Feeling fed up with credit card companies and all the ways they manage to get your money? You can win at their game – and pay down your card faster. Interest accumulates daily whenever you carry a balance on a credit card. Because federal law requires credit card companies to process payments when they arrive, when you send your payment in sooner, you pay less interest.
One way to really mow down some of that interest is to stop charging on the card, make payments every other week rather than every month, and never decrease the payment amount until the card is paid off.
Notice that by following the biweekly schedule rather than the monthly schedule this card would be paid off almost 10 months earlier while saving $339.01 in interest.
Notice that it would take more than 25 years to pay off that card by simply sending in the ever-descending minimum payment each month. Not only would it take you 25 years to pay the balance off, but it also would cost you $6,332.19 in interest.
If you can only manage to pay the minimum due, you may still consider the biweekly pay-down method. It will help your money go toward more principle and pay the card off faster. Finally, if you must use a credit card, try to put purchases on a different card while you pay this one down.
One way to really mow down some of that interest is to stop charging on the card, make payments every other week rather than every month, and never decrease the payment amount until the card is paid off.
Notice that by following the biweekly schedule rather than the monthly schedule this card would be paid off almost 10 months earlier while saving $339.01 in interest.
Notice that it would take more than 25 years to pay off that card by simply sending in the ever-descending minimum payment each month. Not only would it take you 25 years to pay the balance off, but it also would cost you $6,332.19 in interest.
If you can only manage to pay the minimum due, you may still consider the biweekly pay-down method. It will help your money go toward more principle and pay the card off faster. Finally, if you must use a credit card, try to put purchases on a different card while you pay this one down.
