Bi-weekly CC payments?

mms · #1 (**permalink**) 10-06-2005, 07:17 AM

I know a lot of home mortgages allow this strategy to facilitate early pay-off, but I've never heard of its being used to pay off CC's? Anyone here have any info on this?
Thanks!!

34saving · #2 (**permalink**) 10-06-2005, 07:44 AM

Basically, I'm not sure about any of this, but here's my guess:
My credit card lets me make a payment every 8 days if I want to (online). If I had an outstanding balance, I would be change interest on the average daily balance. If I made more payments my average daily balance would go down and I'd be charged less interest. So, I think if I had an outstanding balance and I made payments every two weeks (online) I'd be saving money . . .

genchan · #3 (**permalink**) 10-06-2005, 08:18 AM

Quote:

Originally Posted by mms

I know a lot of home mortgages allow this strategy to facilitate early pay-off, but I've never heard of its being used to pay off CC's? Anyone here have any info on this?
Thanks!!

Technically, but it is not different than paying more than the minimum once a month. Works out the same.

mms · #4 (**permalink**) 10-06-2005, 08:32 AM

I did a quick Google search and came up with a couple of links like this:

http://www.simpleliving.net/ymoyl/gh-faq-step8.asp

I need to get more info, of course, but the fact that you never hear about it as a strategy-especially with all of the debt consolidation going on, makes me think that it's probably no better than making minimum payments.

terry1156 · #5 (**permalink**) 10-06-2005, 08:48 AM

That article is extremely deceiving - it makes it seem like just paying half the amount in 2 installments creates the savings which isn't true. The thing that makes bi-weeklies work is making an extra payment a year. Monthly = 12 payments a year. bi weekly = 13 payments a year It's the extra payment that makes the difference, not paying 2 times a month like that article implies.

cicy33 · #6 (**permalink**) 10-06-2005, 09:11 AM

Of course if you could pay a little more twice a month you would see the savings as well. for ex, min is $20. you pay $15 every two weeks. payment: $30

sweeps · #7 (**permalink**) 10-06-2005, 11:16 AM

Be especially wary when lenders want to charge you for this bi-weekly payment "privilege". I've received letters from my mortgage company offering to charge me "only" $300 to set up a bi-weekly payment plan. LOL. If I want to send in additional payments, I can do it for free, thank you very much.

cicy33 · #8 (**permalink**) 10-06-2005, 11:40 AM

Quote:

Originally Posted by Sweepsplayer

Be especially wary when lenders want to charge you for this bi-weekly payment "privilege". I've received letters from my mortgage company offering to charge me "only" $300 to set up a bi-weekly payment plan. LOL. If I want to send in additional payments, I can do it for free, thank you very much.

Here is the one I love. For ONLY 4.95 pay your bill online and SAVE!

Exactly how did I save? Thanks but I will fork out the .37 for a stamp and send it in myself. I absolutely refuse to pay to send in a payment. I think that I should get a deduction for doing it that way!