is so reasonable that
it’s almost worth it to run a little late when things get tight come repayment
time. Think again.

Every late payment will be noted on your credit record and will be seen as
an indication that you are struggling with your existing level of debt.

That will mean a reassessment of your creditworthiness, so it can also affect
your APR and monthly minimum repayment sums. You almost certainly
didn’t read all the small print when signing up for that shiny new card or
balance transfer but most likely the agreement you signed included the right
of the lender to assess and adjust both interest rates and monthly minimums
as you go, depending on your financial behaviour.