I am presently paying $200.00 a month on a credit card. My monthly minimum payment is $90.00. I am trying to pay down my debt as fast as possible. Would I save interest charges if I paid every two (2) weeks rather than monthly?
2006-09-27 13:31:01 · 11 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes, IF the company will credit the payment when you make it and not just hold it until the end of the month.
Interest is charged on most cards based on the average monthly balance, so making your balance lower during the monthly period will result in less interest. But call your card company first, and make sure they'll credit a payment whenever you make it -- some only will credit payments on billing cycles, meaning monthly.
2006-09-27 13:34:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Completely pay it off if you can! The interest rate on credit cards is phenomenal. Some are as much as 27% per annum. Most people don't realize this because it is in the very fine print. Also credit card companies don't want you to know either. If you are just making the minimum payment you are just paying the interest and not the principal.
What I would do if you are having trouble is go to a bank and get a loan to pay off all your credit cards. Then rip up your credit cards. The bank loan you will be paying far less interest than on the cards.
If you are having trouble paying off your cards and the card companies are hounding you at home and work to pay; what you need to do is call the credit counseling service. They will help straighten out your credit card debt.
I know because I had trouble when I was a teenager with credit cards.
Best advice is to pay it off as fast as you can cause the interest will kill you unless your a millionaire.
2006-09-27 13:49:16 · answer #2 · answered by tjinjapan 3 · 0⤊ 0⤋
Yes, you will pay down your balance faster if you pay money every two weeks, because your average balance will be lower for the billing period you are in. You may find that when you think about making a payment two times a month that it is easier to say no to those little purchases that really add up. I am personally trying to pay off a car loan ahead of schedule. My actual payment is due on the 1st of the month, but I make payments on the 1st and the 15th of the month, and I will include the payment itself plus whatever extra money I can squeeze out on that date. Considering the interest rate on your credit card could be up to four or five times what I am paying on my car, you will definitely notice a difference.
2006-09-27 16:49:42 · answer #3 · answered by Freddie 3 · 0⤊ 0⤋
I agree - you are thinking Very clearly here!
Check the agreement carefully... although you may be better off paying monthly - with LARGER payments...
2006-09-27 14:15:51 · answer #4 · answered by blktiger@pacbell.net 6 · 0⤊ 0⤋
Don't listen to all the experts here until you check your agreement. Many Card Issuers will not allow payments except to meet their prescribed schedule.
If it's allowed, then sure it would help.
2006-09-27 14:03:01 · answer #5 · answered by ? 3 · 0⤊ 0⤋
yes you would . if the card company will let you do this. if they do keep your records to hand in case they can't keep track of them.
that would be the only reason they will give for not duing as you wat to .it will cause them to much trouble to keep track off them. their computers are set up for monthly payments only.
the only way around this problem is to sent them extra money on your montly payments.
2006-09-27 13:43:38 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Absolutely, you can. Good for you. That is how we were able to buy a house. When you get a chance, check out this link.
2006-09-27 13:34:30 · answer #7 · answered by croc hunter fan 4 · 0⤊ 0⤋
Yes, you will save interest.
2006-09-27 14:22:02 · answer #8 · answered by green star 3 · 0⤊ 0⤋
Yes, that's an excellent idea!
2006-09-27 13:38:25 · answer #9 · answered by First Lady 7 · 0⤊ 0⤋
depending when you get paided.once a week.or every two weeks is all right.
2006-09-27 13:35:25 · answer #10 · answered by Princess Ona M 1 · 0⤊ 0⤋