Page 66 - Benjamin Franklin\'s The Way to Wealth: A 52 brilliant ideas interpretation - PDFDrive.com

On the same basis a card issuer may decide to reduce your current credit
limit on the grounds that it is already beyond you. In extreme cases they
could recall the debt altogether—and you simply can’t afford to pay off that
debt in one go. (If you can, then what are you doing making those late
payments?)

That then has the knock-on effect that your chances of future borrowing
will be reduced. Which could really hurt when you try to get a mortgage
(or a remortgage if things are getting really tough). This, of course, means
that your ‘cheap’ fee could be one of the most expensive financial choices
you ever opt for.

So don’t miss your payments, wherever you are, and don’t try to bury your
head in the sand. If you realise that the money just won’t be there to pay
that direct debit then get in touch with your lenders immediately. If you are
seen to be acting responsibly there should be no problem working out a
new schedule of repayments, and possibly a repayment ‘holiday’ during
which you take a break from those regular payments until your financial
situation improves.

HERE’S AN IDEA FOR YOU…
Go a step further than direct debits to sort out your regular outgoings.
Open an instant-access savings account with the amount needed to
cover one month’s repayments. That’s both your buffer and your alarm.
The month you transfer the buffer to pay them is the signal to talk to
your lender.