The $20 Extra Rule
A tiny fixed add-on that works because it’s scheduled
What if the shift from “stuck” to “done” isn’t a bigger payment, but a smaller one that always lands on the right day? The $20 Extra Rule is about timing, not strain.
When a fixed extra shows up predictably, two things happen at once: the math moves and the habit sticks.
Turn a goal into dates
Pick the outcome, finish sooner or pay less interest, and give it a day you’ll keep. Choose a single, recurring date (the 12th, last Friday, or the day after payday).
Dates remove debate: you’re not deciding whether to pay extra, only where it lands in your month.
Let statements and paydays do the lifting
Most models read the statement balance (the snapshot), not what you pay on the due date.
Posting your extra before the statement closes can lower what’s reported next month.
Placing the extra right after payday keeps “cash in before cash out” and prevents end-of-month drift.
Same dollars, better placement.
Why small still matters (quick math)
Example: a $2,000 balance at 24% APR. A $20 pre-statement extra each month isn’t huge, but it shortens timeline and trims interest because more of every later payment hits principal.
If that $20 also nudges a high-utilization card under a key band (90% → 70% → 50% → 30%), you may get an additional score benefit from the lower snapshot.
One action per week keeps momentum
Week | One action | Goal |
1 | $20 extra on your set date | Start the streak |
2 | Check highest-utilization card; tiny top-off if it crosses 90→70→50→30% | Better “photo” |
3 | Pre-statement payment on next card to report | Lower snapshot |
4 | Note next month’s statement dates | Stay ahead |
Review so the rule fits your life
At month-end, ask one question: did the extra land on its date?
If not, reschedule, don’t delete.
If $20 feels tight, make it $10.
If it was easy, try $25.
The rule should adapt to your real month, not the other way around.
10-Minute Checklist
Choose a fixed extra (e.g., $20) and assign a specific monthly date.
Place it before your statement or right after payday.
Mark Week 1 = extra, Week 2 = utilization check, Week 3 = micro-payment, Week 4 = look-ahead.
Note the highest-utilization card for any small threshold push.
Add a month-end review reminder to adjust the amount/date as needed.
Bottom Line
Small wins stack when they have a date.
A scheduled $20 turns good intent into visible motion, lowers what gets seen on statements, and builds a streak you can trust.
You don’t need a bigger push, you need a rhythm your month can keep.