Late Payment Charge
When you take out a loan or credit, it is essential (unless you got a flexible loan which you can take advantage of) to meet your pre-agreed monthly payments. If you do not you will be subject to a late payment charge. The loan or credit company, are completely within their rights to apply the late charge as it will have been clearly laid out in the small print. The form the late payment charge takes can vary. It may be a pre-determined fixed fee, or it may be a percentage of the loan you have taken out. Whatever it is, the late payment charge is something to be avoided and, if you do not get quickly back into the swing of payments, the fact that you have defaulted will be entered on your credit record. This will have the effect of hurting you financially twice: first when you have to pay the late payment charge, and second when you next want a loan as a spotty credit record means you will have to pay a higher APR than previously.
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