Hi there everyone...I'm wondering what's the best way to manage non-IP related bills.
I use my credit card to pay for everything so that I can keep the balance in my offset account as high as possible, but some companies charge a surcharge for paying by credit card. The surcharge is usually between 0.5 and 1 per cent.
I'm wondering if it's worth while paying that surcharge just so I can keep the balance in my offset account high. My reasoning is that if I use cash and not credit, my balance drops, and I end up paying 5.7% interest on a larger portion of my loan than if I didn't pay cash and kept my balance high.
But is that correct? Does it make sense that I cough up an average of 0.7% in surcharge fees just to keep the offset balance as high as possible for as long as possible?
Not forgetting these bills I'm paying are not related to the IP at all, they are things like electricity and gas bills for my private home.
Thanks so much for your help.
I use my credit card to pay for everything so that I can keep the balance in my offset account as high as possible, but some companies charge a surcharge for paying by credit card. The surcharge is usually between 0.5 and 1 per cent.
I'm wondering if it's worth while paying that surcharge just so I can keep the balance in my offset account high. My reasoning is that if I use cash and not credit, my balance drops, and I end up paying 5.7% interest on a larger portion of my loan than if I didn't pay cash and kept my balance high.
But is that correct? Does it make sense that I cough up an average of 0.7% in surcharge fees just to keep the offset balance as high as possible for as long as possible?
Not forgetting these bills I'm paying are not related to the IP at all, they are things like electricity and gas bills for my private home.
Thanks so much for your help.