A loan that has a biweekly payment schedule

With biweekly payments, you end up paying the equivalent of 13 monthly payments per year. That one extra payment allows you to pay off a loan faster and save money in interest - up to a few thousand dollars. The downsides are that lenders or a third party collection agency charge a $300 to $500 fee to set up the biweekly payment schedule. And, in some months, you end up paying 3 times a month – on the 1st, 15th and 29th. You can achieve the same results yourself, simply by making extra monthly payments.