Late fees can be defined as accruing monetary penalties, which are placed against the responsible party. In other words, when you pay late fees, you are using your money as collateral to keep your loan.
There are many possible situations where you might face these fees. Late fees are assessed when movie rentals are late, as well as when books are rented from the library and aren't returned on time. These types of late fees typically charge per item, per day. The reason for this is to try to cause the borrowing party to return the items faster since.
On the other spectrum, there are also late fees assigned to past due payments owed to creditors. Possible creditors that people owe repayments to include automobile loans, mortgages loans, student loans, credit cards, etc. These types of late fees typically charge per month and have a higher fee than do rental fees, as the monthly payments are much higher than rentals are.
Yet another scenario where late fees are charged is on a more personal level. If you are late on making payments to landlords, utility companies, or exceed the funds in your bank account, late fees are also applied to these accounts. To some people this scenario might be the worst. Because if and when people are making late payments on these accounts, it usually means that they don’t even have the funds to pay the bills, let alone additional fees for being late.
Of course life would be much easier on everyone if late fees were nonexistent, but since they’re not, we are all stuck in the same game making the same late fee payments.
