Round-Ups Paid to Credit Card

Hello,

Thinking about the Round-Ups function and how handy it is, I thought it would be a good idea to set the function to pay things like credit cards with the Round-Ups.

I have a credit card and I think having my Round-Ups paid to it would help to pay it off quicker.

Is this something that others would benefit from if implemented too?

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Hopefully with the upcoming integration with AMEX and hopefully other credit cards this could become reality. Good idea.

Monzo pays a small fee for every Faster Payments transaction so I imagine they wouldnā€™t be too excited about this.

Must be almost just as easy to pay your card with the money in your pot once a month or so?

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Yeah would be better maybe to send it to a locked pot that unlocks on the day of your credit card statement each month and then sends it then.

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Thatā€™s true depending on the type of payment method used, as it doesnā€™t have to be faster payment.

Plus, when doing bulk payments thereā€™s usually a small fee for this which would mean that if Monzo distributed funds saved in round-ups per person, they could send a bulk payment out to the individualā€™s selected credit card, payee etc. every month.

Being a cashier, thereā€™s always ways around sending payments without having to pay fees so if Monzo adopts the idea, Iā€™m sure theyā€™d do it on the basis they have looked into how to avert paying large amounts in fees, if any fees at all :thinking::slightly_smiling_face:

The usefulness of having round ups in a pot is that you can use it to cover whatever you want once it builds up. Integrating any/all of those disparate uses directly into the app is something I donā€™t really see happening just because it reduces the flexibility and adds complexity to something that i donā€™t think really needs it.

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I see both perspectives here, but I wonder if thereā€™s an excellent compromise - automatically moving the contents of a pot to an external account on a set routine (daily, monthly etc).

On that basis, you could keep the roundups as they are, but set the contents of your round-up pot to pay off your credit card on a monthly basis.

Win win?

Could make a good IFTTT service if they ever get round to revisiting the services. Seems to have launched as a good thing then left to wither on the vine.

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Happy birthday Colin :birthday: :partying_face:

I believe there are more triggers planned, no idea what though

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I get where youā€™re coming from, but there are some people who would be tempted to withdraw from that pot before it goes towards debt/payees etc. which is why I threw the idea out there.

As for what Peter says, thatā€™s a good idea if the pot was locked and couldnā€™t be opened without having to make the request.

The point of integrating a feature like this is so you can toggle between saving or paying off debt. Trust me, Iā€™ve worked in insolvency for over 3 years and it would definitely help a lot of people in my view.

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OK, I wasnā€™t thinking of it as a ā€œwhisk the money away before you spend itā€ feature which is why I was seeing it differently to you I think.

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Thatā€™s along the lines I was thinking because, unfortunately, a lot of people fall into the pit of debt because they see money available and spend it without thinking (trust me Iā€™ve spoken to so many people who spend until their card declines) hence why Monzoā€™s features could help to train people, as well as adjusting their mindset to prevent them from falling into these pitfalls.

Some back of a fag packet calculationsā€¦

If someone has a starting balance of Ā£1000 on a standard credit card (representative APR 19.9%) and makes the minimum monthly payment after three years theyā€™ll have paid Ā£350 in interest and still owe almost Ā£300.

I average about Ā£20 a month spare change so Iā€™ve used that figure, applying that to the hypothetical credit card balance itā€™s paid off after 29 months and theyā€™ve paid Ā£140 less in interest. That Ā£580 in change has effectively become Ā£720, where else can someone get a guaranteed return of 24% over two and half years?

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