An Easy Way To Save On Finance Charges

Next time you get one of your credit card bills take a look at how they calculate the finance charges. If you happen to have a card where the finance charges are calculated by the Daily Periodic Rate being applied on a daily basis you can actually save money on finance charges without increasing the amount of money you pay over the course of a year.

As an example, lets say you have a credit card balance of $3000.00 with an APR of 15%. That gives you a Daily Periodic Rate of .04%. Now lets assume you're paying $300 a month towards this card. Typically you wait for the bill and send the $300 dollars all at once.

However, if you were to split this into two equal payments of $150 every two weeks, you'd save $0.86 the first month.

Now I know that isn't get you any closer to being debt free anytime soon. However, over that same 28 day period, the credit card company is making an average of $1.28 per day on you. While minor, $0.86 cents just might be the minor victory you need to help you feel like you are in control of your debt.

Since it isn't obvious I'll go ahead and say it, if you pay by mail you'd be better off paying the one payment considering the postage.