My solution is to pay for the braces with a 0% credit card and pay it off as you choose, as long as you can keep the 0% rate or transfer it to another 0% card.
This is because of the income tax medical expense deduction. If all medical expenses are more than 7.5% of your adjusted gross income you may deduct your medical expenses above the 7.5%. You MUST itemize to get the deduction.
If your adjusted gross income is less than $50k you have a deduction based on your braces expense alone. Factor in all other expenses you have and it may be well worth the deduction.
Ex. 50k AGI, 5k medical expenses 5000 - (50000 * .075) = $1250 is your deduction. Figure 15% of that is yours or $187.50.
Add in the interest you can earn on your savings and you have a nice 2 night stay at a waterpark for free!
More info on the tax deduction can be found here...
http://www.bankrate.com/brm/itax/tip...a.asp?caret=14