If you can get a good hike, then you can easily make
extra payments to your creditors every month.
Not exact matches
Add up all those little savings each month, and send them as an
extra payment on the bill you decided
to pay off first (keep sending the minimum
to your other
creditors, too).
Honestly, I would hope no
creditor would fall for that in our case — somehow, we've been paying $ 500
to $ 800
extra a month consistently for almost a year, and yet then we miss two
payments and say we can't afford it?
These
extra payments are additional
payments, and are only made after minimum monthly
payments are made (on time),
to each and every
creditor.
Since you have already sent in your minimum
payments (on time)
to all
creditors, and you have already sent your scheduled (and budgeted for)
extra payment, any of these options is available
to you.
The idea is
to track your
creditors, list the balances due, see the interest rates on your debt, make your monthly
payments, and then target one debt using an amount you have available for
extra payments.
Paying
extra money
to your
creditors because you are a few days late in making your
payments provides you with no benefit and may reduce your credit score and / or increase the interest rate that you have
to pay for credit.
We paid minimum
payments to all of our
creditors — and any
extra money went towards paying off the debt at the top of our list.
Our current debt management plan has us sending
extra payments to our «highest priority»
creditor throughout the month.
The commenters set forth an example in which a borrower finances $ 100 of closing costs in a 30 - year mortgage loan having an eight percent fixed annual rate, and the
creditor sends the consumer a $ 100 refund check, illustrating that the
creditor will still earn $ 240 on that refund over the life of the loan unless the borrower sends an
extra $ 100
payment to her mortgage servicer.