Pay Credit Card Bills Twice a Month

The Problem

You pay once a month. Interest compounds on the average daily balance all month long.

The Hack

Set up two payments per month — one mid-cycle and one before the due date. Or pay every time you get paid (biweekly).

Why It Works

Interest is calculated on your average daily balance, not the statement balance. By paying mid-cycle, you lower the average balance that interest compounds on.

Pro Tips

• Even if the total is the same, splitting into two payments saves money
• Aligns with biweekly paychecks naturally
• Lowers your reported utilization (checked at statement date)
• Set calendar reminders for the 1st and 15th