How To Pay Your Loan Off FAST!
My Property Investment Tip #31
Method 4 of 7. Pay your bills at the last safe moment.
Now to understand this one, you need to read the last 3 tips where you will have come to understand that a big part of these strategies is keeping YOUR money sitting against your loan as long as possible in order to reduce interest charges, and thus increase the principal amount that pays down the mortgage.
In the previous tip we discussed the merits of paying for everything with an interest free card and then clearing the card the day before it incurs interest. This is so that we can keep our money sitting against the mortgage for up to 55 days longer.
Well then, if Telstra will give us 4 weeks to pay our phone bill, when should we pay it?
That’s right, the day it is due. No sooner.
And then, what do you pay it with? Your interest free card.
So get a month out of Telstra and then a month out of Visa, and let your money sit on your mortgage for two months longer than it would have if you just paid the Bill directly straight away.
It’s a simple principle to apply across the board.
Just keep an eye on your credit card charges if there are any, because if they are excessive, they may negate the benefit received by doing this strategy.
Some companies charge extra if you pay by credit card, but whichever way you go, you should still only pay it on the due date. No sooner.
Now if you like to be organised, remember with online banking you can actually select the date you want the payment to go out the door. So you can still be efficient and process your bills the moment you get them, but set the payment date to be the due date, not straight away.
I hope you’re all enjoying these tips!
Let me know which ones you’ve implemented so far!
– Daimo
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Daimien Patterson is the CEO of Integrity Property Investment, a property investment company based in Australia. He regularly produces books, blogs and videos on the topic of property investing, helping thousands of people create financial security and freedom through education and property investment. Get started today.
