Well, what I found out is that if you pay say a quarter of the minimum due way early on, they will take that off your balance, but will expect the full minimum at due time. Usually, I wait till AFTER the next statement date to pay a part of a minimum amount.
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. Just be sure the total of your payments equals or is greater than the minimum payment due AND that all are received by the CC company between the statement date and the due date.
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.
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. 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.
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.
Thanks to everyone who replied with great answers and advice to my post. I appreciate it! I am going to try doing this.