Paying off balance in full each month

leicsmarkyr

PROLIANT wrote: »

We are talking about £1.15 after tax on every £1000 balance in your account, unless you are wealthy and hold a substantial balance in your account then you will make very little profit, and most banks with an offer of high interest on their accounts cap the balance at around £2500 so anything over this you lose out as the interest drops to 0.1% AER.

True but every penny helps in today's world. :j

YorkshireBoy

leicsmarkyr wrote: »

Why dont you make your bills come out a bit later and earn a bit more interest?

I had this set up long before I started stoozing.

My bills account (where my salary is also paid) pays 0.1% AER, and the linked savings account pays around 4% AER. Putting the payments back would mean I had to make additional transfers each month (and I might forget!).

Putting my mortgage payment back (if I had a mortgage anymore) would mean I incurred unnecessary interest. And after all, most people's mortgage payment will be the single most expensive bill (and, I would imagine, be more than utilities and Council Tax put together?).

My finances are complicated enough (thanks to MSE and the 20+ DD's each month), without introducing more work.

It works for me.

True but every penny helps in today's world.

The trouble is though, in watching the pennies there's the real danger you take your eye off the pounds.

PROLIANT

leicsmarkyr wrote: »

True but every penny helps in today's world. :j

I agree, that is why I spend less in the supermarket and on my utilities, I set a weekly shopping budget and typically save anywhere between £5 - £10 per week, same with the gas, electric and phone, so in a month if I budget say £160 for shopping, £80 for Gas Electric, £30 for cable service, £45 for mobile contract and I save £40 on shopping, £10 on gas electric, cable stays the same always and £5 on my mobile then I have made £55 in a month, more than any high interest savings will ever give.

~Chameleon~

I guess it's horses for courses and everyone has a different method for budgeting and managing their finances. I just prefer to hold onto every penny I've got until the moment I need to part with it. Better in my pocket than theirs

~Chameleon~

PROLIANT wrote: »

I agree, that is why I spend less in the supermarket and on my utilities, I set a weekly shopping budget and typically save anywhere between £5 - £10 per week, same with the gas, electric and phone, so in a month if I budget say £160 for shopping, £80 for Gas Electric, £30 for cable service, £45 for mobile contract and I save £40 on shopping, £10 on gas electric, cable stays the same always and £5 on my mobile then I have made £55 in a month, more than any high interest savings will ever give.

I also do all that as well thanks to MSE :money:

YorkshireBoy

~Chameleon~ wrote: »

I guess it's horses for courses and everyone has a different method for budgeting and managing their finances.

That's the key Chameleon.

I think Proliant's (and also my) point is to do with cost/benefit and effort/reward.

In short, there are bigger fish to fry.

DestroyingAngel_2

My advice would be to set up a DD with the credit card company you have your card with, and not a Standing Order with your bank. Your statements are calculated from the day you opened your cc account, and if you set up a DD it would take the money on the right day so it clears in time.

Also, if you set up a DD with the cc company, when you close your account, you can then cancel the DD directly with them at the same time. If you have a SO with your bank and you don't tell the cc company you're closing your account and stopping the SO, the cc company will still call for a payment and when that payment doesn't come through, you'd get slapped with a late fee AND a Returned Payment Fee, PLUS interest! So, to keep it simple, do everything with just one company.

EXPAT_2

When paying off my credit card I do the following;

If my total outstanding is for example £10,000, & the amount required to be paid in that month is £3,000 to avoid interest, I pay the £3k rolling over the remaining 7k.

The only real benefit is that I pay no interest & I keep my available cash at the ready should I need it.

Credit card companies will NEVER make money 'directly' from me..EVER