While grilling some fat burgers on my balcony this evening, the realization popped into my head that at the current rate of interest I receive on my USD/TRY shorts, leveraged to the max (50:1, the most Oanda allows), I would receive in interest each month the current amount of my minimum credit card payments with just two-thirds of the amount of my debt on deposit in my forex account and just 10% of the total in play.

In other words, why aim for building up my forex account to the point of zeroing my debt, then cashing it out and doing so? The effect would be to cancel the monthly outlay of funds to service the debt, which would be the case if I paid them off in one go or if I came up with a secondary passive income source that could negate them. One path leads me to a zero debt balance and less expenditures, the other leads me to a wash on expenditures and a nice lump of equity in my pocket (not to mention that any amount more than zero can be easily grown, whereas starting from scratch is harder! Ever try to squeeze a capital gain out of zero?).

Given the above scenario, assuming my debts were to be frozen at their current balance and minimum required payment amounts, then by the time I have enough cash in my forex account to pay the debts off, the monthly income generated by the account would be nearly $98 more than the minimum debt repayment. Cashing it out to pay off the debt would thus represent a decrease in my income and free cash flow, not an increase. I imagine that this would hold true of any remaining debt balance vs. a smaller increasing forex balance such that it would never make sense to cash out the forex account and nuke the debt. By the time the forex account balance reaches that of the debt balance, the income generated by the forex account will always be higher than the minimum required payment on the debt (assuming these incredible forex interest rate differentials hold, which in the time frame I'm concerned with here is very likely).

Time to retinker my juggernaut...