Debt

Automate the minimum, then add more

On-time minimums protect you from late fees. Extra payments are what shorten the debt.

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Set the minimum payment to leave automatically so a busy week cannot create a late fee. Some lenders reduce the rate slightly if you pay this way. Then add a second payment, even a small one, aimed at the balance you are attacking. Check that extra payments reduce principal and do not only advance the next due date.

Use your own institution’s cash machines when you can. A few dollars in fees each week is a quiet annual cost, often more than 100 if it happens weekly. That money is better as an extra debt payment.

Start this week

Turn on automatic minimums for one account, and schedule a separate extra payment for the day after payday.