How to Use a Credit Card to Pay Off Your Mortgage Faster

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Paying off your mortgage can bring a lot of benefits. You will find that you will not have to pay out as much interest and so it will save you money in the long term. You will also have more money each month that you could use to buy yourself things or to save or invest. The quicker you pay it off, the better.

There are many ways that you can pay off your mortgage. Obviously it is a large debt and so it is something that may take some time to pay off. However, one way of paying it back is by using a credit card. This can help in a selection of ways.

Cashback savings

When using a credit card, it can be possible to get cash back. There are certain cards that offer this and they can allow you to get some money back each month. These small savings can really add up and you can use the money that you gain, to pay off extra money from your mortgage each month. It is necessary to pay back the credit card balance in full if you want to take advantage of the cash back or else you will pay more in interest than you gain from the cash that you get back.

Interest free credit

All credit cards offer interest free credit. You can pay for items on them and you will not need to pay back what you owe until up to six weeks later. During this time period, it is wise to put the money you plan to make the repayment with in to a savings or investment account that has instant access. Then you can gain some interest on the money until you need to use it to pay the card. Again, this only works if you pay the outstanding monthly balance back in full each month.

Interest free credit card

You can find a credit card that will allow you to have interest free credit for a certain time period. This might be for balance transfers or for spending on the card. If you use a card like this, you can use the money that you would have spent on repayments, to pay back some of the mortgage. This can mean that you can pay the mortgage back early. However, it is important to make sure that you will have enough to pay the credit card back in full when the interest free period comes to an end or else you could end up paying higher interest than you would have done, had you kept the mortgage.

Borrowing the money

It is possible to use a credit card to borrow the money to pay back the mortgage. It can be a great feeling thinking that you could pay off the mortgage, but it is worth remembering that the interest on a credit card is likely to be a lot higher than a mortgage and so you should consider whether this is actually a good idea.

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