Is it ok to...

timetosave · #1 (**permalink**) 08-17-2006, 10:51 AM

Is it ok to pay a bill in two installments, if I have a 500 car payment can I send the company 250.00 each payday as long as the second one arrives on time?

G

PrincessPerky · #2 (**permalink**) 08-17-2006, 01:38 PM

err check with them, the first might go in as not enough, and the second may not count..if you are having trouble not haivng the money, take it out of your accounting, but not send it (assuming you will have the rest in time)

DivaJen · #3 (**permalink**) 08-17-2006, 09:17 PM

I agree with PP - write the first check, stick it in the envelope, then write the second check and mail it off when it's due. Earn a little interest on your money instead of mailing them half of what you owe early each time.

timetosave · #4 (**permalink**) 08-19-2006, 07:41 AM

Thanks, while trying to come up with a workable budget I think if I cut my payment in half it would be easier to get other things done on time...I will do the two check method.

thanks

dragonfly · #5 (**permalink**) 09-06-2006, 05:47 AM

Quote:

Originally Posted by timetosave

Is it ok to pay a bill in two installments, if I have a 500 car payment can I send the company 250.00 each payday as long as the second one arrives on time?

G

yes u can.. but if only company allows u?

Great to be Debt Free · #6 (**permalink**) 09-06-2006, 08:51 AM

My company actually has an option for this. There's no additional fee for it, either. My previous company allowed it, but charged an extra $5.

seanof30306 · #7 (**permalink**) 09-02-2007, 10:34 PM

While it may not be feasable on a car payment, it is a great idea to do it on credit cards; especially if your card calculates interest daily.

i work in a cash business, so, I take my pay home every day. When I have a credit card balance, I make a payment every week.

Over time, this saves you a lot on interest over making a single monthly payment. It also means you'll never have a brain you-know-what and be late on a payment. Those 39.00 late payment charges really suck.

I use online bill pay, so there's no postage, and it's super easy to do.

Exile · #8 (**permalink**) 09-03-2007, 01:04 AM

As a former collector at an auto finance center, I would say that unless you are paying in advance or your contract stipulates other than monthly installments (such as bi-weekly), you must make the full payment in one lump amount. If you include two checks, each for half of an installment and for some reason they don't get posted the same day, you may get dinged for additional daily interest.

seanof30306 · #9 (**permalink**) 09-03-2007, 01:37 AM

Quote:

Originally Posted by Exile

As a former collector at an auto finance center, I would say that unless you are paying in advance or your contract stipulates other than monthly installments (such as bi-weekly), you must make the full payment in one lump amount. If you include two checks, each for half of an installment and for some reason they don't get posted the same day, you may get dinged for additional daily interest.

If that's the case, then why not just budget half the payment from each of the twice-monthly checks? Park the money in your savings account and make a single payment once a month.

Use a tax refund or some other financial windfall to get two weeks ahead. For example, let's say you get paid on the first and the fifteenth, and your car payment is due on the sixth. Instead of making the payment when you get paid on the first and hoping it processes by the sixth , get to the point where you're making it two weeks earlier, on the fiftenth. That way, if the check gets "lost in the mail", etc. you have time to work it out before the due date.

Also, I can't tell you how much easier paying my bills, and, more importantly, paying them on time has become since I began banking online and using online bill pay. Virtually every bank offers it for free, and it makes things go so much easier.

Also, many companies will email you payment confirmations, if you request them. That way, you know your payment has gone through.

fam5d07 · #10 (**permalink**) 10-24-2007, 05:37 AM

Quote:

Originally Posted by seanof30306

If that's the case, then why not just budget half the payment from each of the twice-monthly checks? Park the money in your savings account and make a single payment once a month.

We do this with our house payment I take from both paychecks and put half in our savings, then when its time to pay I pay online from that savings acount, no postage or envelopes or checks needed.