Every year credit companies amass a huge amount of money from late payment fees. So many consumers damage or ruin their credit rating by missing payments or paying their credit card bill late. The fees pile up and the interest rates grow and before long even making the minimum payment becomes a struggle.

It may sound obvious but to ensure you don't fall into this trap you should always pay your bill on time and always do everything possible to avoid missing a payment. Sometimes, it can be hard to make your payments each month but prioritising your credit commitments is vital to your future creditworthiness.

Paying that bill

Make no mistake, if you are late paying or unable to pay you will be penalized. Even though you may have what you think is a valid reason for this non payment, your credit card company are unlikely to agree. Inside of your bill, you'll find detailed instructions regarding payment. You should always follow them as accurately as possible, pay where and when you are supposed to pay - and do it on time.

If you aren't able to pay your entire bill, which the majority of people aren't, you should instead pay the minimum amount possible. At any time in the future, when you have more money, you can always add to your minimum payment by making an additional payment.

One of the easiest ways to ensure you make your monthly repayment is to always have the minimum payment amount set aside, so that you have it once your credit card bill arrives. Once you have assured yourself that you won't be penalized or charged any late fees, you should look into paying a higher amount than just the minimum balance. By paying the minimum amount, you'll also ensure that no other fees will be added to your next credit card bill.

Payment breaks

Some credit companies now give consumers the option of a payment break. This means that providing you inform the credit company in advance, they will allow you to skip payment for that month. How many and how often you can select this option varies depending on the credit company. Always make sure you verify the terms with them. Make sure that you use this service wisely if you have it. You should always ensure that the situation is truly an emergency and there are no other options available for you before requesting a payment break. This service will normally have a cost as well, and you'll need to pay it the following month.

Reality Check

Although credit cards can be great for numerous reasons, you should always know your interest rates and have a good idea of what your bill is going to be before you make a purchase. Foolishly many people who have credit cards will make purchases, knowing they can't make the payments and then suffer when they get a bill they aren't able to pay.

When you own a credit card, be realistic and responsible. Always make sure that you have the money to pay the bill, or at least the minimum amount, each month. This way, you'll remain in good standing with your lenders and your credit score will continue to increase. If you simply aren't able to make your payment, you should contact your credit card issuer immediately and see what options are available. Remember, your credit card company are there to help and assist you if you need them. Don't avoid contacting them and hope things will magically get better. They are sure to only get worse.