Beginning to payoff debt!

This morning I made my first debt transfer - $300 into my EmigrantDirect Savings Account. $200 came from a bonus I mentioned in an earlier post from a Chase Business Savings Account. I transferred the $200 immediately to my local checking account and then to Emigrant. Why am I putting $300 into Emigrant instead of paying the debt directly?

Since I have the roof and other bills sitting in a 0% credit card for the next 12 months, I figured why make unnecessary payments early? Instead, my Emigrant account will remain untouched throughout the year, receiving transfers from me hopefully several times a month, and accumulate interest as well (right now 4.65%).

The other $100 was from Friday's payday. A little more cash should be freed up over the next month since our daycare provider is ill and we've had family members watching the kids (bonus - free daycare!) Also, February is a three paycheck month for us - usually the bulk of one payday goes to the mortgage, the bulk of the other goes to our Citi CashReturns Card (more on this later). With the extra payday in February, it gives us an opportunity to catch up on some other expenses or make a purchase we have been putting off. I think this year, most of that third payday will go to our debt, with a little set aside for our Summer Savings Account.

So $300 paid, much more to go.