I'm getting married in July, and my parents have decided to give us $3000 to use as part of a downpayment on a house, which we will probably not buy until at least the summer of 2005 (We'll have another $3000 or so saved by then). Here's my dilemma: in July, my total credit card debt will be $5200. I know the $3000 is supposed to be for the house, but I've been thinking about paying it to my cards. What this will do is save me at least $260 in interest, and pay them off 9 months sooner. In addition, at the end of that 9 months, whereas I would've had zero credit card balance and $3000 in the bank, I'll have zero credit card balance and $3600 in the bank (9 months times the $400/mth I would have paid on the cards). So, do you think I should do it? I don't see a downside to it, since the $3000 isn't going to collect $600 in interest sitting in the bank for 9 months.
Any opinions would be greatly appreciated!