I have heard of this credit card strategy and wanted to know if it really works.  Instead of paying one monthly payment on or before the due date, you take the same amount and divide it into to two payments and pay your credit card payment twice in the same month.  Somehow, this is suppose to lower the amount of interest you would be paying on this card.  Please let me know of any feed back you have regarding this strategy.

 I can't see how it would help to do it that way for credit cards. If you pay as much as you can as soon as you can, you'll save on interest, because interest is compounded daily. If you wait, you're adding interest to the balance. 

Did you understand my question?  I am not talking about waiting to make a payment.  I was talking about paying the same amount, but dividing it up into 2 payments.  But, I think you actually answered my question.  Knowing that the credit card companies compound interest daily in the answer I needed.  It would make sense to pay your payment twice a month because for example:  If your bill is due on the 30th and pay $100 each month.  If you pay $50 on the 10th and then pay another $50 on the 20th.  The balance on your credit card was reduced from your the payment you made on the 10th, therefore, you would owe less interest because your balance is lower by the time you make the next payment on the 20th.  Over time that could add up.  What do you think?

I think that's true but I think even better if you can pay the $100 on the 10th.  The more balance you carry, the  more interest you pay.  You are right that they compound the interest daily.

I pay my bill as early as possible (as soon as we get the paycheck that the bills come out of).  When I have extra money, I pay it asap, I don't keep it until the next payment is due.  Saves a little interest and makes sure the money goes to that debt as planned.

It might only be a little bit but those interest amounts do add up!

Tina, I see the reasoning behind dividing the payments that way and it makes sense to me.  However, I would check with the individual credit card companies to see what the terms of the cardholder agreement says.  I would imagine most do compound interest daily as, after all, they're in it to make as much money as possible.  If you have say $100 to make a payment with- do it all at once as early as possible; that's the best option.  But if you don't have the entire $100 but can pay $50 as early as possible then do that as well as another $50 on the due date.  Hope that makes sense. 

Tina Morgan:

Did you understand my question?

Yes, I understood your question. My answer was and is, that it makes no sense to do it in two payments if you can do it in one, as early as possible.