Wednesday, January 20, 2010

That's Just Brilliant

Allow me to share a personal "D'oh!" moment. Yesterday, I was checking the balance of my checking account, and I noticed something wrong. For all but one of my credit cards, I pay the balance in full every month. When I paid the bill for the other card a few days ago, I must have accidentally selected the option to pay the statement balance instead of just the minimum payment. Instead of paying the $40 minimum payment, I paid the full two grand balance. Fortunately, my checking account is linked to my second mortgage for overdraft protection. However, the only thing on that one card was a balance transfer from several years ago that was at a fixed 3.9% rate for the life of the balance. Most of my credit card debit from college was on that card, and for almost a decade now, I have been paying the minimum payment. With all the recent changes in the credit card industry, that might have been the last balance transfer offer without a cutoff date. The 3.9% rate on this card was a better rate than my first or second mortgage or my consolidated student loan. Now instead two grand with a fixed 3.9% rate, I have two extra grand on my second mortgage with a variable rate currently at 4.25%. Yes, I know it is not a really big deal, but it is enough to get me annoyed with myself.

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