Can someone explain to me bi-weekly payments vs monthly payments on debt and how that saves interest? Like I'm 5. Thanks.

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Do you mean when people say to pay half the payment and then the rest when due or something like that? If so, I still have no idea, but always wondered what people meant by it. Because it would still be the same amount in a month. Or maybe I just understood the whole thing wrong.

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This is exactly my question! Hopefully the other responses helped

Thanks everyone! Very helpful. I should start doing this

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My making 2 payments a month (bi-weekly) opposed to one (monthly), you'll be paying off the debt 2x faster and in turn paying off the loan 2x faster which cuts the interest because instead of paying interest on 100 payments, you'll be paying interest on 50 payments.

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Adding on to supervisor 1, it saves on interest by reducing the amount of time money is borrowed. If your balance is 1,000 and monthly payment is 50, paying 1x a month you’ll be paying interest on 1,000 for 30 days. Paying 2x a month, you’ll pay interest on 1,000 for 15 days, and then pay interest on 975 for 15 days. Oversimplified example but I hope it helps.

My payment is currently $500 a month with $280ish going to interest. How would you recommend I split it up? I can pay it however I want, but interest automatically comes out on the 1st day of the month. The rest of the money is paid as I please before the last day of the month

Paying half the monthly payment biweekly will pay one full “extra” payment a year, thus reducing your balance quicker and overall paying less interest. It’s a way to trick you into paying quicker. Biweekly = 26 payments = 13 months completed in 1 year

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