I applaud you posting your progress for the world. Have you shared you process yet? If you have let me know the link, I’d like to read it. So far my favorite has been Dave Ramsey’s debt snowball effect.

Currently, my highest interest rate is 12.25%. So while I would save some interest, I might save more or less than $500. I’m not sure.

Lately, I’ve noticed credit card companies are advertising to business owners heavily during tax season. Why? To get them to pay their taxes with a credit card, of course!

But to do so, the credit card companies are charging pretty hefty fees. (Similar to what a person might pay for a balance transfer, cash advance, etc.)

I have considered doing it this way, but how much would the fees cut into the amount I saved by paying down debt? And would I be able to secure a low interest rate on the amount I borrow to pay the IRS?

It’s these unknown factors that make me want to save money now so I don’t wind up in a pickle later.

At least that way you put the money to use deferring debt for six months.

You’d avoid six months of interest, which would more money put towards paying off debt.

E.g. Let’s say you have $5000 right now that you’ll owe Uncle Sam in January.

You put that towards a line of credit (instead of saving it).

At 20% annual, you’ll save $500 in interest between now and then.

Even though you’ll have borrow it back, at least you saved $500 in interest. While if you keep it in savings, you’ll just make 2 or 3% interest.

Not saying that’s what you should do, but just wondering what you thought?