Ramsey County

Making $ense of Dollars and Cents

January 26, 2009

Small but Mighty

          If you or teenagers you know are on-line video game players, you may have heard of the term, “micropayments”.   Micropayments for on-line games or on-line music sites refers to making small payments to purchase an upgrade during a game or purchase a single music download.  The player or purchaser has an established credit line with a gift card or credit card as the source of funds.  Now “micropayments” is being used in reference to the many credit cards Americans have and use frequently.

          Many consumers have found that making many, small payments on their credit card debt get their out of debt quickly and fairly effortlessly.   

          It is easier to make micro payments at the same time you receive a paycheck than to wait for the opportunity to make a single, large cash payment once a month. By making a small payment with each pay check you can have better control of your cash flow.

          For years, home owners have found that with micropayments they can pay off their home mortgage sooner. By paying half of their mortgage payment every two weeks, instead of twice a month, mortgage holders work 26 payments instead of 24 into their budgets.  Making several small credit card payments has the same effect – the grand total you pay is more

          Small payments reinforce good financial habits.  When consumers see their credit card balance drop slowly but surely, they feel more in control of their finances because, Surprise!, they are. 

          Be aware though, of any conditions your credit card may have on how often you may make payments.  Some companies limit the number of transactions, including payments; you can have in one month.

          To prevent their web sites from being overwhelmed, several credit card companies also limit the number of online payments consumers may make within 24 hours or have requirements that the payment must be at least the minimum amount owed.  Check your credit card terms of usage, (usually included with each month’s billing statement) for more details on how to make many, but mighty payments.  

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524 4th Ave NE #5, 2nd Floor Ramsey County Courthouse
Devils Lake  ND  58301
701-662-7027
email - NDSU.Ramsey.Extension@ndsu.edu