when to pay

iVillage Member
Registered: 06-28-2008
when to pay
13
Sat, 07-04-2009 - 11:19am
hello, Happy 4th to everyone. The question I have...I can see my new statement online for my c/c, it is better to pay it as soon as it comes out or closer to the due date. I believe it is, as soon as it comes out...but not 100% sure. Thanks everyone :)

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iVillage Member
Registered: 04-12-2007
In reply to: cfrancioli
Sat, 07-04-2009 - 1:39pm

Mary Ann taught me this and I am glad to pass on her wisdom.

iVillage Member
Registered: 11-17-2007
In reply to: cfrancioli
Sat, 07-04-2009 - 3:47pm

Yes it is little old me that is a big believer in paying extra or even the normal payment the day after the closing date of the cc statement. Interest is figured on a daily balance of a bill Due dates are sometimes 20 days after the closing date of an account. Some companies inflat that daily balance I had a card that I really believed just picked out an amount to figure interest on each month out of air. That is the account I targeted to get paid off first.. One time it was like 800.00 more then what my true balance was. But most pretty much stay with in a couple of hundred dollars.


Since your interest is started the day after the closing date on some amount You want that amount to be as low as you can make it. Lower amount lower interest charged. Simple as that. Also anything paid to the card after the closing date is considered toward the normal payment for the month.

iVillage Member
Registered: 06-28-2008
In reply to: cfrancioli
Sun, 07-05-2009 - 9:44am
Thank you Mary Ann and Robyn, both responses helped me out. I am a true believer that "every little bits helps" Good luck to everyone on their financial journey, whether it is snowflaking; saving or paying down that debt :)
iVillage Member
Registered: 03-29-2003
In reply to: cfrancioli
Tue, 07-07-2009 - 6:35pm
I just saw this Bankrate.com article pop up in my email today. It gives a little more explanation on the benefits of paying early:





Pay Credit Card Bill Early and Save


Kimberly














Kimberly



iVillage Member
Registered: 11-17-2007
In reply to: cfrancioli
Wed, 07-08-2009 - 2:42am

I have been telling everyone for a long time about paying the day after the closing date but I never realized it was that much of a savings until I read the piece you listed. See I have very little interest my highest right now is like 3.9 so even if I pay the day after the closing date I only save maybe 50 cents at the most.


But I will

iVillage Member
Registered: 08-24-2007
In reply to: cfrancioli
Wed, 07-08-2009 - 7:12am

Very interesting article.

Kate


empty purse

iVillage Member
Registered: 04-10-2003
In reply to: cfrancioli
Wed, 07-08-2009 - 7:51am

Hahahaha Kate I had to laugh at that one because I do the same thing for the same reason!!!


I am always worried that I will forget to make a payment or worse yet, spend the money on something else, so whenever I have any extra, even if its just $5.00, I send it to the CC. I often make the minimum by doing $5 here $10 there.


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 08-04-2008
In reply to: cfrancioli
Wed, 07-08-2009 - 8:57am

I started doing it because you said to, MaryAnn, and because I want the money out of my checking account so I don't spend it too.




iVillage Member
Registered: 03-29-2003
In reply to: cfrancioli
Wed, 07-08-2009 - 3:02pm
The article also mentions making micropayments throughout the month, but be careful with that.  I found out recently that my Citibank card will only allow 4 payments per payment cycle.



Edited 7/8/2009 10:54 pm ET by kimberlyjh


Kimberly



iVillage Member
Registered: 03-29-2003
In reply to: cfrancioli
Wed, 07-08-2009 - 10:55pm

AHA! I did a little more researching and it turns out that the "payments per cycle" limit only applies to payments made using the credit card's website. If you send payments directly from your bank via online bill pay, you can make as many as you want.



Kimberly














Kimberly



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