How to Overcome Financial Disorganization
A Clean Financial Closet
Disorganization dramatically increases the chances of getting hit with a penalty fee such as late fees ($26-$39), over-limit fees (~$29), or emergency phone payments ($5-$15). These add up quickly. In 2009, these fees amounted to approximately $19 billion.
The fastest way to blow lots of money on nothing isn’t in Vegas. It’s missing a debt payment. One missed payment can make your APR jump from 15% to nearly 30%.
Missing a few payments can drop your score by as much as 50 points, since 35% of your credit score is determined by how consistently you make your payments. A 50-point difference in a credit score can add 0.6% to you mortgage rate, resulting in $40K more in interest over the life of a $300K mortgage.