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If your credit card has a 16% interest rate and prepay that debt every dollar you prepay effectively earn 16%.if your debt is carrying a 6% rate your prepayment dollars effectively earn 6%. When you factor in how compounding works you end up saving the percentage rate you are being charged. But with a credit card all of the savings comes at the end in the form of not having to pay out the remaining years of the loan.
In addition to putting every dollar you can toward your monthly credit card payment, consider paying half of your bill every other week. What you are doing is actually making twenty six semimonthly payments, or thirteen annual payments. If you are already adding an extra one twelfth to each monthly payment, which is an another way of adding in a thirteenth payment per year you will be adding a second thirteenth payment per year, you will be adding a second thirteenth payment which should cut your loan term virtually in half. Because credit card companies are required to credit your account shortly after they receive your funds, making two payments each month will boost your prepayments and when you are fighting to pay down your debt as quickly as possible, you need every advantage you can get.