We have a balance on a credit card due to an unexpected bill that we are working very hard to pay off, and it will be gone by June.
My question is this. We have an annual bill that is due on January 1 that will cost $1100.00. We have that cash set aside for it.
I was thinking though, if I took the $1100 and paid it off the credit card now we would save on a little interest but of course I'd have to charge the $1100 bill when it comes due. In the end the credit card will still be paid off by June and we'd also gain the rewards $ for using the credit card to pay the bill.
We are very disciplined tracking every cent and I've no doubt that we will pay off the card, so I am not worried about back sliding or anything.
The cash is earning nothing in our bank account waiting to pay that bill and so perhaps it could save us a tiny bit in interest on the credit card until it's due as well as earn us the rewards$$.
In this same way, what about paying monthly utility bills with a credit card to earn the cash back rewards?
We obviously don't have the 30 day no interest grace period right now because we are carrying a balance, but I was thinking if I paid the amount of the utility bills off of our credit card with the cash that I would use to pay the bill with on the day before I pay the actual bill and then charge it to the credit card (no fee to pay with credit card by our utilities), our daily balance should never rise higher then it would be and we'd earn the rewards $.
Is there anything i"m missing with either of these ideas?