Make Payment Every 14 Days

**rudypoo98** · 02-15-2009, 10:34 AM

I saw Clark Howard on CNN ,he said to knock down interest on credit cards to make half of your payment every 14 days.I know this would work because my sister paid a house off faster this way.Instead of splitting the payment in half like he said she made a full one when due then 14 days later she paid $50.He said on credit cards if can only make the minimum payment and by splitting it saves 1/4 on it.He said as minumim payment goes down to keep paying what it started out as.

**rainbowgc** · 02-15-2009, 03:17 PM

I saw this too and I thought it was an excellent idea. I like Clark and his new show, he is so down to earth. For anyone who cares he runs on CNN on the weekends - noon EST

**MomToTwoBoys** · 02-15-2009, 06:43 PM

We divided our payments into two and we actually pay that half amount every two weeks. It works great for us and we're actually paying more than the minimum because we set up our repayment plan on a 5-year fixed rate. Instead of paying $105 per month, we pay twice that per month.

**missmanny** · 02-15-2009, 06:54 PM

I get paid every two weeks so I do this with all of my bills.

In essence you will pay 1 extra payment every year but also your interest will be less because you are lowering the balance every time you make a payment so that is days less interest acruing on that ammount.

**lisettelovebug** · 02-15-2009, 08:53 PM

At one point we were doing this with several credit cards, but somehow got away from it - maybe when dh was on strike. not sure. I think maybe I will have to set them back up this way. Hopefully in a couple more months we won't have to worry about it anyways because we will be using income tax refund to pay them off. But this might be a good idea to do for my student loans. I am not sure how it would work with a car payment though, since we're still at the beginning and most of it is interest.

**phoeny_moonstar** · 02-16-2009, 02:49 AM

I do this already. I get paid on a bi-weekly schedule so it just makes more since to me (except for rent) to make payments like this. Makes things a little bit easier around the house IMO.

**Greebo** · 02-16-2009, 08:33 AM

It's a good plan - especially if you set a payment amount based on your current minimum payment and then lock it in. Set up an automatic bill pay from your bank (NOT through the CC, don't trust them!) to the CC every 2 weeks for 1/2 the current minimum, and in addition to the extra pmt each year and the earlier principle reduction, by locking in what you pay each month and not adjusting to the minimum, you will pay off more principle each time than the time before.

**IntlMom** · 02-16-2009, 09:23 AM

Just another vote of confidence from me.....we do this, and have done it for years - works like a charm!

**tervsforme** · 02-16-2009, 09:41 AM

I do this with my mortgage, I think I'll start doing it with my cc also. I got paid friday, so I made half a payment today!

**Greebo** · 02-16-2009, 10:06 AM

Originally Posted by tervsforme

I do this with my mortgage, I think I'll start doing it with my cc also. I got paid friday, so I made half a payment today!

With mortgages, interest is usually accrued once a month, not daily. (Credit cards accrue daily). Paying every other week on your mortgage ends up making 1 extra payment per year, but doesn't otherwise help.

If you are using one of those 3rd party programs that do the every other week payment for you, ultimately you're paying a fee to them for something you could do on your own for free.

**McD** · 02-16-2009, 10:38 AM

This is a good idea. It's not something that I've done, but I'll try it!

**itlw8** · 02-18-2009, 02:00 PM

there is a big problem with that credit cards have changed and most do not have 4 weeks from when they send the bill to when it is due. The bill is issued a week or more after the due date and if you make a payment during that time it does not count on the next months minimum payment... and then if you wait 2 weeks it could be after your due date.

Much better is pay the minimum when you get the bill and pay more 2 weeks later.

You have to watch the dates they seem to change each month.

**MomToTwoBoys** · 02-18-2009, 03:14 PM

If your payment dates are changing each month, I would contact the credit card company about that. In the last six years of having credit cards, I have never had either Bank of Montreal or TD Canada Trust change the due dates on the cards. They've always been a set time of the month.

When we make our CC payments, we forgo the minimum payment and pay an amount that'll satisfy at least the minimum payment in one shot. The other payment, fourteen days later, is extra to kill of the principle.

**itlw8** · 02-19-2009, 11:32 AM

Originally Posted by MomToTwoBoys

When we make our CC payments, we forgo the minimum payment and pay an amount that'll satisfy at least the minimum payment in one shot. The other payment, fourteen days later, is extra to kill of the principle.

That is what I do kinda the day the bill first gets posted online I pay the minimum or minimum Plus then as I get extra money during the month I stick it on the bill I am trying to get paid. That way I make sure all minimums are paid on time and every additional money is pu on a bill before it is spent elsewhere. I love paying online for just this reason.