Money Confidence Budgeting Tip

Posted by Simon Dehne on January 28, 2014 in Latest News with No Comments

A great budgeting idea is to use your credit card to manage your money, earn reward points on your credit card and save interest on your home loan which all means paying off your loan sooner.

A common myth among many people is that living off your credit card is dangerous and will only lead to financial ruin – not so!

The system is simple:

  1. Get a credit card that earns reward points e.g. Westpac Altitude Card
  2. Your home loan needs to have a redraw facility
  3. Work out you monthly or fortnightly living expenses. This is important, because to manage your money, you need to set a limit for each pay cycle that you cannot exceed on your credit card limit.
  4. When you get your pay, deposit your pay into your home loan. This deposit will save you interest until your next pay cycle.
  5. Pay your bills etc. using your credit card, but you need to make sure you do not exceed your set monthly credit limit for your expenses.
  6. When you get your credit card bill, transfer funds from your home loan each month to clear your credit card.
  7. Budgeting, you will soon learn if your cost of living is exceeding your budget, because you will be over your limit.


  • Save interest on your home loan.
  • Earn points on your credit card that can be converted into gift vouchers etc. annually e.g. covers for all the Christmas presents etc.
  • Forces you to set a budget and see how you are tracking each month.
  • Helps you pay off your loan much quicker, by using your salary to help reduce the loan and by using the free credit available from your credit card

By finding the RIGHT loan for your needs makes a big difference in meeting your goals. Interest rate is important, but the features of a loan and finding the write bank who can help you manage your money better is just as important.

Need to know more, let us know and we will be pleased to help.

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