paying bills late need payday advance

How Paying Bills Late Can Ruin Your Finances

You may have forgotten you had a payment due or simply didn’t have funds left at the end of the month. What happens now?

It’s important to know how paying bills late can ruin your finances. You could be charged excessive late fees, see your interest rate increase, or notice a drop in your credit score. This article will cover the details of what happens in this scenario and how to avoid it, plus how a payday advance may be able to help.

Here's How Paying Your Bills Late Can Ruin Your Personal Finances

1. You May Be Charged A Fee.

Usually, if a bill isn’t paid on time, a late fee is charged to the account. Depending on the bill, late fees can be anywhere from $25 to $100.

If you were already in a financial bind and couldn’t afford to pay the bill on time, this late fee will put you deeper into the hole. In some cases, late fees can be accrued every day or every week that goes by without the bill being paid in full, although, most late fees are charged monthly.

2. Your Interest Rate Could Increase.

Many bills accrue interest on unpaid balances, such as with credit cards. If you don’t pay a bill on time, the interest rate could increase, meaning you will pay more over time.

Just a one percent increase on your annual APR could mean hundreds of dollars more in interest over time, so it’s best to keep the interest rate as low as possible.

3. Your Credit Score May Decrease.

If you miss a bill but pay it back in less than 30 days, it's likely your credit score won’t be affected. But once you pass the 30-day mark of an unpaid bill, your credit score could potentially see a drop of up to 100 points. The points will continue to drop if the bill isn’t paid in 60 days, then 90 days, and so on.

Once you consistently pay your bills on time, your credit score will increase; however, everything that affects your credit score will be seen by credit agencies for seven years to come. This can make it hard to get a house, car, or new credit card if your score drops too low.

paying bills late ruin finances

How To Avoid Paying Bills Late

To avoid paying bills late, consider these tips.

First, some bills – such as credit cards – allow you to pick your payment due date. Try to schedule these dates for when you get paid or stagger them throughout the month if that is easier for you. You can also set up auto payments that could be charged at the same time you get paid.

If your issue is forgetfulness, set up text alerts, write due dates on a calendar, or set up phone alarms. With more expensive bills, it may help to pay a portion weekly throughout the month so it’s not such a shock at the end of the month, making it more manageable.

If the issue is that you are in a financial bind and simply don’t have the money to afford impending bills, the answer for you could be a payday advance.       

Paying Your Bills With A Payday Loan

Payday loans range from $100 to $500. They are quick and easy to get, don’t require good credit, and could help save your finances if you keep paying bills late.

In general, a payday loan can be used as a quick fix and can be easily paid back once you receive your next paycheck.

At Utah Title Loans, Inc. the process usually takes about 30 minutes and you could have money on the same day or the next working day.

man counting payday advance

How To Apply

To apply, simply fill out the online form found on our website. Our loan representative will give you a call to schedule a time for you to visit the nearest location.

The loan representative will then check your documents and help you fill out some simple paperwork in-person. They will also answer any questions you have and walk you through each step of the approval process.

If approved for the payday loan, you can receive the money as soon as that same day.

Pay Your Bills Off Today!

Paying bills late can ruin your finances in many ways. You can receive a late fee, spike your interest rates, and lose precious points on your credit score, worsening your financial burden.

To avoid this and help you get out of a financial bind, apply for a payday advance today by easily filling out the online form on our homepage. We’re looking forward to speaking with you!    


Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Mason Roberts

Mason Roberts is a seasoned economics writer and blogger with a knack for breaking down and simply communicating the ever-changing world of finance. He is philosophically committed to the premise that financial knowledge equals financial freedom.