Why Use a Bi-Weekly Payment Schedule?
There are 52 weeks in a year, which means there are 26 bi-weekly periods. If you make a half-payment every two weeks, you end up making 13 full payments per year instead of the 12 payments you would make on a monthly schedule.
This extra annual payment is applied directly to your principal balance, reducing the amount of interest you pay over the life of the loan and shortening your repayment period.
Key Benefits
The primary benefits of a bi-weekly payment schedule include significant interest savings and a faster path to debt freedom. Many borrowers also find it easier to budget for smaller, more frequent payments that align with their bi-weekly paychecks.