It can be costly to ignore your finances. If you don’t check your bank account and credit card statements every month, you may miss bank mistakes or fraudulent transactions that can really cost you. We're all at risk of identity theft, and if it goes undetected, your credit and finances could suffer for years to come.
While ignoring your finances is never a good idea, not paying bills on time can also cost you. You may incur penalties and risk the chance of having services disconnected. Reconnection fees, late fees, and other charges can make a small bill mushroom into a much larger one.
When you're late making a credit card payment, you'll likely be charged a minimum $25 late fee. Worse, if you fail to pay before the next month’s bill is due, you can have a late payment on your credit reports. This can cost you an exorbitant amount in additional interest and may adversely affect your credit score.
Have a car? If you don’t pay your license and registration fees on time, there will be a stiff penalty and you could get an expensive ticket. What about a cell phone, cable, or internet services? If you terminate your contract early, you may incur an early termination fee, which is just as bad as a late payment penalty.
Even small things, like failing to return a book to the library can end up costing you more than if you had just purchased it in the first place.
These are only some of the ways procrastination and fear can be costly.
In Part 3, we'll talk about ways to overcome your procrastination and fear of your finances!