Would you spend? To reduce debt?

[Deleted User]

I know that it sounds really stupid!

BUT, I was thinking that I should be spending on my credit card to save the interest.

This is what I mean;

If I pay my monthly bills with my credit card and then pay the full amount that I have just paid out back to the card (instead of just paying the bills) I will then save myself 30 ish days interest for that amount of money.

Is this something that I should be doing, as you can see I am trying my very best to shift this debt quickly and have now started to look at new ways to save anything that I can.

Thanks in advance!

Toomuchdebt

Ok call me stupid but I can't see how this would help?After all the interest on the debt already on the card would continue to accrue regardless of new spending wouldn't it?You wouldn't get the whole lot interest free for 30 days just because you spent more on there.

Eonel

It works if you use a credit card with zero balance. Spend on it all month and then pay it off in full when you get the statement. No interest payable & you kept the cash for a month.

pelirocco

Eonel wrote: »

It works if you use a credit card with zero balance. Spend on it all month and then pay it off in full when you get the statement. No interest payable & you kept the cash for a month.

This is what I do , but surely it doesnt matter if the card isnt 0% , if you pay it off in full every month ?

flippin36

If you are disciplined and organised then I think its a good idea. Just make sure you don't overspend otherwise it may cost you in interest. When interest rates were higher we used to put everything on a 0% card and put the sum each month into a savings account. When the 0% was up we paid it off in full. But you have to be careful because its so tempting to dip into this fund as it gets bigger.

We prefer cashback credit cards for our day to day expenses now. My 5% for 3 months with cap1 is coming to an end and I have earned £100. We paid it all off in full each month.

pelirocco

flippin36 wrote: »

If you are disciplined and organised then I think its a good idea. Just make sure you don't overspend otherwise it may cost you in interest. When interest rates were higher we used to put everything on a 0% card and put the sum each month into a savings account. When the 0% was up we paid it off in full. But you have to be careful because its so tempting to dip into this fund as it gets bigger.

We prefer cashback credit cards for our day to day expenses now. My 5% for 3 months with cap1 is coming to an end and I have earned £100. We paid it all off in full each month.

I agree you have to be disciplined , and I use a cash back 0% card , I

jon1965

Yes it would work but not on any of the cards you have listed in your signature UNLESS they are 0% APR . I think that sums up what everyone is saying.

If you have a card with 0 balance then yes it works regardless of the interest rate but ONLY if you pay it off before the due date. Even underpaying by 1p will cause interest on the whole balance from the day the charges occured

JimmyTheWig

pelirocco wrote: »

This is what I do , but surely it doesnt matter if the card isnt 0% , if you pay it off in full every month ?

They didn't say they needed a 0% card, just a card with zero balance.
I.e. you get interest free credit if you pay the bill in full every month. You can't do that, by definition, with a card that already has a balance.

JimmyTheWig

Also, OP. You talk about paying bills on your credit card.
Do you mean like council tax, electricity, etc?
Many companies like this won't accept credit card payments, or will charge extra for them.

[If you meant bills like petrol and the supermarket, then that's fine subject to all the above comments.]

pelirocco

JimmyTheWig wrote: »

They didn't say they needed a 0% card, just a card with zero balance.
I.e. you get interest free credit if you pay the bill in full every month. You can't do that, by definition, with a card that already has a balance.

I think we all know that? , I assumed the op did too lol

although i am slightly puzzled by the title of the thread , after all by putting your normal spends on a credit card you arent spending any more ?

pelirocco

pelirocco wrote: »

I think we all know that? , I assumed the op did too lol

although i am slightly puzzled by the title of the thread , after all by putting your normal spends on a credit card you arent spending any more ?

re read OP post ( ie read it properly ! )

Op , as you already owe on your credit cards , unless you pay more then you spend ( inc interest) you wont be saving anything