Wednesday, January 24, 2007

Do you see a downside?

So, I read this article, and now I am thinking maybe I should try it.

Basically, if you have a home line of credit [which I do as one of my 'mortgages'], instead of putting your paycheck in the bank, you put it in to the line of credit account.

This line has credit card, and I can transfer money to pay my other bills.

The benefit is you pay down the line of credit quicker, as the money sitting in there not only pays down the credit amount, it reduces the payments because the interest is calculated on the remaining amount.

The only downside I see, is that technically, you are paying interest on your paycheck.

Any one else see any other downsides to doing this?


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