I hope someone here can help me. I saw piece on my local news where you can split your credit card minimum payment into 2 payments and send them in every 14 days in order to greatly reduce interest amounts. Is this true? Will this work for an MBNA revolving acct (no credit card with this acct)? I was actually thinking of sending in my minimum payment when due, and try to send a second payment of an equal amount or greater 14 days later marked principal only. If anyone out there knows if or how this works, I would appreciate your feedback. I have quite a bit of debt and I am motivated to get it paid off as quickly as possible. Thanks.
Yes, it's true and that's what the cc companies don't want you to know. If you send in double-payments each month, you'll reduce your debt much faster.
Match your payments to your cash flow. If double payments works for you, fine, but if you have 2 or more CC accounts, just project your cash flow requirements thru your next paycheck, and put as much as you can on your next CC bill due that is carrying a balance and adding interest. And if you can send it out today, but you don't have to send it for a couple week to still meet the due date, send it today. Interest is computed daily, based on the day they get your check. Highest rates first, of course. Any payment plan that results in your money put to work paying down debt and reducing interest gains over parking your money in your bank account for a couple weeks with current low interest rates. Also, check your total debt, account balances, and payments due, by phone, on at least a weekly basis. This ensures you don't get stuck if a bill arrives late, allows you to accurately project your cash needs to make the largest payments you can, and gives you a more accurate picture of your true debt level. CC statements fool you into thinking that is how much debt you owe, when by the time you receive it, it is already out of date and doesnt include recent charges. The fewer outstanding bills you have, the less likely you are to make a mistake, and the easier it is to optimize what is left.
