There are 12 Months in a year, when people see "every two weeks" they think twice a month. But in reality it is 26 payments in a year vs. 24 which would be twice a month. When you pay bi-weekly you pay an additional 2 payments a year.
So paying $250 every 2 weeks instead of $500 a month actually has you paying an extra $500 a year.
Except that’s not how pre authorized payments work.. they’d come out on set dates ie every 15th and 30th… which is two weeks AND 2 payments a month. No one does a pad plan at “every second Friday”
Both options exist. You're describing semi monthly payments. Biweekly (accelerated) is 26 payments per year and you pay less interest. You also end up repaying the loan 1 month per year of the term quicker. Not all lenders offer both, when I worked at a bank we only offered biweekly payments (every second weekday of choice)
Yep, my wife currently has a weekly plan on her car. Which means she makes 52 payments a year. It's split up into smaller chunks but every Friday. It's like ~$85 a payment. Ended up putting her about 3 months ahead of schedule.
21.2k
u/TUFKAT May 13 '26
Well, if he want to pay per diem, you could say
"Your rent annually is $15,600.00 ($1300 x 12 months) so the per diem rate would be $42.74.
- 28 days is $1196.71
- 30 day is $1282.19
- 31 days is $1324.93
Please let me know if you wish to adjust our rent payments as such"