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Should you make extra payments on line of credit? |
Should you make extra payments on line of credit? not necessarily extra payments, but .... anything you pay over the minimum payment, all comes off of principle. I've built up an excellent credit rating doing that. Also it saves you interest. I presume you mean extra payments to the lender? If you can afford it, it makes sense. You're probably making regular interest payments on what you still owe. So the extra payments you make back will lower future interest payments. But it's really up to you. You need to decide if the reduction in interest payments is enough to offset the amount of money you won't be able to spend on anything else. Any amount above and beyond the required minimum within the billing cycle will be applied to principle thus reducing your balance quicker than if you just paid the minimum. Go for it! Wells Fargo collections department for 8+ years sure you should if you have the extra noney . it will bring your balance down and cut down on interest fees |
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