No. of Recommendations: 0
I have the cash to pay off the card but I keep getting these low interest balance transfer offers. I am making large payments on the balance but I am also making considerably more interest on the cash. Am I crazy or just still a fool?

I believe in making informed decisions. In this case, it is weighing the rewards with the risks ("taking prudent risks"), with a dash of personal preferences.

An obvious reward is that you are "making considerably more interest" on the cash. Is this after accounting for taxes?

On the other hand, paying off credit card debt is like getting a guaranteed, tax free return on investment equal to the interest rate you are paying on the card.

One risk is that the low-interest balance transfer offers may dry up. (Some credit card companies will realize you are playing musical cards with the debt and stop their offers. Some other credit card companies will look for the least little excuse to do "rate jacking".) If you have allowed for this possibility (which it sounds like if you have enough cash to pay off the debt), it might not be a concern as long as you have liquid assets or cash that can be used to pay off the credit card debt when it becomes more expensive than the after-tax "interest" you are getting from your cash.

Depending on the instrument of where you cash is located, there may be the risk that the interest it is paying may go down.

If your personal preference is to be done with that debt or to just not worry about the balance transfer once every few months, it may be just as well to pay off the credit card debt. (That's what I would do, but I like to keep my finances simple.)

The first time I heard of carrying a balance at a teaser rate and saving in a money market account, I thought it was foolish until that person told me the interest rates, and then it started sounding Foolish. (Big F = good; small f = bad.) Even though it is not my cup of tea, I don't see it as poison, either.
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