2007-07-14 02:18:25 · 15 answers · asked by Marilyn H 1 in Business & Finance ➔ Credit
the 32nd of each month
2007-07-14 02:23:24 · answer #1 · answered by bobthebrowser 6 · 1⤊ 1⤋
As close to the due date as you can make it, but still in time.
Why?
Because in the meantime, you have the "use" of your money, which, if invested, will be earning interest for you. Making your loan payment early will not reduce the amount of the payment or the interest on the loan -in other words, there is no benefit financially. On the other hand, keeping your money invested DOES pay you for as long as you have it invested.
Exception: if the investment is in stocks -and you're paid a dividend- you must be invested when the stock goes "ex dividend" -that is, they day on which you MUST own it to be paid the dividend. Therefore, on the assumption that you pay loans monthly, you would want to keep cash in something that computes interest on a daily basis (even if it is only PAID OUT monthly). So, if you had money in for 20 days, you'd get 20 days of interest. Some checking accounts, money markets and mutual funds are good places.
All of this assumes you have the discipline to make it work; those who do not have the discipline will often spend money on something else and then have to really scramble to make their loan payments. For them, making payments as soon as possible -while they have money in hand, is the only option. Of course, they lose out on the interest they COULD have made.
2007-07-14 09:31:27 · answer #2 · answered by JSGeare 6 · 0⤊ 0⤋
That would be decided depending on the other payments that you have to make and when is there space in your monthly budget for this loan payment. I suggest that you sit down and make a budget telling you when everything is due, when you get paid, and decide from there when you should make this payment. If the due date currently is not good for you, most places will allow you to change your due date up to 30 days. So for instance if your debt is currently due on the 1st and you need to change it to the 25th you could do this. First figure out what is best for you then call them and see if this is an option if need be.
2007-07-17 15:58:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Good Question....
it depends on the loan.
If the loan credits principle payment when paid, then the interest on the principle paid stops the day it is credited, as in a revolving loan. Credit cards, equity lines of credit, etc.
For interest in advance loans you pay the interest for the month up front. If you pay the principle the next day there is not decrease in that interest for the month. Most contract loans work this way, mortgages, auto, etc.
2007-07-14 10:33:23 · answer #4 · answered by Bill R 7 · 0⤊ 0⤋
my husband has a LOT of debt. After going almost a year with making a payment at the beginning of the month and cutting our heads off for the rest of the month, me started to make payments AS SOON as he got paid. That way we don't cut ourselves short. Every paycheck is used to pay one bill (or two smalled ones), and we put down as much as we can so that if for some reason we can't pay it one month, we'll be atleast one payment ahead and won't have to worry about it.
2007-07-14 09:25:29 · answer #5 · answered by christina.yost 3 · 0⤊ 0⤋
The first day of the month. And as soon after that as possible for the next payment!!
2007-07-14 09:25:45 · answer #6 · answered by Lee T 2 · 0⤊ 0⤋
If you can swing it, as early as possible, even before your due date, if it is a simple interest loan......you will be paying the interest earlier, leaving more to go to principle, reducing the amount of interest you pay over the life of the loan....sounds dorky, but it will save you money in the long run.
2007-07-14 09:43:54 · answer #7 · answered by Cara D 2 · 0⤊ 0⤋
I would say usually between the 10th and 20th. This gives the company enough time to post the payment and since most companies report to the bureau around the 1rst of each month your debt ratio will remain lower.
2007-07-14 11:31:34 · answer #8 · answered by JT 2 · 0⤊ 0⤋
If you are afraid you will miss the due date, pay it early enough so you don't miss it. The additional interest penalty can be severe.
But if you are confident you can pay without missing the due date, then hold off as long as possible so that you are holding on to your money rather than the bank.
2007-07-14 09:27:30 · answer #9 · answered by fcas80 7 · 0⤊ 0⤋
I really can't believe that Marilyn does not know how to pay a bill??? Lovie you pay it before the due date. Allow 10 days for mail delivery.
2007-07-14 09:28:09 · answer #10 · answered by Gerald 6 · 2⤊ 0⤋
whenever they tell you they need it. it depends on your loan. there is no "best" day to give money away.
2007-07-14 09:26:09 · answer #11 · answered by Anonymous · 0⤊ 0⤋