Due Date

A due date is a specified date in which payment for a debt or service has to be made.

The payment has to be made before or on the stated due date. Failing which can mean incurring a late payment fee.

All types of credit facilities and loan products have due dates which are part of the debt obligations.

Failing to make the required payment for 30 days or more after due date would result in delinquency. This wouldn’t be the case if it’s only 5 days past due.

Common bills such as utility bills and phone bills would also consist of due dates which indicates when any outstanding charges has to be made.

Due dates for common credit and loan facilities

Loan products that borrowers voluntarily sign up for usually come with fixed monthly due dates.

This might be stipulated like:

  • Every first day of the month
  • Every fifth day of the month
  • Every last day of the month
  • etc

Any requests made by borrowers to change the due dates are usually met with fierce resistance on the part of the lenders.

This is because term loans like personal loans are structured to disburse a lump sum amount of funds to the borrower, and interest on the facility are carefully calculated to account for the tenure, resulting in the determination of the recurring monthly installment payments that the borrower would be required to make.

Changing due dates can potentially change the whole repayment schedule that was originally agreed upon by both parties.

And on the odd occurrence that a lender is willing to take on the tedious task of changing due dates, the borrower might be required to make interest payments on a pro-rated basis so that the main terms of the loan can be retained.

For example, if the original due date is the 5th of the calendar month and the borrower wants to change the date to the 20th, there would be a 21 day gap of additional interest charges that the borrower would incur.

Banks seldom allow borrowers to get a free lunch no matter how small the amount might be.

Changing due dates for credit card bills indicated on statements can be an easier request to get approved.

This is because credit cards don’t come with a repayment term that last for years. Cardholders basically pay for whatever they use the card for during the month.

So if a cardholder has no outstanding amount due on the balance, or pays off any balance, then the card issuer can be more receptive to changing the due dates of a particular account.

Some banks who are all-in on the digital revolution even allow people to change their own due dates simply with a few click after logging into their online portals.

However, do take note that when there is an effective due date change, the cardholder might observe some weird numbers for the first month or two following the change due to finance charges.

It should also be noted that due dates usually come with a minimum payment sum attached. Failing to pay this amount would result in a late payment charge as well.

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