Want to Erase Credit Card Debts? Pay More Often

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As bill payers, we are generally taught to make one lump payment to take care of our debt obligations each month. We formulate our budgets based on monthly expenses versus monthly income. But for those who are weighed down in credit card debts, making more than one payment a month can help reduce debts, especially credit card debts, much faster.

How to Make Small Payments Work
Micropayments are smaller payments made towards bills throughout the month rather than just once a month. By making these smaller payments regularly, you can cut down on the amount of interest you have to pay. The more often you pay, the less interest you have to pay rather than paying a month’s worth of interest with just one payment. Credit card companies add interest fees daily. By making payments more often, you are reducing both your balance and interest in a faster time frame than using one monthly payment.

To find out how much money you can pay using micropayments, take your monthly bill and divide it by two. You can pay that total every two weeks. Instead of making just 12 payments a year, you’ll actually have made an extra month’s worth. You can also take it a step further and divide your payment by four, making a small payment each week. As any financial expert will tell you, extra payments result in the faster elimination of debt.

You will need to contact your credit card company to find out if weekly or bi-weekly pay are acceptable. If they are, you can set up automatic payments if it is available to make it easier for payments to be processed regularly and reduce the risk of forgetting to make the payment.

Why Pay More Often?
Besides reducing debts more quickly, you are also more likely to afford the smaller payments than one large payment during the month. You’ll get a better handle on your budget too because you’ll have to keep a closer eye on your spending and bill paying.

By regularly making payments, you’ll also help resurrect your credit score. The regular payments will have a positive affect on your credit score and can help give your history a boost, especially if you have been late in the past.

Smaller, more manageable payments can also help reduce the financial strain of living paycheck to paycheck. You won’t have to worry about having enough cash to cover your debts at the end of the month since you are making smaller weekly, or bi-weekly, payments and financial stress can be reduced. Plus, overall you are eliminating debts faster than you otherwise could which enables you to start saving more money each month. You might be more inclined to stick with the regular payments as they will be more manageable and produce faster results. As you begin to see your debts reduced, you’ll likely be inspired to keep working towards your goals of total debt elimination.


  • Vee

    Thanks for the excellent article – I think making smaller, but more frequent payments really helps to cut down debt faster as well as save interest too. And it’s very true that it can prevent your funds from dipping too low at the end of the month.

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