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In a bid to slash what he calls “junk charges,” President Joe Biden introduced a number of initiatives this week<\/a> to fight charges that he sees as pricey and unfair to shoppers. This contains working to restrict late charges on bank card funds and is along with remarks he made on curbing overdraft charges<\/a> again in October.<\/p>\n This comes after the creation of the White House Competition Council in 2021, tasked with discovering unfairly excessive or shock charges that customers should pay for fundamental providers \u2014 one thing the president believes authorities businesses ought to defend shoppers in opposition to. The authorities estimates that these initiatives might save American households $12 billion yearly, assuming these initiatives are applied as legal guidelines.<\/p>\n But what are these charges? And is there a method to keep away from them altogether?<\/p>\n Here’s a better have a look at late charges, overdraft charges and how one can keep away from paying them.<\/p>\n Related: President Biden focusing on charges in large client push on journey and bank cards<\/a><\/strong><\/p>\n Late charges are charges that you just pay when you do not make your minimal bank card cost<\/a> on time. When is the cutoff time earlier than you are late? That varies by financial institution.<\/p>\n Some bank card issuers require you to pay by 5 p.m. Eastern time (the tip of their enterprise day). Others can help you pay till midnight on the due date. Thus, it is vital to know your bank card issuer’s coverage. Paying after this time can result in charges as excessive as $41 for every late cost.<\/p>\n However, when you make your minimal cost by the cutoff time, you will not pay a late payment. Remember that making solely the minimal cost will result in curiosity in your bank card invoice.<\/p>\n Related: The finest method to pay your bank card payments<\/a><\/strong><\/p>\nWhat are late charges?<\/h2>\n