The Eisenson Method refers to the notion of paying off debts more quickly and is credited to former banker Marc Eisenson. Instead of making regular monthly payments on your debts, pay half of your monthly minimum or whatever your goal is to pay each month every 14 days. Over the course of a year, you will have made two extra payments. Repeat the half payments on the two-week schedule until the balance is paid.
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Definition: Eisenson Method
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This only works if you don't have a set total amount you can pay each month. For example, if you pay $50 a month minimum, you only have $600 total for the year you can pay. But at $25 every two weeks, you'd be short $50 for the year, because $25 x 26 is $650, not the original $600 you had to spend on repayment.
1I do this with my mortgage. That way it gets paid quicker. But I agree with what rannew is trying to say. If you can only afford to put $50 a month to your debt, you cannot afford those months where it takes out extra.
2I am working that into paying off my debts. Slowly but surely everything will be peachy:)
3I have started using this method with a major loan debt as well as my car loan. I had been paying $500 once a month towards a personal loan, as well as $310 for my car. The problem was that when it came time to pay the bills, I didn't have $810 in my account and that led to some obvious problems. The past two months I've been paying 50% as soon as I get my paycheck - sending a check for $250 for the loan and withdrawing $150 cash to go towards the car payment. I've been able to keep much better track of my money this way, and I know my bills are always getting paid!
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