You read that title correctly; the Nurse on Fire family just took advantage of an opportunity that is going to save us several hundred dollars…by taking on additional credit card debt! Say what?!?!
We made our semi-weekly post office run this past week and I was thumbing through the typical junk mail when I got to an envelope from one of our credit cards. I nearly tore it up because I knew it wasn’t a bill, as I keep track of it online. Thankfully, I opened it to find those lovely/tempting/seductive/dare-I-say-slutty? convenience checks! 0% interest until September 2017 with a 3% up-front charge.
Typically, I would shred those things faster than the Cubbies lose in the post-season. This time, however, I got to thinkin’…
We are currently working on paying off my wife’s student loans, which are both federal loans and private loans through Wells Fargo. The Wells Fargo loans are compounded daily at 5.75% interest. By utilizing one of these checks to pay off Wells Fargo, this is going to save us (by my calculations) $450 in interest over the next 18 months.
While putting those loans on the back-burner for a little while, we can begin funneling even more money towards her federal loans, targeting the higher-interest unsubsidized loans first, thereby saving us even MORE money in interest! #HappyDance
Sure, all we’re doing is moving our debt from one hand to the other. The 3% charge dips into the savings by a couple hundred bucks but I still call it a win if it saves us a few hundred more on top of that. All-in-all, I’m happy with this decision and am looking forward to getting the letter in the mail telling us that we no longer owe Wells Fargo any more money.
Smart decision? Dumb decision? We’ve already written the check and mailed it off, but I’m still curious as to what your honest opinion on the matter is. I know that credit card debt, no matter the reasoning, can be horrifying but, if you had the opportunity, would you do this? HAVE you done this? Let me know what you think in the comments below.
– Nurse on Fire