Saving Money with MORE Credit Card Debt?

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

20 thoughts on “Saving Money with MORE Credit Card Debt?

  1. I wouldn’t have done this, but I’m not saying what you did is wrong. I’m beginning to trust credit card companies less and less, so I’m trying to stay away from them. But I totally get why you do this. You’re saving some money and it feels amazing to be done with one creditor (Wells Fargo). I did this last fall with my wife’s student loan. We were set to pay it off at the end of December, but I paid it off three months early with money from savings. I then paid my savings back for three months. Just felt good to not pay Mohela for those three months!

    Liked by 1 person

    • Appreciate the honesty Ernie. There is certainly a psychological factor in play, having the debt in a different place, so I completely respect that. If we were having any concerns about paying it off, we wouldn’t have done it because peace of mind is more valuable than the savings. That being said, I’m over the friggin’ moon that I’m calling Wells Fargo, literally in about 30 minutes, to close the account. It’s a wonderful day! Have one yourself, sir 🙂

      Liked by 2 people

  2. As long as you have a plan in place for paying off the card before that cut-off date (making sure you are absolutely not going over!) then I say go for it. Interest saved is interest saved, and you’re not the kind of person to figure “oh it’s 0% interest, I’ll worry about it later!” and then not pay if off. 🙂

    Liked by 1 person

    • Exactly; there is no foreseeable reason that it won’t be paid off. If that actually happens, then that would mean that there are some seriously bigger problems in our lives to be worrying about than some credit card debt. So I’m not stressing in the least 🙂

      Liked by 1 person

  3. If it’s a student loan, it is unlikely that the interest compounds daily–this is typically only something you find on credit cards and loans offered to individuals with loan credit (e.g. rip-off car loans). That said, very likely that your interest accrued daily. And if you don’t pay it off within the required time, now it will start compounding daily.

    Liked by 2 people

    • That may be…that’s just how I interpreted the fine print I was reading…lol. Either way, we’ll be saving some money so I’m still good with it 🙂

      Thanks for stopping by my site, by the way! I’ll head over and check yours out, as well. Have a nice day!


  4. Hmmm I don’t know about the particulars of the using credit card checks but I am a big believer in using debt to your benefit of possible.

    I am starting to “travel hack” which involves opening credit cards to get rewards points for free travel. We already pay for most things on our credit card and pay it off monthly. The benefits we get for this method are a no-brainer in our situation. We also adhere to a budget and never charge more than what we can pay off in a month.

    As long as you make it your priority to pay off your debt and are in control of your spending, it seems like it can be a benefit in your situation.

    Liked by 1 person

    • Thank you for the input; I definitely agree that if the math works out in our favor, then using sent to our advantage makes perfect sense. It’s debt that we have to pay to SOMEBODY, one way or another, so it might as well be of some benefit to us.

      I really like the idea of travel hacking and, once we are completely debt free, I intend on looking further into doing that. Hope it works out well for you; send me a postcard when the trips start coming! lol 🙂

      Liked by 1 person

    • Thank you very much for your input! Everything by my calculations are looking good so we’re pretty excited to be saving the interest money. In the grand scheme of things it might not be THAT much…but every dollar in our pockets and not going out the door is a win in my book. I am FAR from a master…but I certainly appreciate the compliment! 🙂

      Liked by 1 person

    • We’re definitely not getting rich off this, but it is working out in our financial favor…plus we’re getting the psychological benefit of ridding ourselves of one of our few remaining debtors. This “small, controlled dose” is providing a cure and we’ll (hopefully :-S) never need a ‘script again! lol


  5. Years ago before the Great Recession hit, I would pay off my credit card debt by rolling it over from one credit card to another. I had about 13 cards that I would rotate my balances on. The best part about that time period was the lack of transfer balance fees which used to be zero. It seemed right about the time my balance was about to expire with the zero percent rate, I would get another offer from another card. It worked beautifully and I was able to pay down most of my credit card debt without taking a massive hit on interest charges.

    Now would I do it today with the transfer fees and rates today? I guess it depends on which way will allow you to get ahead. I’m only a fan of creative financing when it’s in our favor!

    Liked by 1 person

    • That’s incredible; too bad the credit card companies finally picked up on what you were doing and have since changed their games to the detriment of all of us. Way to go; it’s all your fault! lol JUST KIDDING!

      In all seriousness though, that really is awesome that you were able to do that and save yourself some money. I don’t intend on ever being in this situation again so this solution is a one-and-done for me. Mathematically, it’s the right move so I’ll enjoy the savings, no matter how little it may ultimately be. 🙂

      Liked by 1 person

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