Using a credit card saves over $5000

Jenny earns a net monthly salary of $4091.72 and opts to link her interest-free credit card with her home loan. On payday all her salary goes into her mortgage offset account. She uses her credit card to pay for her everyday living expenses, paying it off before the interest-free period ends.

Monthly living expenses total $2000. Compared with just making minimum repayments on her home loan, Jenny saves more than $5000 in interest by handling her affairs this way. Savings would still be achieved if Jenny kept her salary in an offset account and drew on this for everyday expenses, but they wouldn’t be as great when compared with using her credit card for everyday costs and leaving her full pay in the offset account until she needs to repay her card.

Source: No extra repayments are made into the offset account. Monthly expenses and the repayment equal Jenny’s salary. Credit card used has at least 45 interest-free days on purchases. All expenses are paid on the first day of the month.


Magazines Review offers you a broad range of popular American magazines online. Browse an extensive directory of magazines, covering most important aspects of your life. Find the most recent issues of your favourite magazine, or check out the oldest ones.

About content

All the articles are taken from the official magazine websites and other open web resources.

Please send your complains and suggestions through our feedback form. Thank you.