This tip helps you save on interest when you have credit card debt. Credit card interest is typically compounded daily, which means that interest is calculated on your outstanding balance each day. By splitting your monthly payment into two smaller payments, you reduce the average daily balance, which in turn lowers the amount of interest that accumulates.
Here’s how it works:
By doing this, you’re essentially chipping away at your credit card debt a bit faster and minimizing the interest that accumulates. It’s a simple yet effective way to save money on interest charges and pay off your credit card debt more efficiently.