Have you heard about our newest feature release? We now offer Biweekly Payments, enabling you to save up to thousands of dollars in interest on your accounts and take years off the life of your loans. Read on to find out how this works!
One Extra Payment Per Year
When you set up biweekly payments, you’re creating a plan in which you pay half of your monthly payment every other week. By doing this, you’re making a total of 26 payments biweekly (or 13 full payments) each year, as opposed to 12 full payments each year. That’s one extra payment per year! This can have a huge impact on your total debt payoff. All you have to do is set up biweekly payments through ReadyForZero and let these recurring payments withdraw automatically.
Savings Due to Lower Average Daily Balance
This is not as relevant if you’re paying off a fixed-rate mortgage or student loan. But if you’re utilizing biweekly payments to pay off credit card debt or any loan that charges interest on your average daily balance, then you’ll save even more money. Since you’re effectively lowering your average daily balance by making these payments early, then the interest charged will be on a smaller amount – allowing you to pay less.
How You Can Set This Up
1.) Activate Biweekly Payments on ReadyForZero
All you have to do is login, go to the payments tab, and click on “Pay”.
You’ll then be taken to a page where you can upgrade to PLUS Credit or PLUS, which will allow you to schedule payments from ReadyForZero:
Once you’ve upgraded, go back to the accounts page and enable your accounts for payments. You can do this by clicking on the green button called “enable payments” for all accounts you wish to make payments on (biweekly or otherwise).
Once your accounts are enabled for payments, return to the payments page and click on the pay button again. Then a modal will pop up that looks like this:
Just follow the steps from there and you’ll be all set up! For biweekly payments, you only have to set them up once as they’ll go through automatically after that. And if you ever want to double-check when your payments will withdraw and post, just go to your payments page to see what’s pending under “scheduled using ReadyForZero”.
There are two important things to keep in mind when setting up biweekly (or monthly) payments on ReadyForZero):
- If your minimum payment changes, you will need to change your payments to reflect that – this will not happen automatically.
- When your account is paid off, go to the payments page and cancel the recurring series (otherwise, payments will continue to be sent to that account).
2.) When Do You Get Paid
How often and when do you get paid? You’ll want to make sure you know exactly when you’ll have enough money in your account to cover each biweekly payment when it’s withdrawn.
3.) Find Out When Your Due Date Is
Before you make the final decision on when your biweekly payments should be sent, make sure that you’ll have the second payment paid before or on the due date for that bill. All your biweekly payments must arrive before the due date. For example, let’s say you have a bill due on February 5. Your first payment would need to be withdrawn by January 22 so the second one will be withdrawn on February 5 – thus ensuring the whole bill will be paid on time.
4.) Turn Off Autopay (OPTIONAL STEP)
If your lender has setup automatic payments, you need to make sure you have this turned off. Once everything is setup, you can turn off automatic payments for the month that your first biweekly payments are scheduled for. Now just sit back and save.