Debt is a numbers game \u2014 your balance, your interest and your monthly payment can individually impact when and at what cost you repay your debts. <\/p>\n\n\n\n
But here\u2019s something you might not know: The actual timing of when you pay your monthly bills can make a huge difference in that end result, too. How quickly your balances grow (or shrink) depends more on scheduling than you\u2019d imagine. And to pay off your accounts smarter, you need to learn how to time debt payments.<\/p>\n\n\n\n
Here\u2019s a scary thought: personal loan and credit card interest often builds daily<\/em>. That means that every hour you hold onto debt, you\u2019re being charged for it. Keeping a sense of urgency about paying down your debt can help you see the costs clearly. After all:<\/p>\n\n\n\n The only surefire way of stopping interest before it has a moment to begin accumulating is to immediately settle up after payday or purchases, not just by your statement date<\/a>. Lowering your daily balance means less interest and great potential savings over the life of your account.<\/p>\n\n\n\n Making minimum payments<\/a> doesn’t stop interest. In fact, relying on minimum payments is how interest gets out of hand in the first place. Because interest still adds up daily, your minimum payment goes mostly into your interest, not your balance. And that means you\u2019ll stay in debt much longer than you\u2019d probably planned.\u00a0<\/p>\n\n\n\n It\u2019s clear that minimum payments are not the most convenient choice in the long run: Making the most affordable payment available can ultimately lead you into debt that literally lasts a lifetime. Considering the consequences, it is always a good move to pay more than your minimum to speed up your debt repayment.<\/p>\n\n\n\n One of the easiest, most powerful timing tricks is simply to make two payments in a month instead of just one. The best part of this method is that it costs nothing, and heads off budding interest before it gets to a new billing cycle. Splitting your payments to match your payday and billing cycle\u2019s end can:<\/p>\n\n\n\n Billing cycles decide how much interest you pay based on balances during a specific timeframe. Paying after cycles end misses the chance to lower interest charges.<\/p>\n\n\n\n Pay a small amount before each billing cycle closes. Just $20-$30 early makes interest charges smaller.<\/p>\n\n\n\n If you need to open a line of credit, give yourself the advantage from day one by:<\/p>\n\n\n\n If your need for a new line of credit isn\u2019t urgent, using time to your advantage can help put you on the best money-saving cadence. <\/p>\n\n\n\n If high-interest debts are growing faster than you can pay, then maybe it\u2019s time to change tactics<\/a>. And with Accredited Debt Relief, you can do just that.\u00a0<\/p>\n\n\n\n By enrolling your eligible debts into our debt consolidation program at the right time, you\u2019ll enjoy some real benefits like:<\/p>\n\n\n\n Professional guidance can help you choose the best consolidation timing to maximize savings and reduce financial stress. So give us a call, and we\u2019ll walk you through slashing your payments today \u2014 and how our approach can save you your time, money and sanity in the long run.<\/p>\n\n\n\n
Minimum Payments Don’t Stop the Clock<\/h2>\n\n\n\n
Let\u2019s Say You Have a $15,000 Credit Card Balance at 18% Interest<\/h3>\n\n\n\n
Payment Calculation<\/strong><\/td> Starting Minimum Payment<\/strong><\/td> Payoff Timeline<\/strong><\/td> Total Interest Paid<\/strong><\/td><\/tr> 5% of Balance<\/td> $750\/ Month<\/td> About 11 Years<\/td> $6,359.33<\/td><\/tr> 3% of Balance<\/td> $450\/ Month<\/td> About 23 Years<\/td> $ 14,698.31<\/td><\/tr> 2% of Balance<\/td> $350\/ Month<\/td> About 58 Years<\/td> $43,396.58<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n 3 Approaches to Timing Debt Payments<\/h2>\n\n\n\n
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Debt Consolidation at the Perfect Moment<\/h2>\n\n\n\n
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