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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: bi-monthly payments Date:  7/2/2001  12:00 PM
Author:  jeffrey2112 Number:  79181 of 308881

I was just reading about strategies to reduce debt, and happened upon the idea of making bi-monthly (in the sense of twice a month) payments to credit card companies. I don't quite understand how this helps more than paying them on time

Not sure how this works w/ credit cards, did it say to make the full payment twice a month or half payment twice a month? With mortgages, a bi-monthly payment consists of making a half payment every two weeks. The reason this helps w/ the interest is that you end up making 13 payments in a year. Perhaps this is the idea behind the credit card as well.