Comments on: Maximize The Power Of Micro-Payments http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/ Debt Reduction Rocks - We Are Living Debt Free! Fri, 10 Feb 2012 00:09:10 +0000 hourly 1 By: Angie http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/comment-page-1/#comment-172049 Angie Tue, 11 Aug 2009 16:29:15 +0000 http://www.ncnblog.com/?p=2534#comment-172049 I think most of the people commenting are confusing micropayments with snowflakes. Although both reduce the interest, micropayments are basically taking snowflakes one step further by applying the payments to the loan at various times during the month. This reduces the balance on a daily basis which in turn reduces interest. You need to test out your loan/cc with the first couple payments though. Some companies will reduce your monthly payment by the amount you need. Citibank/Student loan corporation is notorious for this and I've found I can only send in extra payments in the 5 days between my due date and when the next statement is available. I think most of the people commenting are confusing micropayments with snowflakes. Although both reduce the interest, micropayments are basically taking snowflakes one step further by applying the payments to the loan at various times during the month. This reduces the balance on a daily basis which in turn reduces interest. You need to test out your loan/cc with the first couple payments though. Some companies will reduce your monthly payment by the amount you need. Citibank/Student loan corporation is notorious for this and I’ve found I can only send in extra payments in the 5 days between my due date and when the next statement is available.

]]> By: LaDonna http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/comment-page-1/#comment-171711 LaDonna Fri, 07 Aug 2009 18:46:02 +0000 http://www.ncnblog.com/?p=2534#comment-171711 I've recently started using a similar method. The day my paycheck hits my checking acct, I move everything that was left over into savings. Throughout the month, if I get little bits here and there, I pop them into savings. Then I make one big payment on a card. What's great about this method is that the money is difficult for me to get at and it's effectively 'spent' in my mind, but it sits in savings to 'cushion' my checking acct, just in case (they're linked for overdraft protection). If I've miscalculated or forgotten an expenditure (as has happened on occasion), I won't rack up overdraft fees. I’ve recently started using a similar method. The day my paycheck hits my checking acct, I move everything that was left over into savings. Throughout the month, if I get little bits here and there, I pop them into savings. Then I make one big payment on a card. What’s great about this method is that the money is difficult for me to get at and it’s effectively ‘spent’ in my mind, but it sits in savings to ‘cushion’ my checking acct, just in case (they’re linked for overdraft protection). If I’ve miscalculated or forgotten an expenditure (as has happened on occasion), I won’t rack up overdraft fees.

]]> By: Kreestee http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/comment-page-1/#comment-171631 Kreestee Thu, 06 Aug 2009 17:36:04 +0000 http://www.ncnblog.com/?p=2534#comment-171631 @Kim H.- Awesome! Just what I was looking for. ~k @Kim H.- Awesome! Just what I was looking for.

~k

]]> By: Kim H. http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/comment-page-1/#comment-171625 Kim H. Thu, 06 Aug 2009 16:02:57 +0000 http://www.ncnblog.com/?p=2534#comment-171625 @Kreestee - I think this post contains the calculator you're looking for: http://www.ncnblog.com/2008/08/29/calculating-average-daily-balance-with-free-spreadsheet/ (You can also access it by clicking the "Average Daily Balance" hyperlink in the current post). @Kreestee – I think this post contains the calculator you’re looking for:

http://www.ncnblog.com/2008/08/29/calculating-average-daily-balance-with-free-spreadsheet/

(You can also access it by clicking the “Average Daily Balance” hyperlink in the current post).

]]> By: Mary H. http://www.ncnblog.com/2009/08/04/maximize-the-power-of-micro-payments/comment-page-1/#comment-171555 Mary H. Thu, 06 Aug 2009 01:23:11 +0000 http://www.ncnblog.com/?p=2534#comment-171555 I've used micropayments on our mortgage. However, it's best if you can view your mortgage online. 50% of the time, our mortgage company applied the extra payment to our escrow account, even though I attached a note "apply to principal." I'd call them and they'd always admit it was their error. But I wonder how many other people didn't check and therefore never reduced their principal. Don't trust your mortgage company to post it correctly!! I’ve used micropayments on our mortgage. However, it’s best if you can view your mortgage online. 50% of the time, our mortgage company applied the extra payment to our escrow account, even though I attached a note “apply to principal.” I’d call them and they’d always admit it was their error. But I wonder how many other people didn’t check and therefore never reduced their principal. Don’t trust your mortgage company to post it correctly!!

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