Paying CC early saves interest or not?
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Paying CC early saves interest or not?
| Thu, 01-08-2009 - 3:31pm |
I am working on 2 credit cards that are about $1,200 and $800 each.
My question is, if my payment is due on the 15th, but I get the payment to them by the 10th, am I saving myself a bit of interest or not?
Since they are such low debts, I doubt it will make much difference in the long-run, but since there are those months when I have the payment a week or two earlier than I NEED it, I wondered if it helped interest-wise?
Thanks!


Yes, it helps by lowering your daily average balance which is what they use to calculate your finance charges. It's a good, painless way to lower your overall cost of the debt albeit only a little bit.
Peg