Can I do that? Yes you may!

Many people have cash flow issues, meaning the timing of their money coming in and their money going out, well, let's say doesn't match up exactly. To help, they would like to move the due date on their credit cards. Adjusting your due date to the timing of your personal cash flow is one thing you can do, and you should take advantage of it.

Let's say you get paid twice a month, which is the majority of folks. That means you get paid on the 15th and the last day of every month. Many people will pay their mortgage or rent, which is usually due at the beginning of the month, with their paycheck from the last day of the previous month and then pay their other bills with the check on the 15th.

The problem comes when your credit card due date is the 10th of the month, and you don't have enough left over from the check from the last day of the previous month, and clearly you'll be late if you wait to pay it out of the 15th's check. Most of the major issuers will allow you to make the change as long as you are in good standing, meaning no late payments.

Changing the date should not affect your credit score, but it could affect your interest charge if you move the due date to later in the month. For instance, if you move the due date to 15 days later, you'll owe 15 more days interest than the previous month. Next month, you'll be back on track for a 30-day interest charge. Keep in mind it may take more than one billing cycle for the change to take effect.

One thing to keep in mind is that it is never a good idea to move your due date if you're simply out of cash, aren't expecting any to come in, and you think it will give you some breathing room. If you don't have the money, you're simply kicking the can down the road. You need to seek help from someone who can create a spending plan for you.

Creating a spending plan will make sure you're spending your money properly and you have enough money when all your bills come due. Do you wish to continue to kick the can down the road, or do you want the peace of mind knowing you have sufficient funds to make all your payments?


CategoriesSaving Money