Make Smaller, More Frequent Credit Card Payments To Reduce Interest

Make Smaller, More Frequent Credit Card Payments To Reduce Interest

When you have credit card debt, it’s an uphill battle to get rid of it because the longer it exists, the more interest you have to pay. To help reduce the amount you lose in interest, try dividing your payments into smaller but more frequent chunks.

Photo by Sean MacEntee

Many credit card providers calculate interest on a daily basis. That means that paying $50 every two weeks will result in slightly less interest over time than $100 paid at the end of the month. Depending on how much debt you have, that might not be a huge dent, but it adds up over time.

More importantly, by breaking your credit card payments into smaller pieces, it’s easier to stomach the hit to your cash flow. The easier it is to make a payment, the less you’ll resist. Check out TIME’s piece below for more ways to reduce your credit card debt.

5 Smart Strategies to Eliminate Your Credit Card Debt [TIME]


  • Might be worth mentioning here, if you are just paying the minimum, some banks dont recognise a payment unless its between a certain timeframe. I have been stung with a late payment fee and a phone call before because I paid 4 times the amount that was due, 2 weeks earlier than the due date,

  • if you can’t afford to pay off your credit card every month, you shouldn’t have one in the first place

    • That almost defeats the purpose of a CREDIT card, unless you get reward points on the card, you may as well have a debit card.

      I always used to pay it off very quickly, but around my wedding time, so much to pay for, it skyrocketed to more than i could afford to pay off in a few months.

  • The best way to reduce interest is to pay it all off. Personally I have an aversion to paying the banks any more than I have to.

  • The more frequent your payments, the more favorable you will look in the future too when you want to apply for other finances.

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