If you’re someone who gets paid bi-weekly, you may be wondering how many payments you made in 2016.
Well, we’ve got the answer for you!
If you’re short on time, here’s a quick answer to your question: You made 26 bi-weekly payments in 2016.
But if you’re interested in learning more about bi-weekly payments and how they work, keep reading!
What are bi-weekly payments?
Bi-weekly payments refer to a payment schedule where payments are made every two weeks. This payment schedule is common for mortgages, car loans, and other types of loans where payments are made over a long period of time.
Compared to monthly payments, bi-weekly payments result in 26 payments a year (52 weeks divided by 2), which is equivalent to 13 monthly payments. This results in the borrower making an extra payment each year, which can help reduce the total interest paid over the life of the loan.
|Payment Schedule||Number of Payments per Year||Total Payments over 30 Years|
As shown in the table above, bi-weekly payments result in a higher number of payments over the life of the loan, but can potentially save the borrower money in the long run due to the extra payment made each year.
Advantages of bi-weekly payments
Bi-weekly payments can be a smart financial move for those looking to pay off debt and save money. Here are three advantages of making bi-weekly payments:
- Faster debt repayment: By making payments every two weeks instead of once a month, you end up making 26 half-payments in a year instead of 12 full payments. This means you end up making an extra payment each year, which can significantly reduce the amount of time it takes to pay off your debt.
- Lower interest payments: Because you’re making payments more frequently, you end up accruing less interest over time. This can save you money in the long run and help you pay off your debt faster.
- Extra payment per year: As mentioned earlier, making bi-weekly payments means you end up making an extra payment each year. This can be especially helpful for those who have a fixed income and want to budget their expenses accordingly.
How to set up bi-weekly payments
Bi-weekly payments can help you pay off your mortgage faster and save thousands of dollars in interest over the life of your loan. Here are the steps to set up bi-weekly payments:
Contacting Your Lender
The first step is to contact your lender to see if they allow bi-weekly payments. Some lenders may charge a fee for this service, so be sure to ask about any fees associated with setting up bi-weekly payments. If your lender allows bi-weekly payments, they will provide you with instructions on how to set it up.
Calculating Your Payments
Before setting up bi-weekly payments, you need to calculate the amount of each payment. To do this, take your monthly mortgage payment and divide it by two. Then, add that amount to your regular monthly payment. For example, if your monthly mortgage payment is $1,200, your bi-weekly payment would be $600 + $600 = $1,200.
Pro Tip: Use a mortgage calculator to see how much you can save by making bi-weekly payments.
Setting Up Automatic Payments
Once you have calculated your bi-weekly payment amount and confirmed with your lender that they allow bi-weekly payments, you can set up automatic payments. You can either set up automatic payments through your lender or through your bank’s bill pay service.
Pro Tip: Be sure to double-check that your payments are being applied correctly and that your loan balance is decreasing as expected. If you notice any issues, contact your lender immediately.
How many bi-weekly payments in a year?
If you’re paid bi-weekly, you may wonder how many paychecks you’ll receive in a year. To calculate the number of bi-weekly payments in a year, simply divide the number of weeks in a year by two. There are 52 weeks in a year, which means you’ll receive 26 bi-weekly payments.
For example, if you earn $1,500 every two weeks, you’ll make a total of $39,000 ($1,500 x 26) in a year.
In 2016, there were 27 bi-weekly pay periods for those who received their first paycheck on January 1st. This is because 2016 was a leap year and had 366 days instead of 365. The extra day caused an additional pay period for those who were paid bi-weekly.
It’s important to note that bi-weekly payments are different from semi-monthly payments. Semi-monthly payments are made twice a month on specific dates, whereas bi-weekly payments are made every two weeks, regardless of the date. This means that the number of payments you receive in a year may be different depending on your payment schedule.
Comparison with other payment schedules:
|Payment Schedule||Number of Payments in a Year|
As you can see, bi-weekly payments result in 26 paychecks per year, which is more than semi-monthly payments but less than weekly payments. It’s important to understand how your payment schedule affects your budget and financial planning.
To learn more about managing your finances and budgeting, check out resources such as Mint and Dave Ramsey.
In conclusion, bi-weekly payments are a great way to speed up debt repayment and save money on interest payments.
By making an extra payment per year, you can pay off your debt faster and reduce the amount of interest you’ll pay over time.
And now you know that you made 26 bi-weekly payments in 2016!
So if you’re not already on a bi-weekly payment schedule, consider making the switch and start enjoying the benefits today.