I am a graduate student and I am 33 years old. The only information I can locate is geared towards young students. I have a crippling amount of credit card debt but I am currently enrolled in a graduate program and I am eligible for enough excess student loan money to pay off the credit card debt. I realize this is simply "moving debt" but student loans are far more forgiving, can be delayed until after I graduate, and carry only a fraction of the interest rate. Why would I not borrow the maximum allowable amount on a student loan, and apply it towards high interest credit card debts now? Anyone have any ideas? Much appreciated!
2006-08-30 07:16:50 · 10 answers · asked by Mark M 1 in Business & Finance ➔ Personal Finance
Any time you can trade high interest debt for lower interest debt it is usually a good move. Of course, the best situation is to have no debt at all and only use the cards as a convenience (i.e. pay them in full each month to avoid the crushing interest charges).
If you move your debt to student loans be sure to avoid the temptation to once again max out your cards because you will then be left with both student loans as well as high interest credit cards to pay off.
2006-08-30 07:21:10 · answer #1 · answered by Anonymous · 0⤊ 1⤋
You wrote
"student loans are far more forgiving"
Not sure what you mean, but you can declare bankruptcy and get out of cc debt; not so with the student loan if it has any federal ties.
It is usually not a good idea to convert short term debt into long term and (as has been already stated in this thread), you can not borrow your way out of debt. Good Luck
2006-08-30 10:50:36 · answer #2 · answered by veritas 5 · 0⤊ 0⤋
Do it. I have a Master's degree. Worth the effort. With credit card debt you won't make it. Shake off the cards though. Cut them up & get help. See www.daveramsey.com
If you do this and keep the credit cards- you will end up the fool.
2006-08-30 07:20:16 · answer #3 · answered by John E 2 · 0⤊ 1⤋
Yes you should that interest will quickly add up. Did you ever ask your financial institution if they have a low interest credit card? Of course they will never tell you but if they do tell them you want to switch over. Consolidate...you won't believe how much interest you save.
2006-08-30 07:34:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, NO, NO!!
When will people learn: YOU CAN'T BORROW YOUR WAY OUT OF DEBT!!!
Bite the bullet and quit buying stuff you don't need, live on less than you make and pay what you owe.
Our grandparents would be ashamed of our choices today.
2006-08-30 07:23:18 · answer #5 · answered by BOB W 3 · 0⤊ 0⤋
try this first it might help best wishes
http://www.nohasslebargains.com/loan/clear_credit_card_debt.html
Clear Credit Card Debt
Financial Services
2006-08-30 08:54:13 · answer #6 · answered by Anonymous · 0⤊ 1⤋
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2006-08-30 12:04:30 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Don't get in any deeper than you already are! Things that seem too good to be true usually are!
2006-08-30 07:23:04 · answer #9 · answered by scorpion187us 4 · 0⤊ 0⤋
It's possible for sure
2016-08-08 13:52:25 · answer #10 · answered by Anonymous · 0⤊ 0⤋