paying down debt by the penny how essential is that non essential

June 21st, 2007

Paying down debt by the penny – how essential is that non-essential?

I am a fan of making multiple snowflake payments every month instead of saving up for one big payment.  I do make one big payment a month that includes my total minimum payment plus an extra snowflake amount, but I frequently send in (via online banking) little bitty payments when I save money on something or get unexpected money or sell something.  I frittered my way into debt, and I am going to fritter my way out.  :)   It is also a reason I love online banking so much – I can send a little payment once a day, once every two days, once a week…. whatever I want.

I love to buy little “extra” things at the grocery store.  It is probably my biggest budget buster.  So now, when I want to stray from the list of things we need, I say to myself “If I can afford $X.XX for this, I can afford to send an equal amount to our debt”.  So if whatever it is is SO important to me I am willing to essentially pay out twice the cash in order to have it, I buy it (with cash) and then when I get home I send an equal amount of money to our credit card.

So once in a while I get a treat but my debt goes down a bit at the same time.  I will beat down the credit card a penny at a time!

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18 Responses to “Paying down debt by the penny – how essential is that non-essential?”

  1. Oh I like that. I tend to make the once a month payment and then save up for a big extra payment. Maybe I should just get the money out of my hands before it is gone! :)

  2. Wow, what a terrific idea! I like your statement – “I frittered my way into debt, and I am going to fritter my way out.”

    One of my cc’s actually made a rule that you can only pay online once every 5 days. I’m sooooo ready to be done with them.

    Great post! :)

  3. My cc has a rule like that but it is once every 24 hours not 5 days. 5 days! Mean cc.

    Not that they aren’t *all* mean ;)

  4. Brilliant but simple idea !
    Only just realised that the quicker I pay the CC bill the less daily interest, couple that with your fritter payment idea it will be like a hammer and nail situation.
    Thanks !

  5. Oo I just started doing that too! Every little bit I can squeeze out of my budget not including my actual official minimum payments, I immediately allocate towards debt… even if it’s only $10.

  6. It really does work! Glad the idea is gaining momentum :)

  7. Paying extra everymonth is great. Because my credit card debts are at 0% interest, I have opted to instead save the money on an online account and pay at the end of the month. That way I’ve earned a little more money that month.

  8. One of my credit card’s allows only FOUR payments in a month’s time!

  9. Steve in W MA Says:

    March 31st, 2010 at 5:04 am

    Wow. There seems to be a big misunderstanding here in the comments. To wit: the credit card company won’t let you originate more than 4 (or whatever) payments to your account per month from their online website, but you can send as many as you want by originating them not from their website but from your own online checking account. If you want to send in a bunch of little payments, as you get the money, to knock the giant down, definitely go ahead!

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