This is a good way to pay your CC off faster?

Question

Now say you have a 5000 dollar CC Balance and you trying to pay it off. Say you have 600 bucks to throw at it every month. I think Instead of making your payment 600 every month which makes it susceptible to the Interest Rate, Keep your payment around the minimum payment which is like 50 dollars and then also transfer 550 every month from your checking account. I think the minimum payment of 50 and transfer of 550 every month works better cause the 550 does not get caught in the Interest Rate. Am I right or what is the right version of my story??????

Professor Wonderful · Accepted Answer

You certainly have the correct idea.

If my clients were as competent as you, I could retire.

Continue to make the minimal payment separate from any other payment.  Make the $550 payment via a separate check.  Mark that second check "Repayment of principal".

All funds from the second check will reduce the corpus owed.

The interest is inevitable.  You will be paying that no matter what you ethically do.  

You are so correct in your thinking that I want you to take an "A" for the day.

Now, move to the head of the class.

This is a good way to pay your CC off faster?

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