Gymbal

Need a bit of help with this one....
Wife and I have flexible mortgage (current account type). I suggested we use credit cards to pay all household bills food, purchases etc. Then pay off by dd full monthly balance of ccat end of interest free period.

I think we are saving one months interest on the food etc say £1000 at 5% (mortage) divided by 12?

But do we save this amount every month or just the first month we do it?

My head hurts.......

douglasb

Sounds like it would work as long as the mortgage interest is calculated on a daily basis (which it probably is on a current account mortgage).

By paying the living expenses on the credit card and paying it off at the end of the month, you are reducing the daily outstanding balance by up to £1000 (or whatever that month's figure is). I think that to get the most advantage, the monthly payment date on the credit card should be just after your salary is in the account. You will also need to pay the credit card bill in full every month so as not to incur any interest payments, but if it's just being used for normal expenses rather than luxuries, it's money that you'd be paying out over the course of the month anyway.

On the figures you mention, it's worth less than £4 per month. While that will help, it's not going to pay the mortgage off 15 years early

My head's starting to hurt too!

Doug

All Talk

The other advantage is that you get 0.5% cashback on the purchases (on lots of cards e.g.egg). Again not worth a lot but I get £100 back each year for doing nothing - which was nice !!