Shuffling Debt: My Impatience has Gotten the Better of Me…
Using one of those 0% credit card offers, I wrote a $1500 check to myself and deposited it into my checking account yesterday as a pseudo birthday present to myself.
Once the check clears, probably today, I intend to send all $1500 towards my mortgage to put myself beyond the 22% mark on the balance which should kick off the automatic cancellation of PMI.
I have a sinking feeling that when I put in my third cancellation request that Countrywide will come back and say, “No, you actually need to hit the 25% mark before we cancel the PMI… Oh, and please send us an additional $135 too!”
A response like that will be deflating…
By the numbers alone, I would have made this benchmark later this month without taking this short-term loan but I feel a little bit more comfortable doing it this way as I’m not tapping myself out.
In reality, I’m not really taking on more debt — I’m just shuffling it around a bit to a lower interest rate. At least, that’s how I’m justifying it to myself…
From here on out, I’m going to relax the mortgage paydown pace and focus more on the auto loan. That should be finished in short order at which point I’ll focus more heavily on savings.
Oh, and let’s not forget the new $1500 balance I’ll have on my Chase credit card…
