ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Paying the minimum amount due will avoid late fees. It also avoids other penalties, such as raised interest rates or annual percentage rates. However, paying only the minimum amount due can lead to other expenses, such as interest on your credit card balance.

Detailed explanation-2: -When explaining to your customers that they’re being charged late fees, be as clear and informative as possible. You may feel weird about telling a client they’ve incurred extra charges, but it’s your right as a service provider to enforce your policy and collect what’s owed.

Detailed explanation-3: -Send a late payment letter notifying the customer that their payment is overdue. In your late payment letter, explain when the due date was. List the overdue invoice charges and their new liability. Explain whether their late payment fee will increase if they do not pay within a certain number of days.

Detailed explanation-4: -When a borrower misses a payment, the lender adds the late fee to the outstanding balance, which increases the following month. Late fees encourage consumers to pay on time and are outlined in the contract or agreement. Borrowers must be notified about any changes to late fees in advance in writing by the lender.