Hello
I was wondering whether anybody has any advice on whether I should pay off a 0% debt or not?
Basically, I discovered MMM about a year ago and have completely transformed my financial life. In this time, I've paid off all of my debts but one.
The one I've yet to pay off is 12,500 on a 0% interest credit card. However, I also have about 50,000 cash in the bank (due to a windfall on starting a new job).
The debt on the credit card will be 0% interest for the next 24 months (until May 2017), it was a '0% for 36 months' deal and balance transferring all of my other credit card debt to this one was one of the first things I did as part of my re-financing. It was originally 33,000 but I've paid it down to this level.
Now, I've got access to a 3% savings account and so I'm torn. Psycologically I want to pay this off, I hate having debt and finally being able to say I'm debt free will no doubt feel great.
Conversely, I cannot shrug the knowledge that by putting the 12500 in the 3% savings account I can earn circa 770 in interest over the next 24 months and then pay off the debt in a single payment, but with an addtional 770 in my hand.
What do you think - is it better to clean the slate and start from a debt free position or would I be stupid to give up 770 of free money?