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Should You Pay Your Credit Cards More Than Once a Month?

Should You Pay Your Credit Cards More Than Once a Month?

Angela Colley

Via iStock

Via iStock

I’ll be honest, at first, the thought of paying my credit cards more than once a month irked me. After all, who has time for that? I like my credit card payments automatic and thought-free so I can spend my brain power on other things, like finally learning all the character names in Game of Thrones. But Holly Johnson over at The Simple Dollar has a bunch of good reasons for why you might want to make an extra payment (or two) on those credit cards.

At first, there is the obvious benefit of paying more frequently: you might avoid paying more over time. If you don’t get that balance paid off every month, you’ll start to rack up interest. That’s not good, but it could also get worse if you have a reward card.

“Since rewards credit cards tend to charge higher interest rates than average, this is especially important if you use cards like I do—to rack up points. If you do carry a balance while pursuing rewards, it’s almost guaranteed that the interest you pay will wipe out any rewards you earn.”

So, avoiding those pesky interest charges is one big proponent for making multiple payments, especially if you’re the type to forgo making the full payment every month if you’re short on cash (guilty), but there is another benefit:

“Paying our bills multiple times per month is also an exercise in self-restraint. By checking in with our bills often, we’re forced to accept our spending and fork over the cash to cover our purchases regularly.

While paying with a credit card makes it easy to put off the pain of each purchase, using your actual money to pay your bill hurts—and it should.”

Especially during the holiday season—when I swear sometimes I can hear my credit card sigh—having a forced reckoning earlier in the month seems like a good way to curtail spending.

Those are two good reasons to consider a bi-weekly credit card payment, but Johnson has a bunch more. Check out the rest of “Why We Pay Our Credit Card Bills More Than Once Per Month” at The Simple Dollar

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