Hey Everyone,
I have a promotional rate of 0% for my credit card that will last until January of next year. Besides deferring minor expenses (aka putting it on my credit card) and bolstering investment contributions, is there anything I should do or take advantage of since I essentially have 'free financing'. We typically use cash and the envelope system, but we have been putting more purchases on the credit card lately. I will pay off the card a little every month so the outstanding balance does not explode (IE more than $2-3K).
What do you guys think?
Actually - "we have been putting more purchases on the credit card lately" is a red flag to me. It's first and foremost a credit card - the goal is to pay it "all" off just before the due date. That in itself gives you a little leeway - and in effect a mini interest-free loan.
I think I know exactly where you are coming from and it is tempting an' all, but my advice is, forget you even have zero percent because bottom line - you have to pay it off in the end just the same and your extra $2-$3K may come due at a most inopportune time.
Use it as a "free" emergency fund or for a large unplanned purchase or project - but only if the need arises - don't even think along the lines of putting a little extra on it, that may come back to haunt you.
Just my two cents.
I do the occasional bank bonus and credit card bonus - see doctorofcredit.com it is an excellent blog with good information. But, I only care about 12-15-18 months of zero interest if I know we have an upcoming project we could use a little relief with.
I'm like you in that I'd like to take advantage - but it is too easy to get in trouble that way.