^ Agreed. It is more than I typically carry and am all that comfortable with. But I would comfortably carry at least $20k in debt, which is why I want to get it down to or below that. I have most of the cash to cover that, and if needed can access other ways to pay it off were it to come down to it when it's due. That $40k will also naturally be reduced by the due dates because 100% of the minimums will go towards the principal.
I figure as long as I get it to the point where I could pay it all off if and when I choose, it wouldn't be any more riskier than a loan (especially since the risk is for a shorter term than most loans). I did consider risk though, as I have been using 0% credit card promotions as a budgeting method and free loan, for the better part of the last 10 years. It began as a coping strategy while I renovated my house using Home Depot 18mo - 24 mo 0% financing specials. Then I saw the benefit in saving up cash while continuing to spend on credit, package it, balance transfer it...save cash, package credit card debt, balance transfer...etc etc.
I have an emergency fund and multiple streams of income (which in of themselves are a form of an efund), so that also was factored into this strategy. I got wacked with a $12,000 plumbing bill/sewer line repair earlier this year, and had to spend several thousand last month for last minute international travel for my grandmother's funeral...and that all went on the card. Even though I had the cash to cover it...barely but I had it. I chose to let the cash earn me interest, and give myself some time to collect myself financially, and save. Fortunately other than the $38k mortgage and the credit card debt, I don't have any other debt, so am able to save close to 50% of my income.
But paying off the final $10k in credit card debt, would mean holding off on buying a property for at least year...which would mean paying rent for another year, which ideally I'd like to avoid.
I admit I tend to make the best decision I can for the present circumstances, then worry about preventing future fallout, well, in the future. I've been lucky so far and have various safety nets, so I'm less worried about how I will fare with a second mortgage and the debt, and more on how it will interfere with my plans to buy a property. I also don't plan on claiming rental income for the rental property, not for this next purchase. But I will for real estate purchases thereafter.