If you haven’t noticed yet, I run. Right now, I’m training for a 30km race in April which means long weekend runs. I was lucky with the weather during my latest long run, managed to swindle a ride to my start point to ensure that I had the wind at my back, and ran 22km home in sunshine and increasingly warm temperatures.
Just before my long run, I had opened the Mint app on my phone to double check my cash flow situation. It’s becoming a daily habit, partly because I’m obsessed with moving forward and partly to see whether I’ve been dinged for charges I didn’t expect. Yesterday, I got hit with a $131 finance charge for the stupid Mastercard debt. $131!! That’s like TWO race entry fees! OUCH. That made me mad and frustrated. I was dollars away from that balance hitting $6k purely because I was carrying a balance and paying the ridiculous interest rate.
I started the run, frustrated at myself for letting that balance grow, for getting hit by another finance charge, and not having control over the situation. I thought about it for over an hour while listening to podcasts (I listen to Budget and Cents, Dave Ramsey, M.O.N.E.Y., Tim Ferris. Pretty much anything that will inspire me to think, learn and perhaps act a little differently.) And then I hit a wall…but not the runners wall. The wall of OBVIOUSNESS.
Here’s the thing, my line of credit has a 3.7% interest rate. My credit card has a 19.99% interest rate. I have $12k of room in my line of credit. And $5,900 of credit card debt.
HOW DID I NOT SEE THIS?
Another hour later (an hour of lamenting my lack of vision) I got home. Before I even untied my shoes, I transferred the Mastercard balance to my line of credit.
Did I pay the Mastercard off? NO. But I did save myself a little bit of interest payment for the next 30 days, while I work on building that emergency fund.
What’s your opinion on short-term moves to save cash while you work on a bigger goal? Have you done that? Did it work out for you?