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Sorry to pipe in a little late on this, but one thing that we do that always seems to encourage people paying on time is to offer two payment dates. The first payment date is slightly earlier, but you get a $25 discount on your dues. The second date is the regular dues amount. People who are late that aren't on payment plans immediately lose their privileges to participate in activities once the second date arrives. It ends up weeding out folks who may never pay. Deactivate them and move on. I never had to do that, but other groups have.
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