Is it a good idea to pay off debt using a student loan?
For example, we have 3 credit cards, as well as 3 alternative lines of credit which could be paid off regulating the tyro loan… is this the great idea? Why or Why not? Thanks!
There are 4 suggestions to question “Is it a good idea to pay off debt using a student loan?”
Hey,
That is a tricky proposition here. It’s like robbing Paul to pay Peter.
Have you thought about consolidating?
Read this article on the topic, I found it useful.
Good Luck and Happy Holodays
Once you get the loan it’s yours as long as you are a student. Most student loans do not always give out a large lump sum. Some repay you after you are enrolled, etc.
So first check, be certain how much you will get up front.As a good idea, sure the interest rate is much lower. But once you pay off don’t over use them again, that’s not going to keep you out of high interest debt.
But be sure their are no hidden caveats in a loan that can get you in trouble.
not a good idea its just borrowing money from one person to pay another. the debt will still exist. why do you have 3 credit cards thats your main problem right there. People should only have one card. Are you using your credit card for small things you buy like lunch or gas? STOP DOING THAT!! think about it 4 bucks per day really adds up. multiply that by everyday then factor in the interest you will have to pay on that amount. get a debit card for small stull like that.
Actually, that is not a bad idea. But it all depends on the type of student loan and the interest rate. Typically Stafford loans have very low interest rates. In fact, Suze Orman, last night was telling the guy to just make the min payments on the student loans and pay off other debt.
Remember, after you pay off the credit cards, do not cancel the cards. By doing so, it will lower your FICO score.
Hey,
That is a tricky proposition here. It’s like robbing Paul to pay Peter.
Have you thought about consolidating?
Read this article on the topic, I found it useful.
Good Luck and Happy Holodays
Once you get the loan it’s yours as long as you are a student. Most student loans do not always give out a large lump sum. Some repay you after you are enrolled, etc.
So first check, be certain how much you will get up front.As a good idea, sure the interest rate is much lower. But once you pay off don’t over use them again, that’s not going to keep you out of high interest debt.
But be sure their are no hidden caveats in a loan that can get you in trouble.
not a good idea its just borrowing money from one person to pay another. the debt will still exist. why do you have 3 credit cards thats your main problem right there. People should only have one card. Are you using your credit card for small things you buy like lunch or gas? STOP DOING THAT!! think about it 4 bucks per day really adds up. multiply that by everyday then factor in the interest you will have to pay on that amount. get a debit card for small stull like that.
Actually, that is not a bad idea. But it all depends on the type of student loan and the interest rate. Typically Stafford loans have very low interest rates. In fact, Suze Orman, last night was telling the guy to just make the min payments on the student loans and pay off other debt.
Remember, after you pay off the credit cards, do not cancel the cards. By doing so, it will lower your FICO score.