If it's not one thing holding me up with my Mortgage Free Challenge - it's another!!

Hiya All

Another week and another reason why my Mortgage Free Challenge is being compromised!! Last week I was telling you about our new additions (they've had far too many treats bought for them in the last week but that's another story and one I'll worry about when my Tesco Credit Card Bill comes through!)

Ok, so what's my excuse this week? Well, in a much earlier post (all the way back in November!), I told you about a holiday I'd booked. Now the problem with booking holidays is that eventually, you have to pay for them. Well where has the time gone because at the weekend I received a letter stating that the balance has to be paid by 2nd March. Oh why does February have to be such a short month? I always feel like the beginning of March creeps up on me without me realising.

Right, so the last 4 months have just whizzed by and now I have to establish how I'm going to pay for this holiday.

I have 2 options:

1) Pay on my Debit Card, pay no fees and be safe in the knowledge that the job's done - the holiday's paid for.

2) Pay on my Tesco Credit Card, pay a 2.5% handling fee, worry about the fact that as much as it appears the holiday's paid for, it isn't really as I've just borrowed off Peter to pay Paul (and paid an extra 2.5% for the privilege!)

So guys, which payment option did I choose? Those of you who have been following my blog will answer with no hesitation. I paid on the Tesco Credit Card of course!! So why am I prepared to pay a 2.5% handling fee when I already have the money saved up to pay for the holiday? Surely option 1 is the much more attractive option?

Well, the reason I chose to pay the 2.5% handling fee and pay on my Tesco Credit Card is because of Tesco points. By paying for the holiday on my Tesco Credit Card, I will earn Tesco Points which I can then convert into deals and cash in 4 times as much in financial terms. Working out how much I will pay in fees and comparing this with how much I will receive in Tesco Deals, I am a good £20 up. No argument then!

Also, as I already have the money saved up, not only will I earn another months worth of Interest (not that that amounts to much in the present, economical climate) but I won't really be sat there worrying about where the money's coming from!!

I'm going to keep my fingers crossed that I can get back on track with my Mortgage Free Challenge but I won't be holding my breath!! So lets see how the next week pans out - here's hoping it's a good 'un!!

Px