Dumb question about Credit card payment

[djheater]

I'll probably end up calling, but I'm not sure if the person I talk to will actually be able to answer the question.

My minimum payment on a large balance is $240

Could I make two payment in the same month and have that fulfill the minimum or does it have to be a single payment to fulfill the minimum?

I don't want to get hit with late charges if the minimum isn't met.

 

[ENTPTexan]

With credit card companies, the answer is inevitably the one that will hose you over the most and give them more fees.

 

[nycxandy]

Either way you have to save up $240 to pay before the deadline. Why not just delay the first and send it in with your second.

 

[OZEE]

You need to check with them, but I believe that they need to receive the minimum payment before the due date, whether it's one payment or two - just so they have the whole amount in time...

 

[dartworth]

you can make 10 payments of $24 if you want. just get it all in by the due date...

 

[vtecluder]

Originally posted by: djheater
I'll probably end up calling, but I'm not sure if the person I talk to will actually be able to answer the question.

My minimum payment on a large balance is $240

Could I make two payment in the same month and have that fulfill the minimum or does it have to be a single payment to fulfill the minimum?

I don't want to get hit with late charges if the minimum isn't met.

They just need 240bucks (minimum payment) by the due date. Be it in one or be it in hundred installments.

 

[her209]

Send it in pennies.

 

[TheInvincibleMustard]

Originally posted by: her209
Send it in pennies.

Damn! Seeing as how pennies weigh about 2.5g each, you'd have a package weighing approximately 60,000g ... or about 132.25lbs. Going rate for a package that size at the USPS doesn't exist, because USPS stops at 70lbs ... you're looking at about $70 to ship it FedEx Ground ... man, that would be awesome to do sometime!

 

[boyRacer]

wow $240 minimum... how much do you owe?

 

[StageLeft]

Originally posted by: dartworth
you can make 10 payments of $24 if you want. just get it all in by the due date...

Yep, this just makes so much sense that I wouldn't bother calling them. Surely they don't care the format of the payments.

 

[djheater]

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

 

[Zorro]

Originally posted by: bR
wow $240 minimum... how much do you owe?

WERD

 

[StageLeft]

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I would cut the card up if I were you and continue to make those payments, and more, until the bad boy is paid off. Credit cards are not the devil, but they bring out the devil in a lot of people!

 

[dartworth]

Originally posted by: Skoorb

Originally posted by: dartworth
you can make 10 payments of $24 if you want. just get it all in by the due date...

Yep, this just makes so much sense that I wouldn't bother calling them. Surely they don't care the format of the payments.

don't call me surely...

 

[djheater]

Originally posted by: Skoorb

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I would cut the card up if I were you and continue to make those payments, and more, until the bad boy is paid off. Credit cards are not the devil, but they bring out the devil in a lot of people!

Well the story is that the CC company sent me a check with a low rate/lifetime of the balance" offer. Within a couple of weeks the Transmission dropped out of my 92 toyota corolla. We had a third child on the way and our other car is a '98 Neon, so I bought a 2000 Caravan with the check from the CC

The way I look at it a $240 car payment isn't that bad.

 

[StageLeft]

Originally posted by: djheater

Originally posted by: Skoorb

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I would cut the card up if I were you and continue to make those payments, and more, until the bad boy is paid off. Credit cards are not the devil, but they bring out the devil in a lot of people!

Well the story is that the CC company sent me a check with a low rate/lifetime of the balance" offer. Within a couple of weeks the Transmission dropped out of my 92 toyota corolla. We had a third child on the way and our other car is a '98 Neon, so I bought a 2000 Caravan with the check from the CC

The way I look at it a $240 car payment isn't that bad.

5% as an interest rate on a used car is not bad. It's better than I get on one of mine. I've even used cash advances to buy a couple of cheap cars, but I pay the card off soon after. Credit cards can be nice and helpful at times!

 

[djheater]

Originally posted by: Skoorb

Originally posted by: djheater

Originally posted by: Skoorb

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I would cut the card up if I were you and continue to make those payments, and more, until the bad boy is paid off. Credit cards are not the devil, but they bring out the devil in a lot of people!

