Many Tennessee residents know how easy it is to rack up credit card debt. What is not so easy; trying to pay it off. Combine high credit card bills with high interest rates, and the debt just never seems to go away. Fortunately, there is one solution that can help: micropayments.
Most consumers pay their credit card bills once a month. However, most credit card companies allow multiple payments each month. Some credit card companies even allow consumers to pay online up to once a day. These small, frequent payments are called micropayments, and, for those who get paid on a weekly or bi-weekly basis, paying weekly or every other week can be a more manageable way to pay down credit card debt.
Another advantage to the micropayment method is that credit card companies use the average daily balance to charge interest. Therefore, the more often a person pays, the lower their balance will be. Micropayments can be set up easily online. They can be automatically deducted from a checking account on a regular basis, making credit card debt reduction virtually effortless.
For those who have multiple credit cards, micropayments can be a good idea. Pick the card with the lowest balance, and aim to pay it off by a certain date, using micropayments. By paying a card multiple times a month, consumers also have a lower risk of missing the due date, which can add costly late fees and increased interest rates.
By combining micropayments with a solid budget, consumers can trim expenses, and use the money saved toward credit card payments. Paying off debt takes time, but, with some willpower and patience, it can be achieved.
Source: LowCards.com, “Reduce Credit Card Debt with Micropayments,” Bill Hardekopf, Nov. 5, 2013