Paying your credit card even one day late can result in substantial late fees, as well as an increase in the annual percentage rate (APR) for new charges. If you're only one day late, try calling your creditor to see if they will waive the fee as a courtesy. Although the CARD Act- which was signed into law in 2009- created some limitations on various credit card fees and interest rates, it's still possible to be charged a late fee that is higher than the minimum payment due.

Missing multiple payments can lead to an escalation of late fees and penalty APR, which could substantially increase the amount of debt owed by up to 25%. While it may seem impractical to charge people more when they're already having difficulty making a payment, this is unfortunately what can happen. The Consumer Financial Protection Bureau is currently undertaking an effort to look at credit card fees and seek public input, so it's important to weigh in and tell your story if you've been hurt by escalating late fees. You can learn more about how to provide comments here.

Late payments can severely hurt your credit since your repayment history makes up 35% of your credit score. If you default on one account, other creditors may take notice and increase your interest rate on existing loans and lines of credit, costing you more money. Some creditors may also reduce your credit limit or close your account altogether, which will cause further damage to your credit score, as it changes your credit utilization rate.

If you're having trouble remembering your bill due dates, make a recurring notation in your calendar, or use a financial application like Mint.com which provides reminders of bill payments. If you're not getting reminders from your creditor, check to ensure that you have opted into reminders. If you're having trouble paying your bills, reach out to your credit card company to let them know you're experiencing financial hardship and see if you can negotiate a lower monthly payment or interest rate. It's best to negotiate before you get behind, as it may be harder to do so after the fact.