Seconded
We have friends who save their money in a poxy account paying about 2%, but won't use the money to pay off the mortgage they're paying over 5% on. Doesn't make sense to me.

Also, use credit. Use credit cards to make small regular payments and pay them off before any interest accrues. Do anything you can to improve your credit rating. This way, if you ever do need to use credit properly it will cost you a huge amount less. The system punishes good payers who never use credit. If you have never taken out any credit and pay every bill up front with the money you've earned you'll be dead in the water when you need a mortgage or any opther form of credit.
(robbersdog, Wed 16 Nov 2011, 7:08, 1 reply)

Out of curiosity
any idea if zero percent credit deals have the same effect?

I'm a whore for those, I see little downside. My bike and car are on zero percent deals.
(username failed moderation, Wed 16 Nov 2011, 9:30, closed)