Jump to content

Bills funds...
Into offset/pay with cc or regular account?


  • Please log in to reply
2 replies to this topic

#1 Bearynice

Posted 05 January 2013 - 03:53 PM

We currently do a direct debit each week into a usaver account. It is specifically for bills payments. I am wondering if we should be adding these funds into our regular mortgage payment ( thus increasing our offse acc temporarily) and then transferring out for bills payments?
Or I know people use cc for everything and then pay from mortgage. Would you benefit much in terms of interest saving for this? Many points etc for use of cc?
System currently is pay goes into everyday acc.tranfer goes to bills. Mortgage goes (and extra for offset). I withdraw weekly cash for food/petrol / "pocket money".

Any ideas on what would work best for us?

#2 Julie3Girls

Posted 05 January 2013 - 04:32 PM

Putting everything into your offset is going to be better - lower interest while the money is in there.
Paying by credit card, (and paying off the credit card completely on the due date), again, leaves money in your offset account longer, reducing your interest.

BUT .... it really depends on what your financial situation is, and how good you are with your money.

A lot of people struggle with the credit card option. Using cash, you have cash in your hand, and can see what you are spending. Credit card, not so much, so people are more inclined to overspend.

Same with the bills really - shifting money to another account regularly, yes, you loose the benefit of having it in your offset account, but having it there in the offset makes it easier to spend, and it can be easy to blow the budget and not have enough left to cover the bills when they come in.

Personally, we put everything in the offset. Bills come out of there. Most purchases are on credit card, paid off in full every month. But our spending habits are pretty good, and the system works for us.


#3 Veryclucky

Posted 05 January 2013 - 04:39 PM

We are with Suncorp for our mortgage and accounts. They offer the option of a main offset account (transaction account with card) and then up to 9 sub accounts that are also offsets.

So we have our pay go into the main account and then automatic transfers to the other accounts (eg. bills, house maintainance, personal pocket money, holidays etc). We are able to rename the accounts so we can keep track of them.

We then use the CC for everything possible and pay it off at the end of the month. This means an extra few thousand sitting in the offset through the month and we don't pay interest as we pay the CC monthly.

Some bills are paid directly out of the bills account to avoid extra charges but others are paid on CC then we transfer that money onto the card from that account.

We currently receive several thousand points a month through QANTAS frequent flyers by using our CC all the time. These will be used for Bunnings or Big W vouchers etc which then save us more money in the long run.




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

'My mum doesn't seem that interested in my baby'

Q: My mother and I have always been close, but now that I have a baby, she has not helped out as much as I thought she would.

This mum has donated over 2,000 litres of breast milk

The mother-of-two was diagnosed with hyper-lactation.

New guidelines: "Bottle-feeding mums need support too"

Breast is best, but mums who can't, or choose not to breastfeed need support too.

Call to teach kids about breastfeeding at school

The aim is to increase breastfeeding rates and reduce stigma.

Dads also struggle to 'have it all', study finds

Men and women both experience work-family conflict.

'Working for nothing': Childcare crisis pushes Sydney parents to the brink

Most parents are experiencing substantial difficulties with the financial burden and lack of availability of childcare, as costs have more than doubled for some families in just over a decade.

Language development may start in the womb

Study found babies can recognise foreign languages before birth.

Paying $2.50 for a babycino? This is why...

Aren't babycinos just a bit of froth? Not so, it seems...

I'm a stay-at-home mum who's an awful housewife

"Hey, come here a second," my mum said as she replaced the book in my hands with a wooden spoon covered in what I prayed was red sauce. Together, we walked into the kitchen and hovered over the skillet like we were peering into a crystal ball. Looking into my future, I saw me eating a lot of take away.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

From our network

Five things you need to know about flu and pregnancy

As the 2017 flu season begins in earnest, here?s what you need to know to protect yourself and baby.

Mum tips to keep your pre-baby budget in check

Money might be funny in a rich man's world (or so ABBA told us), but for the rest of us it's a major consideration – particularly before having a baby.

5 easy ways to make your maternity leave last longer

Maternity leave is a special time for you, your partner and your new little bundle. The last thing you want is for financial worries to stand in the way of that joy.

10 ways to keep your 'buying for baby' costs down

Becoming a parent is full of surprises – not least of all finding out that, for such small beings, babies cause a lot of chaos and expense.

5 ways to prepare to go from two incomes to one

Here are some ideas for getting that budget in shape, ready for being a one income family.

 

Baby Names

Need some ideas?

See what names are trending this year.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.