Credit card late fees are rising, due to inflation

If you do not pay off your credit card balance in full every month, be advised that late fees are on the rise. While these fees are capped, the maximum credit-card late fee allowed gets increased in lockstep with rising costs in the world. Unfortunately, most paychecks don’t also get an automatic bump due to inflation.

Late fees up to $30 for the first missed payment can be charged without the lender doing a lot of extra work; that’s called the “safe harbor,” and it’s indexed to inflation. That means the most that can be charged each month without getting extra scrutiny is going to rise, unless new rules as passed to cap it.

These fees can have a huge impact on anyone with a lower income, or with large amounts of debt. Fortunately, credit-card debt is unsecured, which means that it can be wiped away in a chapter 7 bankruptcy. To learn more about freeing yourself from credit card bills, wage garnishments, and calls from collectors through bankruptcy protection, call Selby Legal and ask for a free consultation about bankruptcy.