Don’t Pay Down Your Credit Card Balances
In a recent LRC article, I made the case for not paying down your credit card debt. Rather, if you expect the dollar to fall (and prices to rise) fairly rapidly over the next few years, then you should let your card balances roll over, and use the freed up dollars to buy assets such as physical gold or bonds denominated in other currencies.
I recently got a 12-month, 0% APR balance transfer offer, with a 3% transfer fee. So I transferred my (regrettably sizable) credit card balances on to this new card, and will use any savings in the coming months to (a) make payments on my tab with the IRS, (b) build up my reserves of very liquid funds, and (c) buy actual gold coins that I can bury in my backyard.*
*Figuratively speaking. Please don’t Google me and come to my house with a shovel.
