By: Amy
Kevin, in the U.S. it’s usually optional how you pay — yes, all the companies are trying to get people to agree to automatic withdrawals from banks, but for the most part they don’t have the right to...
View ArticleBy: partgypsy
Amy, I agree directly paying bills suits me better. The last few months I tried to streamline my financial life and automated a handful of bills, but they were scattered throughout the month at odd...
View ArticleBy: James
To resolve partgypsy’s problem, it might be helpful to have two checking accounts. Have your pay deposited into one and then transfer the amount you need each month (for fixed bills like the mortgage,...
View ArticleBy: Jayson
I agree and have done the same thing for years. It’s always helped pay things down quicker and has saved a little bit of money over the long-haul. I’ve never truly thought about the savings though,...
View ArticleBy: kristine
This is a terrific post. I did this a lot just out of laziness- not wanting to spend forever balancing my checkbook. Figured it helped a little, but I had no idea I was saving so much!
View ArticleBy: Betty
What I like to do is pay enough so that the balance ends in a round number. That way when I figure my debts, they’re easier to add. I take last month’s balance, add any finance charges and the amounts...
View ArticleBy: Kristin @ klingtocash
It always amazes my clients when they see this calculation. If you merge your theory with the Debt Snowball, you are talking about some serious debt killing!
View ArticleBy: Kyle
I’ve been doing this for the last year too, as we struggle to get our finances in order, and if nothing else the psychological benefit is huge. We’ve got from feeling like dirt because we can’t keep up...
View ArticleBy: Kat
This is good in most cases, but be sure to follow up that it’s being credited properly. I worked for a national gym chain once and any overpayment was not processed automatically properly by the...
View ArticleBy: Bill in Houston
We round up our mortgage payment. What we’re doing instead of paying bimonthly is adding the difference in an amount to our monthly payment (one-twelfth of a mortgage payment), and then we round that...
View ArticleBy: Georgia
Rick – I remember the days when the interest rate on home loans was 15% (mid 80′s) and I advised all my loan customers to round up – if your bill is $325, your should be able to round up to $350-400...
View ArticleBy: Sara
I started paying about $13 extra on my student loans…several months into repayment I had an emergency, and didn’t have the cash. I looked at my student loan and realized that instead of paying $175, I...
View ArticleBy: DB Cooper
Paying AHEAD is different than paying DOWN on a loan. Paying ahead gets you a month or two or three ahead on your payments. But it does not pay off your loan any sooner per se, or reduce the total...
View ArticleBy: Rick
Georgia – If I had the huge burden of a 15% mortgage rate then I probably would forgo all other investments until that house was paid off… but I currently have a 5% rate (13.75 years remaining). I’m...
View ArticleBy: AnnJo
All the financial advice you hear says that as you get older, more of your investments should be in fixed income items like bonds and CDs. In the last couple of years as fixed income yields have...
View ArticleBy: Do You Dave Ramsey?
Fantastic… thanks for running the numbers for us. I would not have imagined such a difference on just 77cents per month… an amount no one would ever miss. The $4.77 is kinda the same, who would miss...
View ArticleBy: Bankruptcy Saskatoon
Great article!! By providing numerical examples you have made is easy to understand extra amounts one can save by just rounding up their debt payments. Great idea and thanks for sharing.
View ArticleBy: deRuiter
Dear Rick #18, Most people are better off getting this guaranteed 5% return without paying taxes on the money than the return they will get AFTER taxes on investments. And most people will NOT get an...
View ArticleBy: Debt Concerns
Thanks for providing examples which makes it more clear to understand. It can definitely make financial payments easier and more recordable. Plus, you will be able to save money in the long run. Great...
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