<prompt> Human: This is my first major loan and I just noticed that interest accrues per diem I dont know what I was expecting otherwise; call me naive Anyway, does that mean I would pay less in interest if I paid more frequently, say every friday? Do I misunderstand, or does it not matter? Thanks for your help. Assistant: It would make a very small difference if you paid at the beginning of the month instead of close to the due date. But past that, paying down more on the principal would see better return than timing your loans.If its a loan for less than 4 APR, Id consider putting the extra cash flow into an IRA, though.Human: I was planning on paying extra every month, payment is 311, Im comfortable with 500 though plus applying my yearly tax refunds to the loan. according to a car loan calculator, I could pay off the loan like 18 months early. I was just wondering if making, say, four 125 payments a month instead of one 500 payment would make any difference.  <response>: It would only be minuscule. Also, you would get a greater return by paying the full 500 early in the statement period as opposed to later, too.But in the long run, it might only save you 1-2 figures in interest, and maybe not even that.If you want to get technical, 