Multiple mini payments add up!

Day 4 of NCN’s 33 Days and 33 Ways to Reduce Debt Challenge is about Extra Payments Extra Deposits. Basically it boils down to making more than one payment a month, be it to your savings account or snowflaking to debt.

Any of the regular (or even casual) readers of this blog know that I am a HUGE fan and practitioner of the mini payment concept. As *soon* as I get money that is earmarked for snowflaking (surveys, selling things, unexpected gifts) off it goes to the credit card. The very moment it hits my bank account it is bounced off to the credit card. Very very often if one was to look at my bank statement online there will be what I call matching payments. There will be a deposit for an amount (like $10.69) then the very next line is an online payment to Capital One for the exact same amount. This will have to be altered slightly as I change to Citibank that only allows 4 payments per billing cycle, but I aim to make it a weekly event instead of an instant event with a similar effect.

To illustrate this in action and the power of making these mini payments, I’ll dissect my last billing cycle with Capital One . My minimum payment due was $117. I made one large payment, that included my $117 minimum payment, of $323.01. So $206.01 of that was over and above the minimum. But that’s not all. In addition to that snowflake, I made payments in the amounts of $55.54, $23.62, $4.28, $3.00, and $12.00 over the course of the billing cycle for a grand total in payments of $421.45, the total amount over the minimum being $304.45. Without making those extra mini-payments, I would have missed out on reducing my principal by close to $100. That’s a lot of money to me! I could have saved them all up for one big snowflake but something might have happened to make me spend some of it before it got to the credit card. You may think that it isn’t worth it to make a $2 or a $4 payment but it really is. Every little bit adds up.

All these extra instantaneous mini payments are really helping me get out of debt faster than I ever thought possible. Seeing my debt total creep downwards really keeps me focused and motivated. I recommend everyone try it! I like the big payments too of course but I like the multiple mini concept as well. I intend to employ a similar tactic when saving is my primary goal, and I hope I get great results!


  1. Mya Says:

    September 2nd, 2007 at 2:56 pm

    Great example of capitalizing off every little bit of income. You’re an inspiration to me to NOT tell myself, well it’s “JUST” $10 that I’m spending..

  2. paidtwice Says:

    September 2nd, 2007 at 4:56 pm

    I have had a lot of those “It’s just $10….” discussions. lol.

    Thanks for stopping in!!

  3. Lisa Says:

    September 2nd, 2007 at 8:07 pm

    I just found your blog today and you have really made me think about where my money is going. After reading your blog I realized I have no idea. Thank you

  4. paidtwice Says:

    September 2nd, 2007 at 8:14 pm

    Thanks for stopping by! I had no idea for a whole long time too.

  5. cooking4two Says:

    September 11th, 2007 at 9:36 am

    Way to go! I just found your blog and wow, what an inspiration you no likely are to many. We’ve employed a similar scenario to get my husband’s car paid off (our only debt) and it works like a charm! Keep pissing off those creditors (they hate us for doing this, you know!) and keep fighting the good fight against consumer debt!

  6. paidtwice Says:

    September 11th, 2007 at 9:00 pm

    Thanks! Keep fighting the fight!

  7. Danielle Says:

    October 3rd, 2007 at 1:38 pm

    What a great idea! I do a lot of little things for side $$ and I totally want to do this- I want DH’s student loan debt GONE!

  8. Kimberley Says:

    October 10th, 2007 at 3:16 pm

    My credit cards also limit the number of times you could make payments on their sites. However, I found that by making the payment from my bank’s site (ING) I can send as many payments as I want, as often as I want. Just thought I would share my work-around to keep you on track!

  9. paidtwice Says:

    October 10th, 2007 at 10:17 pm

    That’s a good idea! I was worried they would just start rejecting my payments from my bank but I guess they really can’t do that… lol

  10. seaar2000 Says:

    November 3rd, 2007 at 6:53 am

    Some of my friends think I am nuts putting more than the minimum on my payments and putting a little bit here and there on my car payment each month, but I am happy to say I am eight months ahead on my car payment.

  11. Steve in W MA Says:

    March 31st, 2010 at 5:14 am

    Those small dollar amounts that are so easy to fritter away on unimportant purchases are great for applying to important goals like debt reduction and savings! “Out of sight, out of mind” is a good maxim and getting that spare money out of sight by sending in to your bill or to your separate savings account is a fantastic way to maximize the use of it.