But only 1 payment can be delayed. The rest can be at most 30 days from the first one. You only get two extra weeks one time, and the rest is still every month just with a different pay date.Let's assume you earn interest in your savings bank account. The total additional time you're earning interest is 14 days (the delay per payment) x 12 payments, each year.There seems to be little gain by delaying payments by say, two weeks. That simply shifts equal payments by two weeks each, meaning that the only "interest gain" one would have from delaying the payments in this way is the amount of interest on the initial payment for two weeks. Not enough for me to bother calculating given the length of time I intend to keep the house. As always, I would be happy if someone can point out a hole in my logic.
So savings is not just on the initial, it's on every single payment that's delayed.
Normal payment plan on due date = 30 days between payments.
Delayed payment plan by two weeks = 44 days first time and then 30 days between every other one.
It's the same nonsense as the "early payday" perk from banks. Sure the first time you get paid 2 days early. After that it's still every 2 weeks only now it's on Wednesday instead of Friday.
Statistics: Posted by the_wiki — Thu Aug 22, 2024 9:30 pm — Replies 36 — Views 3405