No. of Recommendations: 0
<<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
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement