Biweekly Payments: How They Work

biweekly payments

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”.

pay button

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:

upgrade for payments

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).

enable payments

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:

payments modal.jpg

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.

I hope this helps you make sense of how biweekly payments work and how you can benefit from them. As always, please feel free to send an email to any time you have questions!

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  • I actually just wrote a large chapter in a book about this. It is amazing how big of a different just changing your payment frequency can be.

    • Shannon_ReadyForZero

      It really is truly amazing Glen – how tweaking something just a little bit can have such a powerful impact. What’s your book and when is it coming out?

  • This is an awesome new feature Shannon. I used bi-monthly payments to pay off my credit cards faster as it coincided with my pay periods.

    • Shannon_ReadyForZero

      Thanks for commenting Grayson! That’s great to hear that you found success using this on credit cards and it certainly is a lot easier when it does coincide with pay periods.

  • Heather Andrews

    I just scheduled as many bi-weekly payments as I could on my loan’s website, coinciding with my paydays. Excited to try this, thanks for turning me on to it!

    • Shannon_ReadyForZero

      You’re very welcome Heather and I’m so glad this helped! Please keep us posted on how it goes for you :).

  • Angie P

    RFZ doesn’t recognize my credit union where my savings and checking is located. I wish I could do this, it sounds great!

    • Shannon_ReadyForZero

      Hi Angie, can you email us at We may be able to help you out.

  • Nickolas Baker

    I have a question. Are you making the minimum payment every two weeks or are the payments smaller than the minimum payment?

    • Hi Nickolas, the idea is that you’d split your minimum monthly payment into two and pay that amount every two weeks. That way it “feels” like you are making the same payment, but in fact you’re paying a little more because over the course of the year you’ll make 26 biweekly payments (equal to 13 monthly payments) instead of 12 monthly payments.

      • Nickolas Baker

        How does this reflect on your credit score if you are making two payments below the minimum? or does it not matter unless you meet the minimum payment total before the payment due date?

        • Exactly. Since you’ll make the payments before the due date, you shouldn’t have to worry about any late payments. However, it’s always a good idea to check with your lender to make sure you’re on the same page and that the payments will be applied as you expect.

  • A

    Alternatively, set up biweekly (or other smaller-but-more-frequent) payments through your Bill Pay service of choice, and leave autopay on as a failsafe.

    For example, I have my regular bank send a check every two weeks to my credit card company. This way, my average daily balance is brought down, I’m making that “extra” payment over the course of the year, and I’m making a smallish (but still above minimum!) payment every payday. Just in case there is some sort of error or the checks come late, etc., I am still signed up through my credit card company to automatically pay the minimum online just before the due date. I’ll never have a late payment!

    • Oh, good idea! Yeah, setting up those extra payments automatically helps in many ways – for peace of mind, in addition to getting out of debt faster. Keep up the good work!

  • Darren

    Am I wrong, or would this also save money on fixed-rate loans, and not just because of the extra payment? If you pay mid-month, then aren’t you paying interest on a smaller (if only slightly so) amount each time you make a payment?

    • Shannon_ReadyForZero

      Hi Darren – it depends on how your lender compounds your interest. If compounded daily (like credit cards), then paying early in the month does help. If compounded monthly, when you pay in the month (as long as before the due date) shouldn’t make much difference in the interest charged.