I have a 55 day interest free credit card. I buy EVERYTHING on it. My wages
stay in the bank till the day before payday each month. I then go into Netbank
and pay off the credit card. I never pay interest on it. My money stays in the
bank longer, so is getting more interest.
If your home loan isn't already attached to a particular credit card, then
choose a credit card with a good and useful loyalty points program.
We try to put as much of our expenditure as we can on our Visa and pay it
off every month so that there is never any interest. Every few months we
convert the points to Myer vouchers (which are sometimes worth a couple of
hundred dollars) which in turn saves on other shopping and presents etc
Never use credit to pay for a holiday or a consumer item such as a stereo
unless you have a plan to pay the debt off before interest charges start to
bite. Typical personal finance type loans can see you paying double the cost
of the item over three years.