Well the story is that the CC company sent me a check with a low rate/lifetime of the balance" offer. Within a couple of weeks the Transmission dropped out of my 92 toyota corolla. We had a third child on the way and our other car is a '98 Neon, so I bought a 2000 Caravan with the check from the CC

The way I look at it a $240 car payment isn't that bad.

5% as an interest rate on a used car is not bad. It's better than I get on one of mine. I've even used cash advances to buy a couple of cheap cars, but I pay the card off soon after. Credit cards can be nice and helpful at times!

I'll pay about a grand down on it when I get my return, which I have to file but I can't find the bedamned receipt for the Corolla donation ... That should lower the monthly a bit.

It's actually less than $240 but I NEVER pay the minimum on a credit card, always a little more.

 

[RossMAN]

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

Does your bank offer online banking?

If they do, most offer RE-OCCURING PAYMENTS as an option. Some even have mad crazy frequency options like every day, once a week, every 2 weeks, 1st of the month, last day of the month, once a year, etc.

Check with your local bank.

 

[Vic]

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I'm sorry, but that's not correct. The monthly payments on revolving debt have absolutely nothing to do with the interest rate, nor are they arbitrary, nor are they hoping you'll miss a payment. Instead, the payments are based on a percentage of the total balance owed. Industry standard is that the payment is 2.5% of balance (with a $20-$25 minimum).
$9500 * 2.5% = $237.50
<edit>This is why most people never pay off their CC debt. As the balance goes down, so does the minimum payment. Unless you pay more than the minimum, you will never pay it off. The current $240/mo. will pay off the balance in full in 44 months.</edit>

To be blunt, it sounds like you need to manage your finances a little better. All the creditor wants is that you pay the minimum payment required by the due date. Why would you break that up when you could simply save the amount you need for a couple of paychecks and then make a single full payment on time?

 

[djheater]

Originally posted by: Vic

Originally posted by: djheater

Originally posted by: bR
wow $240 minimum... how much do you owe?

$9500 at 5%... they get you with the rate and then pump up your minimum, hoping you'll fvck up.

Stupid First Visa won't let me do a recurring payment and won't let me schedule a payment further than 90 days in the future.

They're REALLY hoping I'll miss a payment so they can bump up my rate. :|

I'm sorry, but that's not correct. The monthly payments on revolving debt have absolutely nothing to do with the interest rate, nor are they arbitrary, nor are they hoping you'll miss a payment. Instead, the payments are based on a percentage of the total balance owed. Industry standard is that the payment is 2.5% of balance (with a $20-$25 minimum).
$9500 * 2.5% = $237.50
<edit>This is why most people never pay off their CC debt. As the balance goes down, so does the minimum payment. Unless you pay more than the minimum, you will never pay it off. The current $240/mo. will pay off the balance in full in 44 months.</edit>

To be blunt, it sounds like you need to manage your finances a little better. All the creditor wants is that you pay the minimum payment required by the due date. Why would you break that up when you could simply save the amount you need for a couple of paychecks and then make a single full payment on time?

1)The monthly payments on revolving credit absolutely do have to do with the interest rate when that interest rate is promotional and dependant on not missing a payment.

2)I appreciate the information about the industry standard. I was unaware of that. I will as I said in my reply to Skoorb continue to pay more than the minimum. My intention was to continue paying the $240 for the life of the debt. Which is as you pointed out 44 months if I continue my current payment.

3)As to why I would break up the payment? I get payed twice a month and as the sole source of income for a family of 5 with all the emergencies and catastrophies that seemingly occur on a monthly basis if not more frequently, I find it a little more manageable to have $120 taken out twice a month rather than $240 once.

So I ask you: Why should it matter how or when I pay it off, as long as it's payed off by the date due?

ps - Thanks Rossman, I'll look into it.

 

[kyparrish]

:beer: for the sole breadwinner of a big family :thumbsup: