Hi, I’m new here, so I hope this hasn’t been covered. I’ve been told that making two credit card payments in a month somehow messes with the interest calculation and pays the debt off faster. For example, if my minimum is $25, but I usually send in $50, split it into two payments of $25, one at the beginning of the month and the other in the middle.
I don’t remember the logic. Anybody tried this?
Can’t see how this would work. Now, if you normally made a payment of $25 a month and you started making two, $25 payments a month that would do wonders to bring down the principle amount. The whole key is to bring down the principle as fast as possible. Splitting a $50 payment into two payments wouldn’t do that. In fact, you’d be worse off than making that $50 payment to begin with.
I read about this technique in this book:
When I get home tonight, I’ll reread it and see if I can summarize her logic. I had forgotten where I read it, but found it again last night.