Late fees are a rip-off!

When credit cards charge you a late fee or penalty, this is nothing more or less than a way for them to rip off their customers.

You don't necessarily have to pay that fee. If you've got a good payment record, you can often call and get it waived. You can't do it too often, but I've done it several times in a year. (I run a lot of purchases through my credit accounts.)

Sometimes you don't have to do more than ask. If they resist, you can ask to talk to a supervisor — or their "account retention department."

It costs the company at least $45 to gain a new account. Keeping your business is worthwhile to them.

You might have to threaten to close your account — but be prepared to back it up.

I don't carry balances, but if you do, you're worth even more to them. They not only collect the fee off each purchase (about 3%) but also a fat interest charge for every month. This alone is rather outrageous, since the Fed is lending out money for almost zero interest.

Later: Why you should have only two credit cards, make the card companies' dreaded "churn rate" work for you, and how to get some of that purchase discount back in your pocket.

Also: The credit card that never gets paid off, the danger of home equity lines, and deferred gratification.