8K on Salary Package Credit Card - Best way to use it.

LNew recruit on 08/10/2022 - 12:38

Hi Folks, I have recently accrued about 8K on a salary packaging credit card after being made redundant from work (wanted to minimise tax - so they paid my Annual leave also through the credit card otherwise this would be taxed).

(Note: the credit card will be cancel in a month time and the remaining money will be return to my employer, then taxed and return to me - which I find not a great outcome)

I dont really need anything fancy/ very expensive atm - no mortgage also.

What are your suggestions to use the funds efficiently & appropriately please?

Financial Credit Card

Comments

  • pao2x on 08/10/2022 - 12:51
    +4

    gift cards (fuel, groceries, gifts), holiday/airfares, tax if owing

    buy some expensive stuff in costco, refund with another card.

  • holdenmg on 08/10/2022 - 12:51
    +1

    Hi,

    Have a look a the App "Liven" https://www.liven.love/ mentioned in the thread:
    https://www.ozbargain.com.au/node/682744

    You can use the OzB referral link @
    https://www.ozbargain.com.au/node/711066

    Look @ buying "Foodollars"
    https://help.liven.com.au/en/articles/5453733-foodollar-faqs

  • jezzster on 08/10/2022 - 12:54
    +7

    You could pre-pay your health insurance for a year (if you have it). You could also look at purchasing some high value gift cards for places you regularly shop like supermarkets.

  • gstfree on 08/10/2022 - 13:31
    +2

    Split the amount to Prepay city council fees, health insurance, Coles/Woolies gift cards, school fees.

  • TheMindsetTraveller on 08/10/2022 - 13:32
    +4

    prepay your health insurance, council rates, car insurance, utility bills … easy $8k

  • websterp on 08/10/2022 - 14:31
    +1

    You can be the proud owner of an Euro Prestige - https://www.carsales.com.au/cars/details/2003-bmw-x5-d-e53-a…
    Has only done a miserly 300K. This would also be a real motivator for you to find a new job before the first service is due.

  • resubaehtgnolhcs on 08/10/2022 - 14:38
    +2

    hookers and coke?

    • Eeples on 08/10/2022 - 17:33
      +1

      And then just squander the rest of it.

    • dust on 09/10/2022 - 12:42

      Which places take credit card for coke?

    • Sinnerator on 10/10/2022 - 10:07

      it's 2022, so it should be hookers with cock.

      <don't do sober>

  • AndyC1 on 08/10/2022 - 15:10

    Check out your insurance for the following and see if you can pay for another year starting now:
    - Health
    - car
    - contents

    Buy a new laptop.
    Prepay your internet RSP if you can for a year.
    Pay your tax bill for last year if you have any.
    BPay money into your electricity supplier.
    BPay money into your REA for a month or two if you are renting.
    BPAY money into the body corporate if you own a place.
    Hire cleaners and gardeners and painters if you own a house to do work instead of doign it yourself.
    Buy gift cards, but watch out as they can be hacked.

  • hasher22 on 08/10/2022 - 17:06
    +1

    Maybe this would work correct me if I am wrong. Could the credit card let you cash out all or a certain amount with a cash out fee being capped?

  • cookie2 on 08/10/2022 - 17:39

    Could you pay your credit card bill with it? And then just stay in the positive? Otherwise if you need to buy objects, consider giftcards or if you can buy things for others and offer a 5% discount.

    • Eeples on 08/10/2022 - 17:43
      +2

      The conditions might be something like this… So I guess they couldn't overpay a credit card (if they wanted to play by the rules).

      What can I use it for?
      You can use the card to purchase goods and services at any outlet in Australia that has EFTPOS available, over the telephone or internet and at outlets overseas where Mastercard is accepted.

      You can use it for everyday expenses such as:

      groceries
      petrol
      restaurant and café meals
      travel or booking a holiday
      gas, electricity and telephone bills
      council and water rates
      theatre and movie tickets
      clothes.

      What can’t I use my card for?
      You cannot use the card for the:

      Mortgage and personal loan repayments
      Credit card bill payments
      Withdrawing money from an ATM or when paying for items at an Electronic Banking Terminal
      Setting up recurring direct debit or direct credit payments
      Money transfers, money orders, cheques, etc, and
      Transactions relating to any form of gambling or gambling services.

      • cookie2 on 08/10/2022 - 22:55

        I wonder if OP could just overpay their water bill, just before the card is due to be cancelled.

  • Pelicannn on 08/10/2022 - 18:39

    Book a holiday with free cancellation in a years time. After you cancel the card ask to refund and say the card you used to pay for it is cancelled and get a refund through other means.

  • Wiadro on 08/10/2022 - 21:11

    buy crypto stable coin on the card, then withdrawal it

    • dust on 09/10/2022 - 12:44

      But then what would OP do with ~6.5k cash?

  • Peachout on 09/10/2022 - 09:07
    +1

    You can also voluntarily pay extra tax to the ATO (you can set it up directly with them). Then at the end of the financial year you get it back as a lump sum when you do your tax return.

  • loveyou3000 on 10/10/2022 - 22:50

    In your situation, I would pre-pay any upcoming bills, and maybe buy the christmas presents early (if you celebrate).

    After running out of things to pre=purchase/pay, I would just buy a bunch of prepaid eftops/credit cards (especially if on sale like this week at woolies x10 bonus points) and just use this for my everyday spending until it dries up (even if I end up paying a few bucks in activation fees).

    Your other option is to buy an expensive item(s) and return a few minutes/days later onto another card (YMMV as some stores require to be refunded on same card, while others just same tender ie. - if bought on a cc, just has to be returned onto any cc).

    Otherwise… happy to help you spend up the card :). Good luck!! :)

  • Ozzster on 10/10/2022 - 23:17
    +1

    Buy the riskiest shares. If you lose, claim tax return from ATO. If you win, you win a lot.

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