Pay off the 0% interest card early?

**ml2620** · 07-23-2010, 09:28 AM

We finally received our tax return check yesterday $10K! Woo Hoo!

The plan is to pay off the balance of our unsecured construction loan of $3809, and pay off the tractor through Lowes $2672.00. The balance will go to a new dehumidfier for the basement and funding the emergency fund.

We purchased the tractor through Lowes in April and got one of the zero interest deals where as long as we made minimum payments, we would accrue no interest for 12 months. We've been making steady (not minimum) payments every month, but now have the ability, if we want, to pay off the tractor.

Would you pay off the tractor and get it off your mind and plate, or would you bank the money in a EF Savings account at .25% interest and hope Murphy doesn't strike in a big way between now and next April, when the interest on the CC goes up to 22%?

I'm thinking pay it off, just wanted to run it by the experts.

**Russ** · 07-23-2010, 09:32 AM

I would pay it off. Done and gone.

btw... whay are you getting so much back in taxes?

**frugalwarrior2** · 07-23-2010, 09:33 AM

I would pay it off. I am sick of being master of nothing and owing. I paid off our street assessment in Jan and haven't thought of it since. Plus you can gazelle snowball cash w/ all those payments gone.

**Birdie** · 07-23-2010, 09:33 AM

I would pay if off and have one less thing to deal with. The low interest amount is not worth saving the money to me.

**frugalfoster** · 07-23-2010, 10:01 AM

Pay it off!

**ml2620** · 07-23-2010, 10:08 AM

Originally Posted by Russ

btw... whay are you getting so much back in taxes?

My husband has a significant tax debt incurred before our marriage. They had been taking our small taxes returned over the last 3 years. After quite a bit of research, I refiled for 2007, 2008 and 2009 with an affidavit explaining that the debts were incurred before our marriage and asked for my half of the returns back.

I got the returned back for both Federal and State for three years all at one time. That's never going to happen again, but it came at a great time (after alot of hard work!)

**Mom2-3** · 07-23-2010, 11:11 AM

After you pay off your Lowes, would you be consumer debt free? I would pay everything off that I could! It is an amazing feeling

You can celebrate with an ice cream!

**Libby** · 07-23-2010, 12:05 PM

I'm with everyone else - tell that debt to HIT THE ROAD JACK!!

**dcompton** · 07-23-2010, 01:03 PM

Yes, pay it off. Even if the interest you would earn was higher - and interest rates now are pathetic - it would be worth the cost not to have to think about it any more. Besides, if disaster struck and you needed to use that money from an EF, you would still have the CC to worry about. No debt is always better.

**TigerGirl1226** · 07-23-2010, 02:01 PM

I'd pay it off! I've been in the same place with a promotional interest free and it seemed as if I would not miss a payment for any reason. Then Murphy hit! I'd pay it off, less risky that way!

**Momto5RN** · 07-23-2010, 03:56 PM

pay off !!

**Wannabe** · 07-23-2010, 03:56 PM

I would pay it off also.
Then no worries about payments.

**mek42** · 07-23-2010, 07:36 PM

My Home Depot that was in no interest, no payments was the first one to go in my BS2. Had no impact on being to apply bigger snowball to next in the list, but peace of mind and motivational benefits galore.