If you pay your credit card in full every month, the card charges you 0%. If you pay your utilities by autopay from checking, that costs 0% too. So why would anyone pay those bills from a line of credit charging 6.25%? A viewer made that argument in a long, careful comment on one of my Dynamic Banking videos, which teach running your paycheck through a line of credit, and it's a good objection. His plan was to put the paycheck in checking, pay the bills from there, and send whatever is left to the line of credit.
There's nothing wrong with doing it his way. The bills get paid either way. The difference is what the money does while it waits.
Say $5,000 lands in checking on the first of the month, and the credit card bill isn't due until the 10th. For those ten days, the money actually earns close to nothing at most banks. Now put that same $5,000 on a line of credit that's carrying a balance. For those same ten days, it lowers the balance you're paying interest on. The bill still gets paid on the 10th. The money did a second job before it left.
With other debt in the picture, say that on the first of the month, before payday, you move a $5,000 chunk from the line of credit to a credit card charging 22%. A chunk means a lump sum you move from the line of credit onto another debt. That card now owes $5,000 less, so its interest drops right away. The next day your paycheck lands on the line of credit and brings its balance back to zero. Then the balance climbs as you pay bills through the month. If the big bill doesn't hit until the 10th, you paid no interest on the line of credit for those ten days. Interest on $5,000 at 6.25% for the other twenty days comes to about $17. Meanwhile, the 22% card carries $5,000 less for good.
A real month is messier than that example. Your bills land on different days, and most months you're offsetting somewhere around $20 to $40 of interest just by changing where the paycheck waits. That isn't exciting. It happens every month, though, and every dollar of it goes toward the debt, which moves the next chunk up. Paycheck parking: the starter move walks through a month like that.
What if you have no debt at all? Then the line of credit becomes a way to grow money instead of paying down debt. On the first of the month, you draw $5,000 and pay it into a cash value life insurance policy as extra premium, and your paycheck pays the line of credit back the next day. The money is in the policy instead of sitting in checking, and the line of credit balance sits near zero for most of the month. You still pay a little interest as bills pull the balance back up, but whatever you save by parking the paycheck ends up in the policy. Dynamic Banking after the mortgage is gone covers that stage.
You can still automate your bills. I pay bills automatically from my line of credit, the same way you'd set up autopay from checking. Ask your lender whether bills can be paid straight from the line of credit, or whether you'll need a same-day transfer to checking first, because lenders handle it differently.
The viewer's comment and my full reply are in a video on why not just use a checking account, with the numbers for all three cases. His way works. It just leaves the money idle for part of every month.
Try it for one month before you decide. Put the paycheck on the line of credit, pay the bills from it on their normal dates, and compare that month's interest charge to the month before.