Late fees made things worse, not better, over 8 months

I added a 1.5% monthly late fee last January after too many 60 day waits. The first two months, two clients paid early to avoid it. Then things flipped. By April, the slow payers just stopped replying entirely and let the fees pile up. I had one guy owe $4,800 with $300 in fees, and he ghosted me for two months. Ended up waiving everything just to get a partial payment. The fee worked on people who already paid on time, and it pushed the problem clients further away. Has anyone else seen late charges backfire like this, or am I the only one who killed my own collection rate?

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