- More closely align
paychecks and payments.
Paid every week? Make a small payment every week
instead of one big one each month. You'll even out
your monthly cash flow.
- Pay down credit card debt
more quickly, in the
same way a biweekly mortgage works. With biweekly
mortgages, homeowners pay half their monthly
mortgage amount, but they pay it every two weeks.
With 52 weeks in a year, that means 26 half payments
-- or 13 monthly payments instead of 12. On a
mortgage, biweekly payments can shave about seven
years off a 30-year mortgage. The same principle
would work if you divided your monthly payment in
two and then paid that amount every two weeks.
- Take advantage of
windfalls. Once you
get in the habit of paying multiple times, credit
card payments will come to mind if any windfalls
come to your wallet.
- Build good payment habits
and increase satisfaction.
Seeing your balance fall day by day keeps you
focused on the task of climbing out of debt and
builds a sense of accomplishment.