Quote:
Originally Posted by Xist
Someone suggested paying all of your expenses with your credit card while your actual money earns interest, and then paying off your credit card each month right before the due date.
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My brother has a mortgage account (believe they started in Australia) where the balance in his bank account is offset against his mortgage, It is called an Offset Mortgage I believe. So he leaves money in his account, it is subtracted from his mortgage debt, he pays literally everything with his credit card, then pays the card off before the due date.
If you have a £100,000 mortgage and £20,000 in linked savings via an offsetting arrangement, you’ll only pay interest on £80,000. This means you could pay off your mortgage more quickly.