September 24, 2013 at 9:05 am
Hi, I was going back through some postings and -G- talked about making more than one payment a month on your cc.
It sounds great but I want to make sure I understand this.
Lets say your required payment is $200 a month and you divide that by 4 weeks and pay $50.00 per week to equal that $200, do each of those $50.00 payments after they equal your $200 due satisfy the cc company as making your payment that month? I’m not sure if I’m explaining that correctly, I hope you understand what I’m trying to ask.
I guess what I’m saying is that as long as the cc company gets a total of the amount due ($200) it doesn’t matter if it’s all in one payment or spread out weekly as long as that total of $200 due is made by the due date? Thanks for helping me understand.
September 24, 2013 at 9:06 am
What *I* try to do every month is: *Pay their minimum on or before the due date, THEN, *Pay another payment (Usually I try for the FINANCE CHARGE or more) out of the following paycheck.
I just scheduled the payment for GEOnline for $100.00 on the 25th…
they are due $82.00 on the 5th of the month…
and then on the 7th (next payday) I’ll tack on another $60-80.00.
This means I am paying just over double their minimum payment and keeping the balance going down much faster than the usual $82.00 a month.
Penny’s, balance $603, $50.00 on the 25th.
They want $15.00 minimum, Then on the seventh, another $50.00 Signature closed end loan, $190.00 on the 5th, firm.
Then in the next payday, I usually send another $25-50.00.
Same with Target VISA and another smaller loan, which will be gone the end of March.
It does mean less money for me and my pocket, but these payments over the minimums do make a big difference.
It’s different from most of those I hear on the Wallet Doctor and other talk shows about debt, I don’t have a big income like some “Oh, we bring in about $60,000.00 -or more- a month…”.
From my part time job, I made $15,110.00 this last year, and get about $2,700.00 a year from SSI.
Thanks to my parents, I have a paid off house, and only have utilities, property tax and insurance to HAVE to pay for.
So, my groceries and all these household goo gahs get done first.
Then the minimums.
If my hours go down again, or I get more, that dictates most of the ‘extras’ I pay to my debt.
There have been a couple of months I could only pay $20.00 more, but hey…
that is something extra I see what you’re saying, but I would rather just meet their minimum, and if something happens to my check or hours, I’m not hung out to dry.
September 24, 2013 at 9:07 am
Thanks for the information.
I usually pay online and I thought I could break the minimum due into 4 payments adding extra when I can and save on the daily interest they charge as long as by the due date I met the monthly minimum due.
I guess that won’t work.
It just seems with the way we get paid it would be easier to break it into more than 1 payment instead of having to come up with it all at once.
Does anyone know, does the minimum payment for the month have to be all in one payment or can it be broken down? By paying online I know it gets there on time.
September 24, 2013 at 9:08 am
The total payment of $200 is in by the due date, you are fine.
September 24, 2013 at 9:09 am
I do this with Capital One.
As long as the payments add up to the minimum, they are happy.
I make an extra payment when it’s a five week month, so the balance drops a little faster.
It does make a difference on the interest.
Barbara Life’s journey is not to arrive at the grave safely in a well-preserved body, but rather to skid in sideways, totally worn out, shouting “….what a ride!”
September 24, 2013 at 9:11 am
Thomas & Tracy Harris I guess what I’m saying is that as long as the cc company gets a total of the amount due ($200) it doesn’t matter if it’s all in one payment or spread out weekly as long as that total of $200 due is made by the due date?
September 24, 2013 at 9:13 am
One of the things that help a lot, I have found is that when you are making a payment is to pay this way – Add the minimum payment + finance charges + $15 and mail it in.
That way, we are never paying just the minimum.
I am working on being one of those people who can pay a bill the day it arrives in the mail.
We are not there yet, but we are working towards that.
I think that if we can manage to make a payment towards some of the debt from every paycheck, it will help.
It does not always happen, but we are new at this.
Last year, we actually started putting words into action.
It feels good.
Another thing that we do, is make a list of things that we want/need and then, we keep an eye out for them.
For instance, hubby needs some new jeans.
So, I keep his sizes in my purse.
When I am out and I find them on sale, I pick them up for him.
Since we have been slowly putting money away towards these items, we are able to pay cash for them and get them on sale.
BONUS! So, we get the items and we don’t incur any additional debts.
September 24, 2013 at 9:13 am
You can mail a payment every week to your credit card OR pay it online and it will lower your average daily balance.
If you make 20 little payments a month, your debt will go down much quicker than if you paid just the one large payment.
Trust me, the credit card company is not going to send the additional payments back.
September 24, 2013 at 9:15 am
Whenever you make a charge purchase, make yourself send a payment for that amount to the credit card + $5 on your next payday.
You will pay a lot less interest on your credit card that way.
Otherwise, try to pay the bill off in full by the end of the month.
If you save up your spare change daily, once a week or every two weeks, take it to a bank, get all of the change added up and put it into a cashier’s check.
Send that money to whichever debt is next on your list to pay.
It all adds up.
The less interest you pay, the better for you overall.
This is also a good way to boost your savings, emergency fund or otherwise, since nobody seems to realize how quickly their spare change adds up.
September 24, 2013 at 9:16 am
As long as you get the minimum or above covered you are fine.
I am not sure if you can apply the same techniques to car or mortgage loans..
but with those you can always take any extra you should have available and still make the payments weekly, just may have to make the full paymnet as scheduled.
In the end you get teh same results..
every payed off way earlier then you would have before.
I will send an update shortly after the 4th of next month this will be month 2 of paying htis way and hoping to inprove on what I gained last month.
September 24, 2013 at 9:16 am
Thanks to everyone who replied with great answers and advice to my post.
I appreciate it! I am going to try doing this.
Take Years Off Your Mortgage in 2023
For years we treated our homes like cash machines, borrowing against their rising