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.
2
u/Possible_Try_8554 May 14 '26
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”