You pay 6% on 300000 K average outstanding balance for 30 days. 18000
If I pay 7 % on my money but I lower the outstanding balance to 250000 I can have a higher rate and lower my overall cost. 17500
End of story. If you don’t like the math don’t play the game. Go look up averge outstanding balance in a Finance textbook and then come post.
The whole premise of this program was to truly eliminate all other forms of credit. All monthly purchases go against the LOC. This would mean credit card debts, car payments, everything. So yes all cashflows need to be accouted for.
As for costs. If you don’t recognise opportunity cost uield positive or negative outcome, again pick up any basic finance or accounting texbook and they will cover that for you.
