Skip to main content
Personal Finance & Money

Return to Question

Question Protected by Chris W. Rea
added 502 characters in body
Source Link
johnny
johnny
  • 203
  • 2
  • 5

If I have x amount on a credit card, let's say $5000. And let's say I make a paycheck of $750. If I take that $750 and put it on the CC, and I do not spend the newly credited $750 immediately (say it takes me two weeks), doesn't my daily accrued interest go down and my time to payoff lessen? I still use the CC to pay the bills. I simply do it from the CC over the next week(s).

In other words, by decreasing the daily accrued interest, am I paying more on my CC such that I would eventually pay it off because you could theoretically get to an extremely small amount of daily interest?

Side note: I only ask because I saw all the HELOC ads about paying it down and all that. I couldn't tell if that is legit. But it did make me think about doing it on a CC.

Edit: This is a question about the "money math" more than help. I can pay my bills, but I wondered if this would indeed do things quicker or more efficiently. Mostly because I do not wish to give any more money to the CC company than is necessary. They gave me a loan. I agreed to the terms. Everyone is happy. If I can legally reduce accrued interest, that is a good thing, but I didn't know if the math worked out.

I apologize if I gave the impression I was drowning in debt. I am not.

If I have x amount on a credit card, let's say $5000. And let's say I make a paycheck of $750. If I take that $750 and put it on the CC, and I do not spend the newly credited $750 immediately (say it takes me two weeks), doesn't my daily accrued interest go down and my time to payoff lessen? I still use the CC to pay the bills. I simply do it from the CC over the next week(s).

In other words, by decreasing the daily accrued interest, am I paying more on my CC such that I would eventually pay it off because you could theoretically get to an extremely small amount of daily interest?

Side note: I only ask because I saw all the HELOC ads about paying it down and all that. I couldn't tell if that is legit. But it did make me think about doing it on a CC.

If I have x amount on a credit card, let's say $5000. And let's say I make a paycheck of $750. If I take that $750 and put it on the CC, and I do not spend the newly credited $750 immediately (say it takes me two weeks), doesn't my daily accrued interest go down and my time to payoff lessen? I still use the CC to pay the bills. I simply do it from the CC over the next week(s).

In other words, by decreasing the daily accrued interest, am I paying more on my CC such that I would eventually pay it off because you could theoretically get to an extremely small amount of daily interest?

Side note: I only ask because I saw all the HELOC ads about paying it down and all that. I couldn't tell if that is legit. But it did make me think about doing it on a CC.

Edit: This is a question about the "money math" more than help. I can pay my bills, but I wondered if this would indeed do things quicker or more efficiently. Mostly because I do not wish to give any more money to the CC company than is necessary. They gave me a loan. I agreed to the terms. Everyone is happy. If I can legally reduce accrued interest, that is a good thing, but I didn't know if the math worked out.

I apologize if I gave the impression I was drowning in debt. I am not.

Tweeted twitter.com/StackFinance/status/902604687488290816
Source Link
johnny
johnny
  • 203
  • 2
  • 5

Can you pay off a Credit Card quicker by reducing the daily balance?

If I have x amount on a credit card, let's say $5000. And let's say I make a paycheck of $750. If I take that $750 and put it on the CC, and I do not spend the newly credited $750 immediately (say it takes me two weeks), doesn't my daily accrued interest go down and my time to payoff lessen? I still use the CC to pay the bills. I simply do it from the CC over the next week(s).

In other words, by decreasing the daily accrued interest, am I paying more on my CC such that I would eventually pay it off because you could theoretically get to an extremely small amount of daily interest?

Side note: I only ask because I saw all the HELOC ads about paying it down and all that. I couldn't tell if that is legit. But it did make me think about doing it on a CC.