about smart payment plan
Most lenders use monthly payment schedules. That means you have to write large checks once a month to cover your loan payment. This is the traditional way for consumers to repay their loans, but SMART Payment Plan offers a new service that helps consumers save money while making smaller payments.
SMART Payment Plan’s Biweekly Payment Schedule
SMART Payment Plan helps consumers by approaching repayment from a different perspective. Employees typically get paid every two weeks, so why shouldn’t consumers be able to pay their debts on a biweekly schedule? This realization actually leads to several advantages for the consumer.
Smaller Payments with SMART Payment Plan’s Biweekly Payment Schedule
The first thing that SMART Payment Plan clients notice is that it is easier for them to afford biweekly half payments than whole payments on a monthly schedule. If you get paid every other week, then it can be hard to set aside money from the first month’s check to make your loan payment at the end of the month. SMART Payment Plan cuts individual payments in half by setting up a biweekly schedule. Most consumers find that this is much easier for them to afford than the traditional monthly payments.
SMART Payment Plan’s Biweekly Payment Schedule Means Paying Less Interest
Making smaller payments is a boon for most consumers, but they do not realize the added benefit of biweekly half payments until they have almost repaid their loans in full. When you make biweekly payments, you actually end up contributing more money towards your loan than if you use a monthly schedule. This happens because there are 52 weeks in the year, but only 12 months. When you divide 52 by two, you find that you will make 26 half payments each year (which equals 13 whole payments). When you use the traditional payment schedule, though, you only make 12 whole payments each year.
This means that using SMART Payment Plan’s biweekly payment schedule shortens the length of your loan’s term. You pay off the debt faster, which reduces the amount of interest that you have to pay on the loan. This can help you save tens of thousands of dollars, especially if you have a 30-year mortgage or a loan with high interest attached to it.
SMART Payment Plan is the Secure Way to Pay your Loans
SMART Payment Plan is not only the smart way to make your loan payments, it is also the secure way. SMART Payment Plan automatically transfers your half payment from your bank account every two weeks. These electronic payments are more secure than writing checks because there are multiple federal laws that regulate electronic banking. When you put a check in the mail, though, you have to trust that no one will steal the envelope and your personal information.
SMART Payment Plan also offers additional security by extending fraud protection guarantees. Few checking accounts offer fraud protection. With SMART Payment Plan, though, you can dispute any charge up to 90 days after it has been completed.
