Bi-Monthly Credit Card Payments
Author: CreditFanatic
Posted: Tue Mar 28, 2006 1:58 am
Post subject: Bi-Monthly Payments Instead of One Each Month.
http://www.cardratings.com/creditcardnews/2006/02/bi-weekly-credit-card-payments-can.html
So, I read an article above from this site about making a payment every two weeks instead of waiting til the end of each month to make a payment. This is supposed to help alleviate the debt over a shorter period of time. I was wondering if anyone actually tried it and if so, was it successful? I would like to offer general advice to someone, but I've never heard it done by anyone.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Ira
Posted: Tue Mar 28, 2006 2:10 am
Post subject:
If it helps you stay out of debt it's a great idea. As far as I'm concerned it's too much trouble, but that's entirely a personal thing. My attitude is why pay $200.00 twice a month when you could just as easily save half the work by paying $200.00 once a month. As far as the card issuer is concerned, they don't care if you make a payment every day. Their computers can handle it.
Author: nunya
Posted: Tue Mar 28, 2006 2:17 am
Post subject: Bi-Monthly Credit Card Payments
I do this for my cards for a couple of reasons. The first reason is because I am self-employed and get paid several times a week or month, depends on my work. The second reason, which is what you're seeking advice about, concerns the interest rate charged on any given card. You have to first understand that the interest rates on cards are compounded on a DAILY basis so when you make the first payment before the statement period for that month you are lowering the average daily balance for that month and the interest is thus lowered. For example, let's say you owe $500 and you wait 30 days between statement periods to pay on your balance. if you were going to pay $100 on the card balance but wait until the full 30 days (until the due date) then you will be paying interest on $500. If instead, you pay $50 on the 15th day of the period then you will be paying the interest on $500 for only half the period and then interest for $450 for the other half of the period when you pay the $50 second payment....over time this really saves you money if you carry balances on cards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: CreditFanatic
Posted: Tue Mar 28, 2006 3:06 am
Post subject: online
Well, I actually pay everything online. And I tried once to pay before the due date and it prompted that it will apply to the previous bill (BoA). So, I don't know if it will credit the card to a negative or what.
What brings up another question for me. If you pay more than what you owe on a card, do you credit it to you and apply it to the next bill? Never risked trying it. Thanks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Mar 28, 2006 1:58 am
Post subject: Bi-Monthly Payments Instead of One Each Month.
http://www.cardratings.com/creditcardnews/2006/02/bi-weekly-credit-card-payments-can.html
So, I read an article above from this site about making a payment every two weeks instead of waiting til the end of each month to make a payment. This is supposed to help alleviate the debt over a shorter period of time. I was wondering if anyone actually tried it and if so, was it successful? I would like to offer general advice to someone, but I've never heard it done by anyone.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Ira
Posted: Tue Mar 28, 2006 2:10 am
Post subject:
If it helps you stay out of debt it's a great idea. As far as I'm concerned it's too much trouble, but that's entirely a personal thing. My attitude is why pay $200.00 twice a month when you could just as easily save half the work by paying $200.00 once a month. As far as the card issuer is concerned, they don't care if you make a payment every day. Their computers can handle it.
Author: nunya
Posted: Tue Mar 28, 2006 2:17 am
Post subject: Bi-Monthly Credit Card Payments
I do this for my cards for a couple of reasons. The first reason is because I am self-employed and get paid several times a week or month, depends on my work. The second reason, which is what you're seeking advice about, concerns the interest rate charged on any given card. You have to first understand that the interest rates on cards are compounded on a DAILY basis so when you make the first payment before the statement period for that month you are lowering the average daily balance for that month and the interest is thus lowered. For example, let's say you owe $500 and you wait 30 days between statement periods to pay on your balance. if you were going to pay $100 on the card balance but wait until the full 30 days (until the due date) then you will be paying interest on $500. If instead, you pay $50 on the 15th day of the period then you will be paying the interest on $500 for only half the period and then interest for $450 for the other half of the period when you pay the $50 second payment....over time this really saves you money if you carry balances on cards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: CreditFanatic
Posted: Tue Mar 28, 2006 3:06 am
Post subject: online
Well, I actually pay everything online. And I tried once to pay before the due date and it prompted that it will apply to the previous bill (BoA). So, I don't know if it will credit the card to a negative or what.
What brings up another question for me. If you pay more than what you owe on a card, do you credit it to you and apply it to the next bill? Never risked trying it. Thanks.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:26 AM
0 Comments:
Post a Comment
<< Home