late fees

Late fees are charges imposed when a payment, such as a bill or loan installment, is not made by its due date. They serve as an incentive to pay on time and cover the additional administrative costs or inconvenience caused by the delay. The amount is usually specified in the agreement and can accumulate if payments are repeatedly late. Understanding late fees helps manage finances better and avoid unnecessary extra costs, emphasizing the importance of timely payments for maintaining good financial standing.