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Author: TMF2Aruba Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308687  
Subject: Re: (1) Weekly Payments (2) Credit Union Date: 4/8/1998 4:15 PM
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<<I am currently paying down a $6500 cc debt (on two cards) and could easily spread the $500 or $600 I'm paying out each month over weekly payments. Of course it will cost me an extra
$2 or so in postage, but will there be a significant interest savings as my average daily balance would be lower?>>

Hey, Jeangaijin!

I have to tell you I was quite intrigued by your question, and was about to pompously write that there was only one answer to your question--that the only smart move would be to send in a whole payment of say $500 once a month instead of weekly payments of $125, as the interest would constantly be accruing on the entire balance...

But then, I though, hey, maybe not...

So I just made a call to Citibank, and gave them a hypothetical based on your question. Interestingly, it turns out this Fool was fooled! They told me that it could quite possibly be more beneficial to send in those weekly payments because the interest is figured on an average-daily-balance, and the more payments that are sent in (the higher the better, of course), the more that balance is knocked down.

So, there, it seems may be your answer. : )

Hope this helped!

Tony
...but I still am...

Off2Aruba
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