When you’re focused on paying down debt, small changes can lead to meaningful progress. One strategy worth considering is biweekly payments. It doesn’t require earning more or recalibrating your budget, but it can shorten your loan term and reduce the interest you pay over time.
As part of VyStar’s Debt Payoff Challenge, we are encouraging members to look for adjustments like this that can make debt payoff feel more achievable.
What Are Biweekly Payments, Exactly?
With biweekly payments, you pay half of your regular monthly payment every two weeks instead of making one full payment each month. Because there are 52 weeks in a year, this results in 26 half-payments — or 13 full payments annually — instead of 12.
Because biweekly payments reduce your balance earlier and more frequently, less interest accrues over time. As a result, a greater portion of what you pay goes toward principal, shortening your loan term. You can speak with a VyStar representative to better understand how biweekly or partial payments are applied.
Why One Extra Payment Makes a Difference
Interest is calculated based on how much you owe. When you reduce your balance faster, less interest accrues over time.
Example: Personal Loan
Let’s say Alex has:
Loan balance: $15,000
Interest rate: 8%
Term: 5 years (60 months)
Monthly payment: $304
If Alex sticks with monthly payments:
Total paid over 5 years: about $18,240
Total interest paid: about $3,240
If Alex switches to biweekly payments of $152:
One extra full payment each year
Loan paid off about 4-5 months earlier
Interest savings: about $350
That savings comes without changing Alex’s lifestyle, just the timing of payments.
Bigger Loans, Bigger Impact
The benefits of biweekly payments increase with longer loan terms and higher interest rates.
Example: Auto Loan Let’s now say Alex has a:
$30,000 auto loan
6% interest
Term: 6 years (72 months)
$497 monthly payment
By switching to biweekly payments of $248.50:
One extra full payment each year
Loan is paid off about 6 months sooner
Interest savings: about $600
That extra money can be redirected toward other debts, savings or everyday expenses.
Why Biweekly Payments Feel Easier
Biweekly payments align naturally with payroll schedules. Spreading payments across paychecks can feel more manageable than budgeting for one larger payment each month. Plus, automating more frequent payments can help reduce missed payments and improve consistency, which is critical when you’re working toward long-term financial goals.
Is Biweekly Right for You?
The examples above are meant to illustrate what’s possible when making biweekly payments. Timelines and savings are estimates based on fixed interest rates, consistent payments and standard loan amortization. Actual results may vary depending on factors such as daily interest accrual, fees or how additional payments are applied.
Paying off debt doesn’t always require big sacrifices. Sometimes, one extra payment a year can improve your timeline.