Wednesday, January 24, 2007

This Makes No Sense

Recently I transferred over one of my loan balances on to a zero
percent interest credit card. It was a card that I already had so it
didn't hurt my credit too bad so that was not an issue. And now that
it is over there, I am paying no interest until May of this year. And
it is likely that I will transfer it again before the time runs out.
And with only paying a 75$ transfer fee, I am still ahead by like 400
bucks when it is all said and done.

Here is where it gets dumb though. I realize that I am still paying
interest on other debt and even though I am paying zero percent on
this loan, I am still thinking about working hard to pay it off.
However, it makes no sense, strictly speaking, to do that right now
because there is no interest on this debt.

I know that many other people work out zero percent deals and parlay
that free money into interest income but I don't have the money right
now to do that. I just wonder if it makes any kind of sense to work on
my other debts and just pay the minimum on this one while I can since
it is at zero percent.

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