We see it all the time; borrowers who want to purchase a home but have too much credit card and loan debt to make it happen. Here’s a good way to get rid of it a little faster! Biweekly credit card payments have been the talk of financial experts for a long time Why? Because they can be used as a great way to pay off credit card and loan debts faster! Many people ask; “whats the difference if I pay $200 once a monthly or $100 biweekly?” When it comes to credit cards, and some personal and auto loans, many companies amortize interest daily. In a nutshell, splitting your payment up and applying a portion of it biweekly means cutting down on principal more often, and reducing the amount that can gain interest. Another bonus! If you get paid biweekly and make your credit card and loan payments on that schedule, you basically end up paying an extra payment each year!
Want to learn a little more about how it all works? Check out what the experts at Debt Wave credit counseling have to say about the subject, and how you can Pay Off Your Credit Card Debt Faster By Making BiWeekly Payments!
If you want more one on one assistance on your personal situation, talk to your experienced MHM Loan Officer to discuss what the best route to take is for your own financial situation! We would be happy to sit down with you and take a look!
Photo Credits: Featured Photo courtesy of DebtWave.com. Content Photo courtesy of The Money Coach online.