Happy Hump Day Lovelies! I wanted to give you a quick tip that I am using to help me pay down my credit card debt. If you can, I would recommend you plan your payments on debt such as your mortgage and credit cards to bi-weekly payments. Since there are two months out of the year that have five weeks, you end up with an extra month’s payment at the end of the year. Those payments can be applied directly to the principal, which I recommend, or give you the opportunity to have these loans paid one month in advanced.
PROS
- It helps you pay off debt faster
- Reduces the amount of interest you have to pay back over the life of the loan
CONS
- All lenders and credit card companies do not allow you to split your payments. If this is the case, you can create a money envelope for that extra payment you will have at the end of the year and use it to pay on top of your monthly minimum. It’s not a true “con” on the pros and cons list, but it does require an extra step and discipline to not spend that money
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