As a result, there is less interest spread over the term of the shorter loan — and less interest added on to the monthly payments. (homebuyinginstitute.com)
With this method, the lack of interest spread across multiple cards will lower your overall monthly payments. (selflender.com)
Basically, when the interest that a bank earns from loans is greater than the interest it must pay on deposits, it generates a positive interest spread or net interest income. (investopedia.com)