Using credit cards to pay off part or even all of your outstanding home loan balance could make perfect financial sense according to one expert.
A spokesperson for one of the UK’s leading debt advice charities has suggested that using cards to pay off a sizeable chunk of persons home loan can save thousands if circumstances permit.
For example, If an individual were committed to a particular loan plan whose interest was “X” and was then able obtain a credit card with an interest rate that was less than “X”, using the balance of the card to reduce the balance of the mortgage could actually be quite a savvy move.
He further commented that a surprisingly large chunk of homebuyers have used their cards in this way and stated that certain card providers do offer products whose gross interest rate is considerably less than that of a number of popular loan plans.
In addition, a recent study compiled by a reputable public sector analytics firm revealed that vast numbers of British homeowners were using their credit cards to pay off their mortgage. However, it has also been revealed that a great number of the aforementioned are merely covering their monthly repayments, opposed to vastly reducing their balance and are effectively robbing Peter to pay Paul.
